XML 56 R18.htm IDEA: XBRL DOCUMENT v3.20.1
Subsequent Events
12 Months Ended
Jan. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events
On March 11, 2020, the World Health Organization declared the current coronavirus (COVID-19) outbreak to be a global pandemic. In response to this declaration and the rapid spread of COVID-19 within the United States, federal, state and local governments throughout the country have imposed varying degrees of restriction on social and commercial activity to promote social distancing in an effort to slow the spread of the illness.
In accordance with State of California and local orders that include guidance on the definition and responsibilities of “essential businesses,” the Company, after closing down for one week, has re-opened its Torrance, California facility in order to provide service to public school customers in western states that have decided it is safer and in the best interest of both students and district employees to take delivery of school furniture immediately, while classes are not in session. The Company will be operating its Torrance manufacturing and distribution facility on a voluntary basis to give employees the flexibility to remain at home with children who are out of school or for other personal reasons as they deem necessary. Office employees and others who can work from home will continue to do so. Additional measures are being taken to insure adequate social distancing among employees performing essential on-site operations. Management estimates that the Torrance facility is currently staffed at approximately 50% of its normal level. The Company’s Conway, Arkansas facilities continue to operate at full capacity to support the many school districts in the eastern two-third of the country that are still taking delivery of school furniture in anticipation of re-starting classes within a few weeks or months. As with schools in western states, many districts serviced by the Company’s Conway facility have determined it is safer to accept deliveries while students and credentialed employees are not on campus. As with the Torrance facility, additional social distancing and sanitation protocols are in force at Conway and have been for the past few weeks.
While we are not able to estimate the full impact of the COVID-19 outbreak on our financial condition and results of operations, we expect that this situation will have an adverse impact on the Company’s results of operations for the first quarter of fiscal 2021. Should these conditions persist for a prolonged period of time, this may have an adverse impact on our fiscal 2021 financial results.