DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2016

Discontinued Operations

DISCONTINUED OPERATIONS

NOTE 17 — DISCONTINUED OPERATIONS

On February 29, 2016, we completed the closure of 14 of our Joe’s® brand retail stores.  In accordance with ASC 205-20, Presentation of Financial Statements – Discontinued Operations, the results of operations of our former Joe’s Business are reported as discontinued operations in the accompanying unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2016 because those operations were disposed of as of March 31, 2016.  Due to the timing of the RG Merger, there were no discontinued operations prior to the three months ended March 31, 2015 or six months ended June 30, 2015.  The operations and cash flows of the 14 Joe’s® brand retail stores that were part of the Joe’s Business have been eliminated from the ongoing operations of the Company since the Company does not have any continuing involvement in the operations of such retail stores that were closed after the disposal transaction.  There were no assets and liabilities from the discontinued operations at June 30, 2016.

The operating results of discontinued operations for the three and six months ended June 30, 2016 are as follows (in thousands):

	Three months ended June 30,		Six months ended June 30,
	2016		2016
Net sales from discontinued operations	$	—	$	1,208
Loss from discontinued operations before income tax		—		(1,286)
Income tax provision		—		—
Loss from discontinued operations	$	—	$	(1,286)