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Restructuring Activities (Tables) | 3 Months Ended
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Jul. 28, 2024
Restructuring and Related Activities [Abstract] |
Summary of Restructuring Expense and Restructuring Related Charges | The following summarizes accrued restructuring costs for the three-month period ending July 28, 2024:
|  | Employee |  |  | Other |  |  |  |
|  | Termination |  |  | Associated |  |  |  |
(dollars in thousands) |  | Benefits |  |  | Costs |  |  | Total |
Beginning balance |  | $ | — |  |  | $ | — |  |  | $ | — |
Expenses incurred |  |  | 689 |  |  |  | 288 |  |  |  | 977 |
Change in estimate adjustments |  |  | — |  |  |  | — |  |  |  | — |
Payments |  |  | (72 | ) |  |  | (276 | ) |  |  | (348 | )
Foreign currency exchange remeasurement |  |  | (7 | ) |  |  | — |  |  |  | (7 | )
Ending balance |  | $ | 610 |  |  | $ | 12 |  |  | $ | 622 |
The following summarizes the activity in accrued restructuring costs for the three-month period ending July 28, 2024:
(dollars in thousands) | Total |
Beginning balance (1) | $ | 3 |
Expenses incurred (2) |  | 14 |
Payments |  | (6 | )
Ending balance (3) | $ | 11 |
(1) Accrued restructuring expense of $3,000 was reported within accrued expenses in the Consolidated Balance Sheet for the period ending April 28, 2024. (2) Expenses incurred represents other associated costs. (3) Accrued restructuring expense of $11,000 was reported within accrued restructuring in the Consolidated Balance Sheet for the period ending July 28, 2024.
Summary of Activity in Accrued Restructuring | The following summarizes the restructuring and restructuring related charges for the three-month period ending July 28, 2024:
|  |  | Three Months Ended |
(dollars in thousands) |  |  | July 28, 2024 |
Additional depreciation expense for shortened useful lives of equipment |  |  | $ | 875 |
Employee termination benefits |  |  |  | 689 |
Lease termination costs |  |  |  | 670 |
Other Associated Costs |  |  |  | 288 |
Loss on disposal and markdowns of inventory |  |  |  | 116 |
Impairment and loss on disposal of equipment |  |  |  | 95 |
Restructuring expense and restructuring related charges (1) |  |  | $ | 2,733 |
(1) Of the total $2.7 million restructuring and restructuring related charges, $2.6 million and $116,000 were classified within restructuring expense and cost of sales, respectively, in the Consolidated Statement of Net Loss for the three-month period ending July 28, 2024. Of the total $2.7 million, $2.6 million and $118,000 relate to the mattress fabrics and upholstery fabrics segments, respectively. The following summarizes our restructuring expense and restructuring related charges for the three months ending July 30, 2023:
|  |  | Three Months Ended |
(dollars in thousands) |  |  | July 30, 2023 |
Employee termination benefits |  |  | $ | 101 |
Impairment loss - equipment |  |  |  | 237 |
Loss on disposal and markdowns of inventory |  |  |  | 179 |
Restructuring expense and restructuring related charges (1) |  |  | $ | 517 |
(1) Of the total $517,000, $338,000 and $179,000 were recorded within restructuring expense and cost of sales, respectively, in the Consolidated Statement of Net Loss for the three-month period ending July 30, 2023.
Summary of Assets Held for Sale | A summary of assets held for sale as of July 28, 2024 follows:
(dollars in thousands) |  |  | July 28, 2024 |
Equipment (1) |  |  | $ | 357 |
Right of use asset (2) |  |  |  | 250 |
Ending Balance |  |  | $ | 607 |
(1) In connection with the Fiscal 2025 Restructuring Plan noted above, equipment with a carrying value totaling $357,000 was classified as held for sale as of July 28, 2024. We determined that the fair value of this equipment exceeded its carrying value based on quoted market prices from dealers of this type of equipment. Therefore, no impairment charge was recorded during the first quarter of fiscal 2025. The carrying value of these assets held for sale are presented in the first quarter fiscal 2025 Consolidated Balance Sheet are are no longer being depreciated. (2) In connection with the Fiscal 2025 Restructuring Plan noted above, we entered into an agreement ("Termination Agreement") on August 2, 2024, to terminate a lease of a plant facility ("Right of Use Asset") located in Ouanaminthe, Haiti. Accordingly, as of July 28, 2024, we classified this Right of Use Asset as held for sale at its fair value of $250,000, which was lower than its carrying value totaling $656,000. Consequently, we recorded an impairment charge of $406,000 reflected as lease termination costs in the table above, that was classified within restructuring expense in our Consolidated Statement of Net Loss for the three-month period ending July 28, 2024. The fair value of this Right of Use Asset represents the amount due from the Lessor totaling $250,000, which is the amount stated in the Termination Agreement, and is expected to be paid no later than February 28, 2025. We believe the fair value amount of $250,000 as stated in the Termination Agreement, represents a significant observable input, and therefore this Right of Use Asset was classified as level two within the fair value hierarchy (see Note 11 for criteria for the classifications within the fair value hierarchy).

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- Definition Tabular disclosure of long lived assets held for sale. Disclosure may include the description of the facts and circumstances leading to the expected disposal, manner and timing of disposal, the carrying value of the assets held for sale, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 3 -SubTopic 10 -Topic 360 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482099/360-10-50-3 + Details
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- Definition Tabular disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 5.P.3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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- Definition Tabular disclosure of an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost. This element may also include a description of any reversal and other adjustment made during the period to the amount of an accrued liability for restructuring activities. This element may be used to encapsulate the roll forward presentations of an entity's restructuring reserve by type of cost and in total, and explanation of changes that occurred in the period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.b.2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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