SUBSEQUENT EVENT

12 Months Ended

Feb. 03, 2018

SUBSEQUENT EVENT.

SUBSEQUENT EVENT

17. SUBSEQUENT EVENT

In March 2018, we completed our strategic review of the Aaron Brothers business and have adopted a plan to close all 94 full-size Aaron Brothers stores (the “Plan”) and reposition our Aaron Brothers brand as a store-within-a-store, providing custom framing services in all Michaels stores. We expect the closure process to be substantially completed by July 31, 2018. As a result, we expect the fiscal 2018 after-tax cost of implementing the Plan to be in the range of $37 million to $42 million, consisting primarily of costs associated with the termination of the remaining lease obligations, the write-off of fixed assets and employee-related expenses. In fiscal 2017, Aaron Brothers net sales totaled approximately $110 million and had no material impact on the Company’s operating income. The Plan does not meet the criteria for treatment as a discontinued operation.