Discontinued Operations

3 Months Ended

Apr. 30, 2011

Discontinued Operations [Abstract]

Discontinued Operations

7. Discontinued Operations

The Company’s discontinued operations include the Talbots Kids, Mens and U.K. businesses, all of which ceased operations in 2008, and the J. Jill business which was sold to Jill Acquisition LLC (the “Purchaser”) on July 2, 2009. The operating results of these businesses have been classified as discontinued operations for all periods presented, and the cash flows from discontinued operations have been separately presented in the condensed consolidated statements of cash flows.

The $0.2 million loss from discontinued operations for the thirteen weeks ended April 30, 2011 includes approximately $0.4 million of on-going lease and other liability adjustments related to the J. Jill, Talbots Kids and Mens businesses, partially off-set by $0.2 million of favorable adjustments to estimated lease liabilities, due to the settlement of one of the two remaining J. Jill store leases not assumed by the Purchaser in the sale of J. Jill. The $2.7 million income from discontinued operations for the thirteen weeks ended May 1, 2010 includes approximately $1.7 million of favorable adjustments to estimated lease liabilities, primarily due to the settlement of four of the J. Jill store leases not assumed by the Purchaser in the sale of J. Jill, approximately $0.9 million of favorable adjustments to other assets and approximately $0.2 million of income tax benefit, representing the incremental effect of tax benefits realized from adjustments to the disposal obligations of the J. Jill business. The loss from discontinued operations for the thirteen weeks ended April 30, 2011 reflects no income tax expense (benefit).

At January 29, 2011, the Company had remaining recorded lease-related liabilities from discontinued operations of $6.3 million. During the thirteen weeks ended April 30, 2011, the Company made cash payments of approximately $0.9 million, recorded other income due to favorable settlements of estimated lease liabilities of $0.2 million and recorded additional expense related to lease liability adjustments of $0.2 million, resulting in a total estimated remaining recorded liability of $5.4 million as of April 30, 2011. Of these liabilities, approximately $2.8 million is expected to be paid out within the next 12 months and is included within accrued liabilities as of April 30, 2011.