4. RESTRUCTURING AND ASSET SALES

Restructuring

2023 Restructuring Plan

In the first quarter of 2025, the Company completed the 2023 Restructuring Plan and incurred approximately $362 of restructuring charges, which were primarily cash charges and recorded within cost of goods sold on the consolidated statement of operations during the year ended December 31, 2025. The remaining accrual balance of $103 as of December 31, 2024 was settled during the three months ended March 31, 2025, and there is no remaining accrual balance. Total costs incurred relating to the 2023 Restructuring Plan were (i) $9,737 of non-cash charges relating primarily to inventory markdowns, and (ii) $2,034 of cash charges relating primarily to the consolidation of U.S. manufacturing facilities. Restructuring actions in the 2023 Restructuring Plan were primarily U.S. manufacturing facility consolidations, in particular with respect to production of certain durable equipment products. Restructuring activities included termination and disposal costs associated with inventory, facilities, and headcount reductions, and non-cash charges consisting of fixed asset and inventory write-downs. 

2025 Restructuring Plan

In the second quarter of 2025, the Company initiated a restructuring plan (the "2025 Restructuring Plan") to reduce its product portfolio and operational footprint to decrease costs and improve efficiency. The 2025 Restructuring Plan actions entail (i) eliminating a significant portion of the Company's product portfolio, primarily underperforming distributed brands, to improve supply chain and operational focus, (ii) further reductions in the distribution center network and manufacturing footprint including inventory reductions, and (iii) corresponding headcount reductions.

The Company incurred the following estimated restructuring costs for the 2025 Restructuring Plan during the three and six months ended June 30, 2026:

Non-cash charges for the three and six months ended June 30, 2026 were primarily associated with the write-down of certain ROU assets which were primarily recorded in SG&A and inventory write-downs which were primarily recorded in cost of goods sold on the condensed consolidated statements of operations. Cash charges were primarily comprised of costs incurred to relocate and terminate certain facilities.

Total costs relating to the 2025 Restructuring Plan incurred since its inception through  June 30, 2026 were (i) $7,535 of non-cash charges comprised primarily of inventory markdowns and the write-down of certain ROU assets, and (ii) $3,564 of cash charges comprised primarily of costs incurred to relocate and terminate certain facilities.

The following tables present the activity in accrued expenses and other current liabilities for restructuring costs related to the 2025 Restructuring Plan for the three and six months ended June 30, 2026:

The Company does not anticipate the 2025 Restructuring Plan and related actions will result in material additional restructuring charges. The amounts the Company will ultimately expend could differ from these estimates.

Asset Sales

Goshen:

During the three months ended  June 30, 2026, the Company sold approximately 38 acres of the 120 acres of excess owned land at the Goshen, New York location. The sale price less costs to sell, in the amount of $1,415, was less than the net carrying value of the property, plant and equipment, and the Company recorded a $77 loss in SG&A during the three and six months ended June 30, 2026.