OLD MARKET CAPITAL Corp 8-K, filed Jul 18, 2022
OLD MARKET CAPITAL Corp (OMCC)
About this 8-K
OLD MARKET CAPITAL Corp filed this 8-K on July 18, 2022.
Items reported
- Item 2.05: Exit or restructuring costs
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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Item 2.05 Costs Associated with Exit or Disposal Activities.
The performance of some branches in the Nicholas Financial, Inc. (the “Company) network have consistently fallen short of management’s expectations during the 2022 Fiscal Year. As a result, on July 18, 2022, the Company announced the closure of eleven branches, which represented approximately 23% of its network, as of June 30, 2022. Consolidation of workforce associated with these activities impacted approximately 44 employees and represented 17% of Company workforce, as of June 30, 2022.
These consolidation activities were part of the senior management contemplated initiatives for the Fiscal Year 2023. The expected total charges are between $0.9 million and $1.0 million of cash expenditures and under $0.1 million of non-cash impairment charges associated with lease obligations. Specifically, the Company estimated approximately $42,000 for employee related costs and approximately $898,000 for lease obligations. The Company expects the majority of these charges will be recorded in the second quarter of Fiscal Year 2023. The estimates of charges could change as the Company plans evolve and become finalized.
Forward-Looking Information
This report contains various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on management’s current beliefs and assumptions, as well as information currently available to management. When used in this document, the words “anticipate”, “estimate”, “expect”, “will”, “may”, “plan,” “believe”, “intend” and similar expressions are intended to identify forward-looking statements. Such statements, including statements about the expected impact of exit and disposal activities, material impairments and Covid-19, are subject to certain risks, uncertainties and assumptions, including but not limited to the risk factors discussed under “Item 1A – Risk Factors” in our Annual Report on Form 10-K, and our other filings made with the U.S. Securities and Exchange Commission (“SEC”). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. All forward-looking statements included in this report are based on information available to the Company as of the date of filing, and the Company assumes no obligation to update any such forward-looking statement except as required by law.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, hereunto duly authorized.
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NICHOLAS FINANCIAL, INC. |
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(Registrant) |
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Date: July 18, 2022 |
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/s/ Michael Rost |
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Michael Rost |
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Interim Chief Executive Officer (Principal Financial Officer) |