Note 1 - Basis of Presentation

6 Months Ended

Jun. 29, 2013

Disclosure Text Block [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Note 1 – Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Hampshire Group, Limited and its subsidiaries (the “Company” or “Hampshire”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and according to instructions from the United States Securities and Exchange Commission (“SEC”) for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K (“Form 10-K”) for the fiscal year ended December 31, 2012.

The information included herein is not necessarily indicative of the annual results that may be expected for the year ending December 31, 2013, but does reflect all adjustments (which are of a normal and recurring nature) considered, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results may differ from these estimates and assumptions. In addition, the Company’s revenues are subject to the seasonality of the apparel industry and may exhibit fluctuations in financial results for interim periods.

Discontinued Operations

On June 7, 2013, the Company sold certain assets of the scott james clothing brand and line. In 2011, the Company sold certain assets of its women’s businesses, Hampshire Designers, Inc. (“Hampshire Designers”) and Item-Eyes, Inc. (“Item-Eyes”). In accordance with GAAP, the financial position and results from operations for these businesses have been presented as discontinued operations. See Note 9 – Dispositions and Discontinued Operations.

Lease Litigation Settlement

On June 10, 2013, the Civil Court of the City of New York ruled that the Company was entitled to rent abatement for all but approximately $0.2 million of the $7.1 million claim by the receiver of the landlord of the Company’s New York Office lease. The Company had accrued approximately $6.3 million for disputed unpaid rent and reversed approximately $6.1 million of the accrual in the quarter ended June 29, 2013, which is reflected in Lease litigation settlement on the Unaudited Condensed Consolidated Statements of Operations. See Note 7 - Commitments and Contingencies.

Subsequent Events

The Company has evaluated subsequent events from the date of the unaudited condensed consolidated balance sheet through the date that the financial statements were issued. During this period, no material recognizable subsequent events were identified, except as disclosed in Note 2 – Acquisitions, Note 8 – Taxes, Note 12 – Related Party Transactions and Note 13 - Stock Plan.

Recent Accounting Standards

No new accounting pronouncements, issued or effective during 2013, have had or are expected to have a significant impact on the Company’s consolidated financial statements.