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Note 6 - Credit Facility
6 Months Ended
Jun. 29, 2013
Line of Credit Facility, Description [Abstract]  
Line of Credit Facility, Description

Note 6 – Credit Facility


The Company has a $50.0 million asset based revolving credit facility, (referred to as the “Credit Facility”) with Wells Fargo Capital Finance, LLC. The Credit Facility matures on October 28, 2014, and is secured by substantially all assets of the Company and each of its domestic subsidiaries with the exception of internationally held inventory. The Credit Facility is designed to provide working capital and letters of credit that will be used primarily for the purchase and importation of inventory and for general corporate purposes.


June 29, 2013, borrowing availability under the Credit Facility was approximately $7.2 million, and there were no outstanding borrowings. Borrowing availability is calculated using only certain domestic assets and is net of outstanding letters of credit, which were approximately $4.3 million at June 29, 2013. The Company had approximately $2.5 million of cash at June 29, 2013 that is not included in the availability calculation.


On June 7, 2013, the Company entered into the third amendment “(Amendment”) to the Credit Facility in connection with the disposition of certain assets of scott james. (See Note 9 – Dispositions and Discontinued Operations) The Amendment, among other things, requires that the Company maintain at July 1, 2013 and all times thereafter, excess availability of no less than $5.0 million, and the Company’s fixed charge coverage ratio be at least 1.0 to 1.0 if its liquidity level falls below a predefined level. Had the amendment been in effect at June 29, 2013, the Company’s availability under the credit facility would have been $2.2 million compared to actual availability of $7.2 million.