Restructuring And Other Charges

12 Months Ended

Sep. 30, 2011

Restructuring And Other Charges [Abstract]

Restructuring And Other Charges

7. RESTRUCTURING AND OTHER CHARGES

The Company implemented a significant restructuring and cost reduction program, which commenced in July 2008, with the objectives of streamlining its merchandise brands and store nameplates, continuing to improve and simplify critical processes and continuing to reduce its expense structure. The Company completed the planned activities of these initiatives in fiscal 2010. The Company incurred $3,884,000 of pretax expense substantially related to these initiatives in fiscal 2010, primarily for consulting services, and incurred pretax expense of $1,557,000 from these initiatives in fiscal 2009, primarily for severance and related benefits, and consulting services.

A summary of the charges incurred and reserves recorded in connection with the restructuring, cost reduction and other initiatives during fiscal 2011, 2010 and 2009 is as follows (in thousands):

	Balance Accrued September 30, 2010		Year Ended September 30, 2011					Balance Accrued September 30, 2011		Cumulative Charges Incurred to September 30, 2011
			Charges Incurred		Payments/ Adjustments
Severance and related benefits	$	159	$	—	$	(159	)	$	—	$	1,371
Accelerated depreciation of store signage		—		—		—			—		373
Cost reduction and other initiatives		106		—		(106	)		—		4,633
Total	$	265	$	—	$	(265	)	$	—	$	6,377
	Balance Accrued September 30, 2009		Year Ended September 30, 2010					Balance Accrued September 30, 2010
			Charges Incurred		Payments/ Adjustments
Severance and related benefits	$	37	$	323	$	(201	)	$	159
Cost reduction and other initiatives		638		3,561		(4,093	)		106
Total	$	675	$	3,884	$	(4,294	)	$	265
	Balance Accrued September 30, 2008		Year Ended September 30, 2009					Balance Accrued September 30, 2009
			Charges Incurred		Payments/ Adjustments
Severance and related benefits	$	224	$	357	$	(544	)	$	37
Accelerated depreciation of store signage		—		128		(128	)(1)		—
Cost reduction and other initiatives		—		1,072		(434	)		638
Total	$	224	$	1,557	$	(1,106	)	$	675

(1) Adjustment to reduce net book value of associated property, plant and equipment.

After his retirement on September 30, 2008, Dan Matthias, the Company's former Chief Executive Officer ("Former CEO"), agreed to continue to serve the Company as a director and as non-executive Chairman of the Board and agreed to remain available to the Company in an advisory capacity through September 2012. For these services, the Company agreed to pay the Former CEO an annual retainer of $200,000 through September 2012. In November 2009, the Former CEO entered into a letter agreement with the Company, which confirmed that he would not seek reelection to the Board (and, therefore, would no longer serve as the Company's non-executive Chairman of the Board) after the expiration of his term in January 2010. The letter agreement did not change the terms of payment under the annual retainer for advisory services, however the Company incurred a pretax charge of $585,000, representing the amount due for the remaining term of the arrangement, in fiscal 2010.

In connection with the retirement of Rebecca Matthias, the Company's President and Chief Creative Officer, at the end of fiscal 2010, the Company incurred a pretax charge of $888,000 in fiscal 2010. The charge reflects benefit costs related to an amendment to the executive's supplemental retirement agreement with the Company (see Notes 18 and 19).

In April 2011, the Company announced the hiring of Chris Daniel as the Company's President effective June 1, 2011. In connection with the search and hiring of a new President, the Company incurred pretax charges of $193,000 in fiscal 2011 for relocation costs, and $301,000 in fiscal 2010, primarily related to executive recruiting costs.