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(11)
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Restructuring and Other Charges, Net of Gains
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Restructuring and other charges, net of gains, were as follows (in thousands):
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Fiscal Year Ended June 30,
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|
| |
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2025
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|
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2024
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|
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Gain on sale-leaseback transaction(1)
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|
$ |
(218 |
) |
|
$ |
(2,620 |
) |
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Orleans, Vermont flood(2)
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|
|
92 |
|
|
|
2,243 |
|
|
Severance and other charges(3)
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|
|
469 |
|
|
|
300 |
|
|
Total Restructuring and other charges, net of gains
|
|
$ |
343 |
|
|
$ |
(77 |
) |
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(1)
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On August 1, 2022, we completed a sale-leaseback transaction with an independent third party for the land, building and related fixed assets of a retail design center which resulted in a deferred gain of $5.2 million to be amortized over the term of the operating lease agreement which expired on July 31, 2024.
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(2)
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In July 2023, our wood furniture manufacturing operations located in Orleans, VT sustained damage from flooding of a nearby river. Total losses incurred during fiscal 2024 were $2.2 million, net of insurance recoveries and grant proceeds. An additional loss of $0.1 million was recorded during fiscal 2025 due to repairs completed on equipment that was previously damaged during the flood.
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(3)
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Included within severance and other charges during fiscal 2025 was $0.1 million from a fire within our Vermont sawmill. The temporary disruption caused by the June 2025 fire did not have a material impact on our operations as the facility resumed operations by early July. Losses incurred were from the disposal of damaged inventory, inoperable equipment from fire damage, facility cleanup and restoration. We are working through insurance to recover a portion of our losses incurred and have recorded a $0.1 million reserve at June 30, 2025.
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Restructuring payments during fiscal 2025 were $0.6 million, which were primarily for severance. The restructuring balance at June 30, 2025 was $0.2 million and is anticipated to be paid during fiscal 2026.
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