v3.26.1
RESTRUCTURING CHARGES
12 Months Ended
May 29, 2026
RESTRUCTURING CHARGES  
RESTRUCTURING CHARGES

13. RESTRUCTURING CHARGES

 

In the fourth quarter of fiscal 2025, the Company initiated a restructuring plan to consolidate facilities and optimize cost structure in order to more effectively support the Company’s long-term strategic objectives. Restructuring charges relate to impairment of long-lived assets that will no longer be used in operations, including right-of-use assets and facility-related property, contract termination costs and facility exit-related costs. During fiscal year 2026, the Company entered into a lease termination agreement with the landlord, paid a termination fee of $0.2 million and was released from its remaining lease obligation. Consequently, the Company recognized a credit to the restructuring charge of $0.2 million during the period.

 

Separately, the Company implemented a workforce reduction to align resources with its business needs in fiscal year 2026. The Company recorded $0.2 million of restructuring charges, primarily related to employee termination benefits.

 

The following table presents restructuring charges included in the consolidated statements of operations:

 

 

 

May 29,

 

 

May 30,

 

(In thousands)

 

2026

 

 

2025

 

Asset impairments

 

$(104)

 

$584

 

Contract termination

 

 

(109)

 

 

188

 

Facility exit-related

 

 

-

 

 

 

92

 

Employee termination benefits

 

 

219

 

 

 

-

 

Total

 

$6

 

 

$864

 

 

There were no restructuring charges for the year ended May 31, 2024.

 

The Company recorded a restructuring liability of $0.2 million as of May 30, 2025, primarily related to contract termination costs, which was included as a component of accrued expenses and other current liabilities. There was no restructuring liability outstanding as of May 29, 2026.