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Supplier Agreement
12 Months Ended
Jan. 30, 2016
Commitments and Contingencies Disclosure [Abstract]  
Supplier Agreement
Supplier Agreement

On February 2, 2015, we revised and renewed a master sourcing agreement (“Supplier Agreement”) with one of our suppliers. Under the ten-year agreement, we received an advance volume purchase discount equivalent to approximately $1.75 million per annum throughout the life of the Supplier Agreement, or a total cash receipt of $17.5 million, which was recorded as a liability, in return for a commitment of meeting certain minimum thresholds. The Supplier Agreement requires us to meet an annual purchase minimum threshold that approximates 29% of our fiscal 2015 consolidated cost of sales. Should we fail to meet the annual purchase minimum thresholds, we would be required to make a shortfall payment to the supplier based on a scaled percentage of the applicable annual purchase minimum shortfall during the applicable period. If we exceed certain minimum purchase thresholds, we would have an opportunity to receive additional advance volume purchase discounts. We have exceeded the annual purchase minimum for fiscal 2015.

On April 19, 2016, we amended and restated the Supplier Agreement. This amendment decreased the annual purchase commitment and removed the opportunity to receive additional purchase discounts. See Note 20, Subsequent Events.

In connection with the Supplier Agreement, we earned $3.8 million in rebates which reduced our liability from $17.5 million to $13.7 million, of which $3.5 million is classified in accrued expenses as of January 30, 2016. This liability is amortized upon receipt of merchandise.