Restructuring expenses

3 Months Ended

Sep. 27, 2025

Restructuring expenses

Restructuring expenses

13. Restructuring expenses

Fiscal 2026

During fiscal 2026, the Company incurred restructuring expenses primarily related to headcount reductions including from the planned closure of certain distribution centers intended to reduce future operating expenses. The following table presents the activity during the first quarter of fiscal 2026 related to the restructuring liabilities established during fiscal 2026:

	Severance		Other		Total
	(Thousands)
Fiscal 2026 restructuring expenses	$	1,644	$	(13)	$	1,631
Cash payments		(1,079)		—		(1,079)
Balance at September 27, 2025	$	565	$	(13)	$	552

Severance expense recorded in the first quarter of fiscal 2026 related to the reduction, or planned reduction, of approximately 50 employees, primarily in operations, distribution centers, and business support functions. The $1.6 million of restructuring expenses recorded in the first quarter of fiscal 2026 was related to EC. The Company expects the majority of the remaining amounts to be paid by the end of fiscal 2026.

Fiscal 2025

During fiscal 2025, the Company incurred restructuring expenses primarily related to severance of which $19.4 million remained unpaid at the end of fiscal 2025 and $15.0 million remained unpaid at the end of the first quarter of fiscal 2026. These remaining restructuring liabilities are expected to be paid by the end of fiscal 2026.