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Other Charges
3 Months Ended
May 04, 2019
Other Charges Related To Management And Organizational Changes And Proxy Solicitation [Abstract]  
Other Charges

11.

OTHER CHARGES

 

Over the last several years the Company has engaged in a series of management and organizational changes and, in connection therewith, retained consulting firms to review its costs and business strategy associated with such management and organizational changes.  The Company’s Board of Directors authorized changes to the Company’s chief executive function, including, most recently, the May 23, 2018 appointment of Marla Ryan as Chief Executive Officer, who replaced Melissa Payner-Gregor who had served as interim Chief Executive Officer since January 2, 2018. Ronald Masciantonio, the Company’s Chief Administrative Officer, resigned from his position on June 4, 2018.  David Stern, the Company’s former Chief Financial Officer, departed the Company effective at the close of business on August 10, 2018. On January 19, 2019, Dave J. Helkey was appointed Chief Operating Officer and Chief Financial Officer. The Company also paid one-time retention bonuses with service conditions to certain key management personnel which are being recorded over the service period, while reducing its overall headcount to create a more efficient and effective operating structure. During the three months ended May 4, 2019 and May 5, 2018, the Company incurred $662,000 and $264,000, respectively, of charges related to these management and organizational changes.

 

In the first quarter of fiscal 2018, the Company received notification from a stockholder group of their intent to nominate a slate of alternative nominees for election to the Company’s Board of Directors at the Annual Meeting of Stockholders that was held on May 23, 2018 (the “Proxy Solicitation”).  At the 2018 Annual Meeting of Stockholders the Company’s stockholders replaced the incumbent board in its entirety and elected Holly N. Alden, Christopher B. Morgan, Marla A Ryan and Anne-Charlotte Windal as the Company’s new Board of Directors. During the three months ended May 5, 2018, the Company incurred $886,000 of charges related to the Proxy Solicitation. 

 

A summary of charges incurred in connection with management and organizational changes and the proxy solicitation is as follows (in thousands):

 

 

 

Three Months Ended

 

 

 

May 4, 2019

 

 

May 5, 2018

 

 

 

 

 

 

 

 

 

 

Management and organizational changes

 

$

662

 

 

$

264

 

Proxy solicitation

 

 

 

 

 

886

 

Total other charges

 

$

662

 

 

$

1,150