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DIXIE GROUP INC FILES (8-K) Disclosing Entry into a Material Definitive Agreement, Costs Associated with Exit or Disposal Activities, Financial Statements and Exhibits

January 21, 2014

Item 1.01 Entry into a Material Definitive Agreement. Effective January 20, 2014 , the Company and certain of its subsidiaries entered into that certain Seventh Amendment to Credit Agreement, with respect to the Existing Credit Agreement dated as of September 13, 2011 (and certain other loan documents) (as defined in the Seventh Amendment to Wells Fargo Capital Finance Credit Agreement or as otherwise identified therein). The amendment is intended to increase the amount of "permitted purchase money indebtedness" (as defined in the agreement) to $40 million dollars . Item 2.05 Costs Associated with Exit or Disposal Activities On January 20, 2014 , the Board of Directors approved a 2014 Warehousing/Distribution/Manufacturing Restructuring Plan intended to align the Company's warehousing, distribution and manufacturing to support its growth and manufacturing strategy. The plan is intended to create a better cost structure and improve distribution capabilities and customer service. The key element and first major step of this plan is the leasing and occupancy of a 290,000 square foot finished goods warehouse, cut-order and distribution facility in Adairsville, Georgia , such lease and occupancy to commence as of May 1, 2014 . The Company expects the plan to be substantially completed in the second quarter of the fiscal year ending December 26, 2015 . The Company currently expects the implementation of this plan will result in total restructuring expenses of approximately $2.4 million , with approximately $1.4 million such expenses during the fiscal year ending December 27, 2014 and approximately $1.0 million such expenses during the fiscal year ending December 26, 2015 , consisting of inventory expenses, moving and relocation expenses, information technology expenses and expenses relating to conversion and realignment of equipment. Item 9.01 Financial Statements and Exhibits. (d) Exhibits 10.01 Seventh Amendment to Credit Agreement dated as of January 20, 2014 , by and among The Dixie Group, Inc. certain of its subsidiaries and Wells Fargo Capital Finance, LLC , as Agent and the persons identified as Lenders therein. FORWARD-LOOKING INFORMATION This Report contains statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include the use of terms or phrases that include such terms as "expects," "estimates," "projects," "believes," "anticipates," "intends," and similar terms and phrases. Such forward looking statements relate to, among other matters, our future financial performance, business prospects, growth strategies or liquidity. The following important factors may affect our future results and could cause those results to differ materially from our historical results; these factors include, the cost and availability of capital, raw material and transportation costs related to petroleum price levels, the cost and availability of energy supplies, the loss of a significant customer or group of customers, materially adverse changes in economic conditions generally in carpet, rug and floor covering markets we serve and other risks detailed from time to time in our filings with the Securities and Exchange Commission . --------------------------------------------------------------------------------


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Source: Edgar Glimpses


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