Subsequent Events

6 Months Ended

Jul. 15, 2017

Subsequent Events [Abstract]

Subsequent Events

18. SUBSEQUENT EVENTS

The company has evaluated subsequent events since July 15, 2017, the date of these financial statements. We believe there were no material events or transactions discovered during this evaluation that require recognition or disclosure in the financial statements other than the items discussed below.

On July 17, 2017, the company commenced a voluntary employee separation incentive plan (the “VSIP”) as part of its effort to restructure, streamline operations and better position the company for profitable growth. The VSIP is available to certain employees who meet the VSIP’s age, length-of-service and business function criteria. Employees who elect to participate in the VSIP will receive enhanced separation benefits. The VSIP is expected to be substantially completed by the end of fiscal 2017.  

The company currently does not know which employees will elect to participate in the VSIP. Accordingly, the company is unable to estimate the costs of the VSIP, which will consist primarily of employee severance and benefits-related costs. The company will provide an estimate of the amount or range of costs and benefits when a good faith determination can be made, which is expected to be in the third quarter of 2017.

On August 9, 2017, the company announced the closure of a warehouse delivery snack cake plant in Winston-Salem, North Carolina.  We expect to close the bakery in early October 2017.  The closure costs are estimated to be between $4.0 million and $6.0 million and are expected to be finalized and recorded in our third quarter of fiscal 2017.