During the fourth quarter of fiscal 2025, we announced the closure of two manufacturing facilities, our plant in Holly Ridge, North Carolina, and our plant in Atlanta, Georgia. In October 2025, during the first quarter of fiscal 2026, we subsequently announced the closure of a third manufacturing facility, our plant in Colton, California. In March 2026, during the second quarter of fiscal 2026, we made the decision to close a fourth facility, our manufacturing/distribution facility in New York, New York, which subsequently closed in our third fiscal quarter. Production from these facilities has been consolidated into various other facilities across our network, or it was selectively discontinued. This consolidation was enabled by investments we have made in our plants to modernize and expand capacity for our core products, as well as our investments made to build out our three regional distribution centers.

As a result of the plant closures, we recorded a net recovery of $(0.2) million in the three months ended June 27, 2026, and a net charge of $10.7 million in the nine months ended June 27, 2026. These costs are reported in the plant closure expenses (recoveries) item within the Operating expenses sections of the Consolidated Statements of Earnings. Included in the results in the three months ended June 27, 2026 are $0.3 million of charges that have resulted or will result in cash outflows, and $(0.5) million of net non-cash recoveries. Included in the results in the nine months ended June 27, 2026 are $6.2 million of charges that have resulted or will result in cash outflows, and $4.5 million of net non-cash charges. No plant closure expenses were recorded in the three or nine months ended June 28, 2025.

The manufacturing facility in Holly Ridge, NC produced handheld products for our Food Service and Retail Supermarket segments and ceased production on July 31, 2025. During the three months ended March 28, 2026, in connection with our plan to actively market and sell the building and land at Holly Ridge, NC, we reclassified $6.3 million of property, plant, and equipment, net, to assets held for sale. We then measured the assets held for sale at the lower of their carrying value or fair value less the estimated costs to sell, and recorded a pre-tax, non-cash impairment charge of $2.0 million during the three months ended March 28, 2026. The remaining $4.3 million of assets held for sale are still reported in the Prepaid expenses and other item, within current assets, on our Consolidated Balance Sheet as of June 27, 2026. We expect to be able to sell the building and land for fair value less the estimated costs to sell, within the next twelve months.

There were no plant closure costs for the Holly Ridge facility in the three months ended June 27, 2026. The closure costs for the facility totaled $3.4 million in the nine months ended June 27, 2026, including the $2.0 million impairment charge on assets held-for-sale noted above, and $1.2 million of other exit and disposal costs. These costs are reported in the plant closure expense (recoveries) item of the Consolidated Statements of Earnings.

The manufacturing facility in Atlanta, GA produced bakery and biscuit products for our Food Service and Retail Supermarket segments and ceased production on September 27, 2025. The closure costs for the facility totaled $0.1 million in the three months ended June 27, 2026, and related to inventory write-offs, and other exit and disposal costs. The closure costs for the facility totaled $4.4 million in the nine months ended June 27, 2026, including $2.1 million of other exit and disposal costs, $1.8 million of inventory write-offs, and $0.5 million of severance and benefits costs. These costs are reported in the plant closure expense (recoveries) item of the Consolidated Statements of Earnings.

The manufacturing facility in Colton, CA produced churro products for our Food Service and Retail Supermarket segments and ceased production in the first quarter of fiscal 2026. During the three months ended June 27, 2026, $(0.3) million of net plant closure related recoveries were recorded for the facility, primarily related to a reduced contractual obligation. The net closure costs for the facility totaled $1.8 million in the nine months ended June 27, 2026, including $1.4 million of severance and benefits costs and $0.4 million of other exit and disposal costs. These costs are reported in the plant closure expense (recoveries) item of the Consolidated Statements of Earnings.

The manufacturing and distribution facility in New York, NY produced and distributed soft pretzel products for our Food Service segment and ceased production during the third quarter of our fiscal 2026. During the three months ended June 27, 2026, no net plant closure costs were recorded for the facility, resulting from $0.2 million of other exit and disposals costs, offset by a $0.2 million recovery related to a reduced contractual obligation. The net closure costs for the facility totaled $1.1 million in the nine months ended June 27, 2026, including $0.7 million of right-of-use (“ROU”) asset and long-lived asset impairment charges and $0.2 million of severance and benefits costs and $0.4 million of other exit and disposal costs. These costs are reported in the plant closure expense (recoveries) item of the Consolidated Statements of Earnings.

The following table reflects our liability related to manufacturing and distribution facility closures as of June 27, 2026 (in thousands):