SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

On May 10, 2024, in connection with the Company's restructuring of its durable manufacturing operations, the Company entered into an agreement with CM Fabrication, LLC, (the “Buyer”) to sell assets relating to the production of certain durable equipment products, including an estimate of approximately $16,000 of inventories, property, plant and equipment, and other assets to the Buyer for approximately $8,700 (the “Asset Sale”). In connection with the Asset Sale, the Company intends to terminate and payoff the facility operating lease estimated at approximately $1,300 and certain equipment finance leases estimated at approximately $700. The Asset Sale is expected to close in the second quarter of 2024, subject to customary closing conditions. The Company estimates it will record a loss on the disposition of the tangible and intangible assets of approximately $12,000 in the second quarter of 2024, upon closing of the Asset Sale.

The Company will continue to sell its proprietary branded durable products. In connection with the transaction, the Company is entering into an exclusive supply agreement with the Buyer to provide for contract manufacturing, yielding a more efficient cost model going forward. JPMorgan Chase Bank, N.A., as administrative agent to the Company’s Revolving Credit Facility, granted a consent to permit the Asset Sale. In accordance with the Company’s Term Loan, the net proceeds from the Asset Sale transaction are required to be reinvested into certain permitted investments, such as capital expenditures, or offered to prepay Term Loan principal.