Related Parties

3 Months Ended

Jul. 02, 2011

Related Parties

Related Parties

7. Related Parties

Members of the Cagle family beneficially own, in the aggregate, 64.5% of the Company’s outstanding common stock, giving them control of 64.5% of the total voting power of the Company’s outstanding voting stock.  In addition, three members of the Cagle family serve on the Company’s Board of Directors.  As a result, members of the Cagle family have the ability to exert substantial influence or actual control over the Company’s management and affairs, and over substantially all matters requiring action by the stockholders, including amendments to the certificate of incorporation and bylaws, the election and removal of directors, any proposed merger, consolidation or sale of all or substantially all assets, and other corporate transactions.  This concentration of ownership may also delay or prevent a change in control otherwise favored by other stockholders and could depress the Company’s stock price.

The firm of Byrne, Davis & Hicks, P. C., in which G. Bland Byrne, III a director of the Company, is a principal, receives retainer payments of $60 each quarter from the Company for legal services rendered.  Retainer and other payments of $61 and $65 were made by the Company during the 13 weeks ended July 2, 2011 and July 3, 2010, respectively.

Included in other assets at July 2, 2011 and April 2, 2011 is a receivable of $1,242 due to the Company from two related party irrevocable life insurance trusts.  The Company will ultimately be repaid from the death benefits of the underlying policies.