RESTRUCTURING ACTIVITIES AND ASSET IMPAIRMENTS

9 Months Ended

Apr. 30, 2016

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

RESTRUCTURING ACTIVITIES AND ASSET IMPAIRMENTS

2016 Cost-Saving Measures

During the fourth quarter of fiscal 2015, the Company announced that its contract as a distributor to Albertsons Companies, Inc., which includes the Albertsons, Safeway and Eastern Supermarket chains, would terminate on September 20, 2015 rather than upon the original contract end date of July 31, 2016. During fiscal 2016, the Company implemented Company-wide cost-saving measures in response to this lost business.

The various cost-saving measures implemented in fiscal 2016 resulted in total restructuring costs of $4.4 million during the nine months ended April 30, 2016, all of which was recorded during the first six months of fiscal 2016. There were no additional costs recorded during the three months ended April 30, 2016. These initiatives resulted in a reduction of employees, the majority of which were terminated during the first quarter of fiscal 2016, across the Company. The total work-force reduction charge of $3.4 million recorded during the nine months ended April 30, 2016, was primarily related to severance and fringe benefits. In addition to workforce reduction charges, the Company recorded $0.9 million during the nine months ended April 30, 2016 for costs due to an early lease termination and facility closure and operational transfer costs associated with these initiatives.

The following is a summary of the restructuring costs the Company recorded in the first nine months of fiscal 2016, as well as the remaining liability as of April 30, 2016 (in thousands):

	Restructuring Costs		Cash Payments			Restructuring Cost Liability as of April 30, 2016
Severance	$	3,443	$	(2,241	)	$	1,202
Early lease termination and facility closing costs	368		(368		)	—
Operational transfer costs	570		(570		)	—
Total	$	4,381	$	(3,179	)	$	1,202

The Company anticipates that the remaining liability related to the workforce reduction will be substantially paid by the end of fiscal 2016.

Canadian Facility Closure

During fiscal 2015, the Company ceased operations at its Canadian facility located in Scotstown, Quebec which was acquired in 2010. In connection with this closure, the Company recognized restructuring and impairment charges of $0.8 million during the nine months ended May 2, 2015. Additionally, during the second quarter of fiscal 2016, the Company recognized an additional impairment charge of $0.4 million related to the long lived assets at the facility.