2019 Upholstery Fabrics Restructuring Plan

12 Months Ended

May 03, 2020

Restructuring And Related Activities [Abstract]

2019 Upholstery Fabrics Restructuring Plan

12. 2019 UPHOLSTERY FABRICS RESTRUCTURING PLAN

On June 12, 2018, our board of directors announced the closure of our upholstery fabrics manufacturing facility located in Anderson, South Carolina. This closure was completed during the second quarter of fiscal 2019 and was due to a continued decline in demand for the products manufactured at this facility, reflecting a change in consumer style preferences.

The following summarizes our restructuring credit and related charges that were associated with this restructuring plan described above:

(dollars in thousands)	2020			2019
Inventory markdowns	$	—		$	1,564
Other operating costs associated with a closed facility		—			824
Employee termination benefits		(70	)		661
Gain on sale of property, plant, and equipment		—			(1,486	)
Restructuring credit and restructuring related charges (1) (2)	$	(70	)	$	1,563

(1) The $70,000 credit was recorded to restructuring credit in the accompanying fiscal 2020 Consolidated Statement of Net Loss.

(2) Of the total net charge, a $2.3 million charge, a charge of $40,000, and a credit of $825,000 were recorded in cost of sales, selling, general and administrative expenses, and restructuring credit, respectively, in the accompanying fiscal 2019 Consolidated Statement of Net Income.

The following summarizes the activity in the restructuring accrual:

(dollars in thousands)	2020			2019
Beginning balance	$	124		$	—
Accrual established in fiscal 2019		—			451
Payments		(54	)		(538	)
Adjustments		(70	)		211
Ending balance	$	—		$	124

The above restructuring accrual pertains to employee termination benefits that were associated with this restructuring plan described above.