Annual report pursuant to Section 13 and 15(d)

Restructuring Costs

v3.21.1
Restructuring Costs
12 Months Ended
Jan. 30, 2021
Restructuring Costs [Abstract]  
Restructuring Costs

(20) Restructuring Costs

During fiscal 2020, the Company implemented and completed a cost optimization initiative, which eliminated positions across the Company’s ShopHQ segment, the majority of which were in customer service, order fulfillment and television production. As a result of the fiscal 2020 cost optimization initiative, the Company recorded restructuring charges of $715,000 for the year ended January 30, 2021, which relate primarily to severance and other incremental costs associated with the consolidation and elimination of positions across the Company's ShopHQ segment. These initiatives were substantially completed as of January 30, 2021, with related cash payments expected to continue through the second quarter of fiscal 2021.

During fiscal 2019, the Company implemented cost optimization initiatives to streamline our organizational structure and realign our cost base with sales declines. During the second quarter of 2019, the Company implemented and completed a cost optimization initiative, which reduced and flattened the Company’s organizational structure, closed the New York office, closed the Los Angeles office and related product development initiatives, and reduced corporate overhead costs. The second quarter 2019 initiative included the elimination of 11 senior executive roles and a 20% reduction to the Company’s non-variable workforce. During the third and fourth quarter of fiscal 2019, the Company completed additional reductions in the Company’s organizational structure to manage the Company’s costs. As a result of the fiscal 2019 cost optimization initiatives, the Company recorded restructuring charges of $9,166,000 for the year ended February 1, 2020, which relate primarily to severance and other incremental costs associated with the consolidation and elimination of positions across the Company. Both of the Company’s operating segments were affected by these actions including $8,228,000 related to the ShopHQ segment and $938,000 related to the Emerging Businesses segment.

The following table summarizes the significant components and activity under the restructuring program for the year ended January 30, 2021:

    

Balance at

    

    

    

Balance at

February 1,

January 30,

2020

Charges

Cash Payments

2021

Severance

$

3,133,000

$

642,000

$

(3,733,000)

$

42,000

Other incremental costs

 

127,000

 

73,000

 

(195,000)

 

5,000

$

3,260,000

$

715,000

$

(3,928,000)

$

47,000

The liability for restructuring accruals is included in current accrued liabilities within the accompanying consolidated balance sheet.