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Exit and Disposal Activity
3 Months Ended
Jul. 29, 2018
Restructuring and Related Activities [Abstract]  
Exit and Disposal Activity

11. Exit and Disposal Activity

On June 12, 2018, our board of directors decided to close our upholstery fabrics manufacturing facility in Anderson, South Carolina. This closure is due to a continued decline in demand for the products manufactured at this facility, reflecting a change in consumer style preferences. We expect to close this facility during the second quarter of fiscal 2019. Restructuring expense and related charges totaled $2.0 million of which $1.6 million represented inventory markdowns and $451,000 represented employee termination benefits. Of this total charge, $1.6 million and $451,000 were recorded in cost of sales and restructuring expense in the Consolidated Statement of Net Income for the three-month period July 29, 2018.

 

As of July 29, 2018, accrued restructuring costs represented $445,000 for employee termination benefits, of which a $451,000 accrual was established as noted above, less $6,000 in severance payments during the three-month period ending July 29, 2018.

Currently, management expects to offset most of the $2.0 million charge over the second and third quarters from sale of associated property, plant, and equipment.