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Restructuring
 6 Months Ended
Jan. 27, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
In June 2022, we announced a restructuring plan (the “2022 Restructuring Plan”) to reduce our future fixed and variable operating costs and allow us to centralize key capabilities, strengthen decision-making to drive efficiencies, and ensure we are allocating resources to our most critical priorities.
In furtherance of and as an expansion of the 2022 Restructuring Plan, in January 2023, we implemented a plan of termination (“January 2023 Reduction in Force”). The January 2023 Reduction in Force reduced our then-current employee workforce by approximately 6%, including approximately 20% of our then-salaried positions. During fiscal 2023, we recorded an aggregate $36.4 million of restructuring charges related to this action, primarily consisting of severance and employee-related benefits; impairment related to a portion of our corporate office space; and accelerated depreciation expense related to assets at our Salt Lake City fulfillment center, which were not transferred to other fulfillment centers in our network and for which we did not have immediate plans to use.
In furtherance of and as an expansion of the 2022 Restructuring Plan, in June 2023, we announced the intended closures of our fulfillment centers in Bethlehem, Pennsylvania and Dallas, Texas (the “Bethlehem and Dallas Closures”). The Bethlehem, Pennsylvania location ceased operations during the three months ended October 28, 2023, and we expect the Dallas, Texas location to cease operations in the three months ending April 27, 2024. During fiscal 2023, we recorded an aggregate $2.6 million related to this action, primarily consisting of severance and employee-related benefits, and accelerated depreciation expense and other restructuring costs. During the three and six months ended January 27, 2024, we recorded $6 million and $14 million of restructuring charges related to the Bethlehem and Dallas closures, primarily consisting of severance and employee-related benefits, and accelerated depreciation expense and other restructuring costs.
In furtherance of and as an expansion of the 2022 Restructuring Plan, in January 2024, we implemented an organization realignment that resulted in the further elimination of styling leadership and corporate positions. During the three and six months ended January 27, 2024, we recorded $2.2 million related to this action, primarily consisting of severance and employee-related benefits.
The components of total restructuring charges were as follows:
For the Three Months EndedFor the Six Months Ended
(in thousands)January 27, 2024January 28, 2023January 27, 2024January 28, 2023
Cash restructuring charges:
Severance and employee-related benefits
$3,827 $15,571 $6,289 $16,498 
Other
1,157 135 1,805 135 
Non-cash restructuring charges:
Asset impairments (2)
— 16,874 — 16,874 
Accelerated depreciation
3,159 1,755 7,337 1,755 
Other
251 232 913 232 
Total restructuring (1)
$8,394 $34,567 $16,344 $35,494 
(1) Recorded in selling, general, and administrative expenses on the condensed consolidated statements of operations and comprehensive loss.
(2) Includes impairments of both operating lease right-of-use assets and property and equipment.
The following table provides the changes in the Company’s restructuring related liabilities, which are included within accounts payable and accrued liabilities on the condensed consolidated balance sheets:
(in thousands)Severance and Employee Related Benefits and Other
Balance at July 29, 2023
$1,923 
Charges incurred8,094 
Cash payments(5,011)
Balance at January 27, 2024
$5,006 
In January 2024, we revised our compensation model for full-time stylists to move to a part-time only model, whereby stylists who will opt to continue with the company will be paid one-time restructuring bonuses over the next three quarters to continue to serve the Company.
Related to the 2022 Restructuring Plan and stylist compensation restructuring, we estimate we will incur between $4 million and $5 million of additional cash restructuring charges over the next three fiscal quarters, with substantially all of the cash payments to be completed by the end of the first quarter of fiscal 2025. We estimate that we will also incur between $1 million and $2 million in additional accelerated depreciation expense for fixed assets at the Dallas, Texas fulfillment center over the next fiscal quarter.