Closure of Distribution Center

6 Months Ended

Jul. 30, 2011

Closure of Distribution Center

Closure of Distribution Center

5. Closure of Distribution Center

The Company closed its distribution center in Savannah, Georgia in June 2011.  A real estate broker has been engaged to sell the Savannah land and building; accordingly, the net book value of the related assets has been reclassified from property and equipment to assets held for sale in the July 30, 2011 condensed consolidated balance sheet.  The closure of the distribution center required the Company to test the asset for potential impairment.  We evaluated the fair value of the distribution center, including estimates by real estate brokers, and determined that estimated fair value is in excess of the $1.4 million net book value, therefore, no impairment charge is necessary.

In connection with the closure of the distribution center, the Company incurred $0.6 million of expenses, and such amount has been recorded in selling, general and administrative expenses within the condensed consolidated statements of operations for the twenty-six and thirteen week periods ended July 30, 2011.