Contingencies

6 Months Ended

Mar. 31, 2013

Contingencies [Abstract]

Commitments And Contingencies Disclosure [Text Block]

8. CONTINGENCIES

Legal Proceedings

The Company is involved in certain legal actions and claims arising in the ordinary course of business. Management believes (based, in part, on advice of legal counsel) that such contingencies, including the matters described below, will be resolved without materially and adversely affecting our financial position, results of operations or cash flows. We intend to vigorously contest the claims and grievances described below.

Agustiana, et al. v. Overhill Farms.

On July 1, 2009, Bohemia Agustiana, Isela Hernandez, and Ana Munoz filed a purported “class action” against the Company in which they asserted claims for failure to pay minimum wage, failure to furnish wage and hour statements, waiting time penalties, conversion and unfair business practices. The plaintiffs are former employees who had been terminated one month earlier because they had used invalid social security numbers in connection with their employment with the Company. They filed the case in Los Angeles County on behalf of themselves and a class which they say includes all non-exempt production and quality control workers who were employed in California during the four-year period prior to filing their complaint. The plaintiffs seek unspecified damages, restitution, injunctive relief, attorneys' fees and costs.

The Company filed a motion to dismiss the conversion claim, and the motion was granted by the court on February 2, 2010.

On May 12, 2010, Alma Salinas filed a separate purported “class action” in Los Angeles County Superior Court against the Company in which she asserted claims on behalf of herself and all other similarly situated current and former production workers for failure to provide meal periods, failure to provide rest periods, failure to pay minimum wage, failure to make payments within the required time, unfair business practice in violation of Section 17200 of the California Business and Professions Code and Labor Code Section 2698 (known as the Private Attorney General Act (“PAGA”)). Salinas is a former employee who had been terminated because she had used an invalid social security number in connection with her employment with the Company. Salinas sought allegedly unpaid wages, waiting time penalties, PAGA penalties, interest and attorneys' fees, the amounts of which are unspecified. The Salinas action has been consolidated with the Agustiana action. The plaintiffs thereafter dropped their rest break and PAGA claims when they filed a consolidated amended complaint.

In about September 2011, plaintiffs Agustiana and Salinas agreed to voluntarily dismiss and waive all of their claims against the Company. They also agreed to abandon their allegations that they could represent any other employees in the alleged class. The Company did not pay them any additional wages or money.

The remaining plaintiff added four former employees as additional plaintiffs. Three of the four new plaintiffs are former employees that the Company terminated one month before this case was filed because they had used invalid social security numbers in connection with their employment with the Company. The fourth new plaintiff has not worked for the Company since February 2007.

On June 26, 2012, the court denied the plaintiffs' motion to certify the case as a class action, and it dismissed the class allegations. The five remaining plaintiffs can pursue their individual wage claims against the Company, but the court has ruled that they cannot assert those claims on behalf of the class of current and former production employees they sought to represent. The Company believes it has valid defenses to the plaintiffs' remaining claims, and that we paid all wages due to these employees.

On September 7, 2012, the plaintiffs filed a notice to appeal the denial of class certification. The case is stayed while their appeal is pending.

Concentrations of Credit Risk

Cash used primarily for working capital purposes is maintained in two accounts with a major financial institution. The account balances as of March 31, 2013exceeded the Federal Deposit Insurance Corporation insurance limits. If the financial banking markets experience disruption, the Company may need to temporarily rely on other forms of liquidity, including borrowing under its credit facility.

The Company's financial instruments that are exposed to concentrations of credit risk consist primarily of trade receivables. The Company performs on-going credit evaluations of each customer's financial condition and generally requires no collateral from its customers. A bankruptcy or other significant financial deterioration of any customer could impact its future ability to satisfy its receivables with the Company. Allowance for doubtful accounts is calculated based primarily upon historical bad debt experience and current market conditions. For the first six months of fiscal years 2013 and 2012, write-offs, net of recoveries, to the allowance for doubtful accounts were immaterial.

A significant portion of the Company's total net revenues during the first six months of fiscal years 2013 and 2012 were derived from three customers, as described below:

Net Revenues
(unaudited)
	March 31,	April 1,
Customer	2013	2012
Panda Restaurant Group, Inc.	31%	27%
Jenny Craig, Inc.	17%	22%
Safeway Inc.	14%	16%

A significant portion of the Company's total receivables were derived from four customers as described below:

Receivables
	March 31,	September 30,
Customer	2013	2012
	(unaudited)
Bellisio Foods, Inc. (for various third party customers)	29%	21%
Panda Restaurant Group, Inc. (through its distributors)	23%	36%
Safeway Inc.	14%	10%
Jenny Craig, Inc.	12%	14%