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Other Charges
9 Months Ended
Jun. 30, 2014
Other Charges

8.

OTHER CHARGES

In September 2013 the Company announced plans to relocate its corporate headquarters and distribution operations from Philadelphia, Pennsylvania to southern New Jersey. During the first nine months of fiscal 2014 the Company incurred $1,437,000 of charges related to the closure of its existing facilities and the preparation for occupancy of its new facilities.

On July 2, 2014 the Company made an announcement confirming its interest in a possible business combination with Mothercare plc and confirming the submission of two non-binding written proposals for a possible business combination, both of which had been rejected by the Board of Directors of Mothercare. This announcement was required by the UK Takeover Code in light of press speculation at the time regarding the Company’s interest in a possible combination with Mothercare, the shares of which are traded on the London Stock Exchange. The Board of Directors of Mothercare was unwilling to allow the Company to conduct customary due diligence and to engage in discussions regarding the Company’s proposal, and shareholders of Mothercare did not support the proposal. As a result, on July 25, 2014 the Company announced that it would not make an offer for Mothercare plc and withdrew its proposal for a possible combination of the businesses. During the first nine months of fiscal 2014 the Company incurred $770,000 of charges related to its proposal for a possible business combination.

A summary of the charges incurred in connection with the facilities relocations and proposed business combination is as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Nine Months Ended June 30,

 

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Facilities Relocations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accelerated depreciation and amortization expense

 

$

283

 

 

$

 

 

$

843

 

 

$

 

Pre-opening rent expense

 

 

361

 

 

 

 

 

 

481

 

 

 

 

Other

 

 

 

 

 

 

 

 

113

 

 

 

 

Total facilities relocations

 

 

644

 

 

 

 

 

 

1,437

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proposed Business Combination

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legal and other professional fees

 

 

770

 

 

 

 

 

 

770

 

 

 

 

Total other charges

 

$

1,414

 

 

$

 

 

$

2,207

 

 

$