COMMITMENTS AND CONTINGENCIES

12 Months Ended

May. 29, 2015

Commitments and Contingencies Disclosure [Abstract]

NOTE 12– COMMITMENTS AND CONTINGENCIES

Rental expense was $725,947 in 2015 and $1,200,883 in 2014.

The Company has entered into various operating lease agreements to replace aging route vans and transport trucks. The current annual obligation under this agreement is $151,102. Future minimum lease commitments for operating leases at May 29, 2015 were as follows:

2016		151,102
2017		151,102
2018		151,102
2019		88,143
2020		-

The Company has a letter of credit in the amount of $1,850,000 outstanding at May 29, 2015 and $1,850,000 at May 30, 2014. The letter of credit supports the Company’s commercial self-insurance program. The Company pays an annual commitment fee of 0.75% to maintain the letters of credit.

The Company has entered into various other short term purchase commitments with suppliers for raw materials in the normal course of business.

The Company is subject to routine litigation and claims incidental to its business. In the opinion of management, such routine litigation and claims should not have a material adverse effect upon the Company’s consolidated financial statements taken as a whole.