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Executive and Management Transition Costs
3 Months Ended
May 04, 2019
Executive Transition Costs [Abstract]  
Executive and Management Transition Costs [Text Block]
Executive and Management Transition Costs
On May 2, 2019, Robert J. Rosenblatt, the Company's Chief Executive Officer, was terminated from his position as an officer and employee of the Company and will receive the payments set forth in his existing employment agreement. The Company recorded charges to income totaling $1,922,000 as a result. Mr. Rosenblatt remained a member of the Company's board of directors. On May 2, 2019, in accordance with the Purchase Agreement, the Company's board of directors appointed Timothy A. Peterman to serve as Chief Executive Officer, effective immediately and entered into an employment agreement with Mr. Peterman. In conjunction with these executive changes as well as other executive and management terminations made during the first three months of fiscal 2019, the Company recorded charges to income totaling $2,031,000 for the three-months ended May 4, 2019, which relate primarily to severance payments to be made as a result of the chief executive officer and other management terminations and other direct costs associated with the Company's 2019 executive and management transition.
On April 11, 2018, the Company entered into a transition and separation agreement with its Executive Vice President, Chief Operating Officer/Chief Financial Officer, under which his position terminated on April 16, 2018 and he served as a non-officer employee until June 1, 2018. On April 11, 2018, the Company announced the appointment of a new Chief Financial Officer, effective as of April 16, 2018. In conjunction with this executive change as well as other executive and management terminations made during the first three months of fiscal 2018, the Company recorded charges to income totaling $1,024,000 for the three-months ended May 5, 2018, which relate primarily to severance payments to be made as a result of the executive officer and other management terminations and other direct costs associated with the Company's 2018 executive and management transition.
On May 29, 2019, subsequent to the fiscal 2019 first quarter, the Company announced the completion of a cost optimization event which is expected to eliminate approximately $15 million in annual overhead costs. The event included a 20% reduction to the Company's non-variable workforce. In connection with the cost optimization event, the Company's (a) Executive Vice President, Chief Financial Officer, (b) Senior Vice President, Chief Accounting Officer, (c) Executive Vice President, General Counsel & Corporate Secretary, and (d) Executive Vice President, Managing Director of Brand Development ceased serving in such roles effective May 28, 2019. The Company expects to record charges of approximately $4.0 million to $4.5 million for severance payments and other termination costs. On May 29, 2019, the Company announced the appointment of a new Chief Financial Officer, who was promoted from the previous position as Vice President, Finance and Investor Relations.