secwatch / observer
8-K filed July 13, 2023, 7:59 PM ET ticker MEI CIK 0000065270
other material confidence high sentiment negative materiality 0.65

METHODE ELECTRONICS INC (MEI): restructuring charge — Methode Electronics discontinues Dabir Surfaces; expects $1.5–$3.5M pre-tax charge in FY2024

METHODE ELECTRONICS INC

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

METHODE ELECTRONICS INC announced a restructuring with charges of pre-tax cash charges of $0.5 million related to severance costs and non-cash charges of approximately $1.0 million to $3.0 million affecting Dabir Surfaces, Inc..

Type
restructuring
Charge
pre-tax cash charges of $0.5 million related to severance costs and non-cash charges of approximately $1.0 million to $3.0 million
Affected area
Dabir Surfaces, Inc.
Exact text from the filing
On July 5, 2023, Methode Electronics, Inc. (the “Company”) made the decision to initiate the discontinuation of its Dabir Surfaces, Inc. (“Dabir”) business. The Company is executing a wind down process of the Dabir business which is expected to be completed by approximately the end of fiscal 2024 in accordance with contractual and regulatory commitments. The Company communicated this decision to affected employees on July 11, 2023. The Company currently expects to incur pre-tax cash charges of $0.5 million related to severance costs and non-cash charges of approximately $1.0 million to $3.0 million related to asset impairments, with most of these costs expected to be recognized by the end of its second quarter of fiscal 2024.
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Source: SEC EDGAR
accession 0000950170-23-032873
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