Lands' End Japan Closing

6 Months Ended

Jul. 28, 2023

Restructuring and Related Activities [Abstract]

Lands' End Japan Closing

NOTE 9. LANDS’ END JAPAN CLOSING

In July 2022, the Board of Directors approved a plan to cease operations of Lands’ End Japan KK, a subsidiary of Lands’ End, Inc. (“Lands’ End Japan”) by the end of Fiscal 2022. The dissolution of Lands’ End Japan was authorized and approved on January 31, 2023. Lands’ End Japan operations were reported in the Japan eCommerce operating segment in Fiscal 2022 and prior. For a discussion of this operating segment, see Note 13, Segment Reporting. The closing and subsequent disposal of the assets did not represent a strategic shift with a major effect on the consolidated financial condition. Accordingly, the closing of Lands’ End Japan was not presented in the Condensed Consolidated Financial Statements as discontinued operations.

In Third Quarter 2022, the Company commenced recording approximately $3.9 million one-time closing costs for employee severance and benefit costs, early termination and restoration costs of leased facilities and contract cancellation and other costs. During the 26 weeks ended July 28, 2023, the Company recognized one-time closing costs for contract cancellation and other costs of approximately $0.1 million reported in Other operating expense, net in the Condensed Consolidated Statement of Operations. As of July 28, 2023 the remaining balance of accrued closing costs related to Lands’ End Japan was approximately $45 thousand and is included in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets.