Subsequent Event

6 Months Ended

Aug. 02, 2014

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

On August 18, 2014, we entered into an Employment Agreement with Julian R. Geiger pursuant to which he will serve as our Chief Executive Officer. The Employment Agreement, which has a three-year term, provides for an annual salary of $1.5 million and a special performance-based bonus. Mr. Geiger also received an award of options to purchase 2.0 million shares of our common stock. The agreement provides that Mr. Geiger will be nominated to serve on our Board of Directors at each annual meeting of the Company’s stockholders during the Term. Mr. Geiger, 69, previously served as the Company’s Chairman and Chief Executive Officer from August 1998 to February 2010, and thereafter continued to serve as Chairman of the Board and as a part-time advisor to the Company until February 2012. On May 23, 2014, in connection with our strategic transaction with Sycamore Partners (see Note 3) and the related issuance of the Series B Preferred Stock, par value $0.01 per share, Mr. Geiger was appointed to serve on the Board as a Series B holders designee.

The Board of Directors and Mr. Johnson have mutually agreed that Mr. Johnson will step down as Chief Executive Officer of the Company and will no longer serve as a member of the Board, effective as of August 18, 2014. Mr. Johnson will be entitled to receive his severance amounts, retirement plan payment, and other items pursuant to his employment agreement with the Company and the Company’s early retirement policy. We therefore estimate that we will record a charge of approximately $2.5 million during the third quarter of 2014, excluding any impact of settlement accounting related to the retirement plan payment.