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Garysburg, North Carolina Facility | 12 Months Ended
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Jun. 25, 2020
Damage From Fire In Business Unit [Abstract] |
Garysburg, North Carolina Facility | NOTE 20 — GARYSBURG, NORTH CAROLINA FACILITY On October 7, 2019 we experienced a fire at our peanut processing facility located in Garysburg, North Carolina. No personnel were injured, and there was no damage to our peanut shelling and inventory storage areas. The fire occurred in our roasting room where all of the roasting equipment was destroyed. The fire also damaged some equipment in our packaging room and a portion of the roof. We contracted with a third party to roast and salt our inshell peanuts to meet our current production requirements. We did not experience any negative impact on our customer service levels or a material adverse impact on our operating or financial results for the 2020 fiscal year. After evaluating our options with regard to our peanut production operations, the Company is considering strategic alternatives for this facility and currently plans to cease all operations at the Garysburg facility permanently in fiscal 2021. We will finish shelling the current crop of peanuts at this facility, which is estimated to take approximately four to seven more months, after which the facility will continue to be used to store and ship inshell peanuts through the remainder of fiscal 2021. We ceased roasting operations in the second quarter of this fiscal year, which resulted in a partial reduction in the workforce at this facility and we recognized an immaterial amount of separation costs in the second quarter of fiscal 2020. We have adequate property damage and business interruption insurance, subject to applicable deductibles. To date, approximately $2,000 in clean-up costs and damage to capital assets has been incurred. Insurance claims have been filed under our property damage and business interruption policies. Insurance proceeds totaling $2,934 were received from the insurance carrier in the second and fourth quarters of this fiscal year. Insurance proceeds received for damage to capital equipment are recorded as investing activities on the Consolidated Statements of Cash Flows.

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