Commitments and Contingencies

6 Months Ended

Aug. 03, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

17. COMMITMENTS AND CONTINGENCIES

From time to time, the Company is named as a defendant in legal actions arising from normal business activities. Litigation is inherently unpredictable, and although the amount of any liability that could arise with respect to currently pending actions cannot be accurately predicted, the Company does not believe that the resolution of any pending action will have a material adverse effect on its financial position, results of operations or liquidity.

On September 16, 2019, we adopted a plan to close approximately 50 underperforming stores as their leases expire over the next six months to reduce costs and better position the Company for operational profitability. In connection with the store closures, the Company expects to incur estimated pre-tax charges ranging from an aggregate of $0.7 million to $1.0 million, including costs associated with lease terminations, asset impairments and employee severance.

In January 2019, a ship carrying five containers of Company merchandise experienced a fire while in transit to a domestic port.  The merchandise was subsequently received and inspected, and it was determined that three of the containers of merchandise were a total loss.  The Company insures merchandise in transit at average selling price and has received a payment for merchandise in the three damaged containers. The remaining two containers of merchandise are still in the process of being inspected. The Company believes that its insurance coverage is adequate to cover any potential loss, should such a loss occur.