Note 3 - Restructuring Plan

3 Months Ended

Sep. 30, 2013

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Note 3 – Restructuring Plan

During third quarter of fiscal 2013, the Board of Directors (the “Board”) approved the Restructuring plan pursuant to which we reduced the complexity of our business through paring down the customer base we serve, focusing on the most profitable belts, small leather goods, and gifts products, streamlining our operations and further reducing operating expenses.

The primary components of the Restructuring included:  (1) eliminating unprofitable products; (2) reducing the amount of risk in our gifts business; (3) reducing corporate and distribution employee headcount; (4) closing or downsizing four facilities; (5) outsourcing and relocating our gifts distribution facility from Dallas to a third-party provider in California; and (6) exiting development efforts and accelerating recognition of future expenses associated with non-core brands.

The following table presents the movement in the severance liability and other restructuring costs (in thousands):

	Severance			Other			Total
Accrued restructuring charges, June 30, 2013	$	299		$	1,787		$	2,086
Charges		-			(524	)		(524	)
Cash spent		(290	)		(167	)		(457	)
Accrued restructuring charges, September 30, 2013	$	9		$	1,096		$	1,105

In connection with Restructuring we ceased development and marketing of gifts under the Sharper Image® license and recognized all future obligations ($0.9 million) as set forth in the original license agreement.  In August 2013, we entered into a settlement agreement for the Sharper Image® license in which we would pay $0.4 million to settle all remaining contractual obligations and terminate the license.  As a result of this settlement, we reversed $0.5 million of previously accrued restructuring charges during the first quarter of fiscal 2014.