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Subsequent Event
3 Months Ended
Mar. 28, 2020
Subsequent Event [Abstract]  
Subsequent Event
SUBSEQUENT EVENT

The Company, in response to the COVID-19 pandemic, adjusted the credit commitment of its senior loan facility to more closely resemble the amount of collateralized assets currently available as well as increasing the amount of credit available to the Company. The loan commitment for the Credit Agreement between The Dixie Group, Inc. and Wells Fargo Capital Finance, LLC, the Agent, dated as of September 13, 2011 and most recently amended by the Fourteenth Amendment dated as of May 14, 2020, will be reduced from $120,000 to $100,000 effective May 14, 2020. The Company’s applicable margin has been amended to no longer be subject to average daily excess availability.  The applicable margin on base rate loans will be 2.25% and LIBOR rate loans will be 3.25%.  The availability limitation related to the fixed coverage ratio has also been amended from $15,000 to $12,500.  As part of the agreement, the Company has agreed to pursue and consummate a permitted fixed asset loan on or before June 30, 2020 subject to extension at agent’s discretion. Effective May 14, 2020, as part of the amendment, the Company’s availability block has been amended to $3,500. Subsequent to closing on the fixed asset loan or passage of the deadline for consummation of the loan, the availability block will increase to $6,500.

Subsequent to the fiscal quarter ended March 28, 2020, as the extent of the COVID-19 pandemic became apparent, the Company implemented a continuity plan to maintain the health and safety of associates, preserve cash, and minimize the impact on customers. The response included restrictions on travel, implementation of telecommuting where appropriate and limiting contact and maintaining social distancing between associates and with customers. In line with demand, running schedules have been reduced for most facilities to one shift while simultaneously reducing inventories to align them with the lower customer demand. Cost reductions were implemented including cutting non-essential expenditures, reducing capital expenditures, rotating layoffs and furloughs, select job eliminations and temporary salary reductions. The Company also deferred new product introductions and reduced sample and marketing expenses for 2020. Initiatives were taken with suppliers, lenders and landlords to extend payment terms in the second quarter for existing agreements. The Company is taking advantage of deferral of payroll related taxes under the CARES act as well as deferring payments into its defined contribution retirement plan. The expenses incurred as a result of the continuity plan will be under restructuring and disclosed as such in future filings.