Exit and Disposal Activity

9 Months Ended

Feb. 02, 2020

Restructuring And Related Activities [Abstract]

11. Exit and Disposal Activity

On June 12, 2018, our board of directors announced the closure of our upholstery fabrics manufacturing facility located in Anderson, South Carolina. This closure was completed during the second quarter of fiscal 2019 and was due to a continued decline in demand for the products manufactured at this facility, reflecting a change in consumer style preferences.

The following summarizes our restructuring credit and restructuring related charges that were associated with the above exit and disposal activity:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Inventory markdowns	$	—		$	1,564
Employee termination benefits		(70	)		661
Other operational costs associated with a closed plant facility		—			824
Gain on sale of equipment		—			(1,486	)
Restructuring credit and restructuring related charges (1) (2)	$	(70	)	$	1,563

(1)	The $70,000 credit was recorded to restructuring credit in the Consolidated Statements of Net (Loss) Income for the nine-month period ending February 2, 2020.

(2)

Of the total net charge, a $2.3 million charge, a charge of $40,000, and a credit of $825,000 were recorded in cost of sales, selling, general and administrative expenses, and restructuring credit, respectively, in the Consolidated Statements of Net Income for the nine-month period ending January 27, 2019.

The following summarizes the activity in accrued restructuring costs:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Beginning balance	$	124		$	—
Accrual established in fiscal 2019		—			451
Payments		(54	)		(434	)
Adjustments		(70	)		211
Ending balance	$	—		$	228

The above restructuring accrual pertains to employee termination benefits that were associated with the above exit and disposal activity.