SUBSEQUENT EVENTS

12 Months Ended

Dec. 29, 2012

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 25: SUBSEQUENT EVENTS

        On January 22, 2013, a holder of $11.2 million aggregate principal amount of the Convertible Notes converted all of such outstanding Convertible Notes into 3,171,670 shares of the Company's common stock. The Company paid accrued interest on the holder's Convertible Notes through the settlement date in cash.

        In connection with the January 31, 2013 expiration of an agreement with Li & Fung to provide distribution services in the US, the Company has discontinued the migration of its distribution function to Li & Fung and has decided to continue to utilize the Ohio Facility for such function. On February 5, 2013, the Company, which operated its Ohio Facility with an extended collective bargaining agreement, entered into a contract with a third-party facility operations management company to provide distribution operations services at the Ohio Facility with a variable cost structure. The third-party facility operations management company has informed the Company that it intends to employ the Company's prior employees at the facility. The Company has notified the employees covered by the CBA of the completion of layoffs on March 31, 2013, at which time the Agreement and CBA terminate.