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Discontinued Operations
6 Months Ended
Aug. 26, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations
On February 24, 2017, the Company completed the sale of its JackRabbit division to affiliates of CriticalPoint Capital, LLC (the “Buyers”). The transaction took the form of a sale by the Company of its entire membership interest in its affiliated company, which owns JackRabbit, and payments totaling $11.1 million, which includes a working capital adjustment agreed to with the Buyers on June 23, 2017 of $1.0 million, of which $0.8 million remains payable as of August 26, 2017 once certain conditions have been met by the Buyers. The Buyers acquired all JackRabbit assets including inventory, leasehold interests, customary liabilities, intellectual property, and the JackRabbit trademark and name pursuant to the purchase agreement.
The sale of JackRabbit resulted in an aggregate loss of $34.1 million, which represented the total cash payments to the Buyers of $11.1 million, net assets assumed by the Buyers of $18.3 million, and one-time costs of approximately $4.7 million associated with the transaction.
Net loss from discontinued operations for the thirteen and twenty-six weeks ended August 26, 2017 include the working capital adjustment of $1.0 million, offset by certain one-time benefits recorded that were associated with the JackRabbit division and the income tax benefit associated with the loss for the periods presented.
The following table presents key financial results of the Company included in “Net loss from discontinued operations, net of tax” (in thousands):

 
 
Thirteen Weeks Ended 
 August 27, 2016
 
Twenty-Six Weeks Ended 
 August 27, 2016
Net sales
 
$
24,247

 
$
47,718

Cost of sales (including occupancy costs)
 
18,482

 
35,319

Gross profit
 
5,765

 
12,399

Selling, general, and administrative expenses
 
7,713

 
15,063

Impairment charges and store closing costs
 
154

 
189

Loss from discontinued operations before income tax benefit
 
(2,102
)
 
(2,853
)
Income tax benefit
 
820

 
1,109

Net loss from discontinued operations, net of tax
 
$
(1,282
)
 
$
(1,744
)


The following table presents the major classes of assets and liabilities presented as held for sale as of August 27, 2016, related to JackRabbit (in thousands):

ASSETS
 
 
Current assets:
 
 
Accounts receivable, net
 
$
1,062

Merchandise inventories, net
 
25,878

Other
 
220

Total current assets
 
27,160

Property and equipment, net
 
3,992

Goodwill
 
44,029

Other assets, net
 
908

Total assets
 
$
76,089


LIABILITIES
 
 
Current liabilities:
 
 
Accounts payable
 
$
10,224

Employee compensation
 
945

Accrued property and sales tax
 
625

Other liabilities and accrued expenses
 
2,397

Total current liabilities
 
14,191

Deferred credits from landlords
 
1,980

Other long-term liabilities
 
39

Total liabilities
 
$
16,210