Quarterly report pursuant to Section 13 or 15(d)

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3 Months Ended
May 02, 2020
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12. SUBSEQUENT EVENT

Following the completion of a strategic review of our Darice business in the United States, on May 14, 2020, the Company adopted a plan to close the Darice wholesale operations (the “Plan”). The Company expects the closure process to be substantially completed by November 30, 2020. As a result, the Company expects the fiscal 2020 after-tax cost of implementing the Plan to be approximately $46 million to $52 million, consisting primarily of costs associated with the liquidation of inventory, employee-related expenses and costs associated with the write-off of intangible assets. In fiscal 2019, Darice’s net sales totaled approximately $80 million and they had no material impact on the Company’s operating income.