Subsequent Events

The Company has closed two retail stores in July 2013 and intends to close an additional retail store in August. One time charges associated with these actions are currently anticipated to be approximately $8.1 million, pretax, during the third quarter of 2013. This amount includes approximately $0.1 million for workforce reduction costs, $6.5 million for net estimated lease termination costs (present value of contractual gross lease payments net of estimated sublease rental income, or settlement amount) and $1.5 million for fixed assets write offs. The Company anticipates that the workforce reduction costs will be cash expenditures during the third quarter of 2013 and the net lease termination costs will be net cash expenditures over the remaining terms of the leases unless settlements are reached with the lessors.

On August 5, 2013 the Company's Board of Directors approved the expansion of the administrative and back office services that its recently opened European shared services center will offer to certain of the Company's operating subsidiaries in Europe. As a result of this expansion the Company anticipates incurring workforce reduction and exit costs and startup costs of approximately $11.0 million during the second half of 2013 and through the end of 2014. This amount includes approximately $9.0 million for workforce reduction costs and approximately $2.0 million in other tax, legal and recruiting fees. The Company anticipates that all of these costs will result in future cash expenditures which will be incurred during the second half of 2013 and through the end of 2014. Not all of the components of this expansion initiative are finalized, and the actual costs and specific timing of the costs could change from the Company's estimate as the scope of the initiative and underlying assumptions may change.