Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 28, 2013 | Nov. 12, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'CACHE INC | ' |
Entity Central Index Key | '0000350199 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 28-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-28 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 21,551,171 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 29, 2012 |
Current assets: | ' | ' | ' |
Cash and equivalents | $4,363,000 | $12,360,000 | $10,374,000 |
Marketable securities | ' | 3,013,000 | 3,009,000 |
Certificates of deposit - restricted | 1,750,000 | 3,000,000 | 3,000,000 |
Receivables, net | 2,610,000 | 2,200,000 | 2,294,000 |
Income tax receivable | 49,000 | 184,000 | 245,000 |
Inventories, net | 21,588,000 | 21,246,000 | 23,806,000 |
Prepaid expenses and other current assets | 1,354,000 | 2,224,000 | 2,068,000 |
Total current assets | 31,714,000 | 44,227,000 | 44,796,000 |
Equipment and leasehold improvements, net | 19,814,000 | 20,177,000 | 20,522,000 |
Intangible assets, net | 102,000 | 102,000 | 102,000 |
Other assets | 1,449,000 | 10,119,000 | 10,708,000 |
Total assets | 53,079,000 | 74,625,000 | 76,128,000 |
Current liabilities: | ' | ' | ' |
Accounts payable | 8,981,000 | 12,397,000 | 10,974,000 |
Accrued compensation | 3,223,000 | 2,615,000 | 1,420,000 |
Accrued liabilities | 10,374,000 | 11,795,000 | 9,609,000 |
Total current liabilities | 22,578,000 | 26,807,000 | 22,003,000 |
Other liabilities | 9,285,000 | 8,777,000 | 9,628,000 |
Commitments and contingencies | ' | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' | ' |
Common stock, par value $.01; authorized, 40,000,000 shares; issued 25,213,370, 17,093,788 and 17,093,788 | 252,000 | 171,000 | 171,000 |
Additional paid-in capital | 60,489,000 | 48,735,000 | 48,666,000 |
Retained earnings | 270,000 | 29,930,000 | 35,455,000 |
Treasury stock 3,682,199 shares, at cost | -39,795,000 | -39,795,000 | -39,795,000 |
Total stockholders' equity | 21,216,000 | 39,041,000 | 44,497,000 |
Total liabilities and stockholders' equity | $53,079,000 | $74,625,000 | $76,128,000 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 29, 2012 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 |
Common stock, authorized shares | 40,000,000 | 40,000,000 | 40,000,000 |
Common stock, issued shares | 25,213,370 | 17,093,788 | 17,093,788 |
Treasury stock, shares | 3,682,199 | 3,682,199 | 3,682,199 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' |
Net sales | $47,221,000 | $45,789,000 | $160,853,000 | $163,417,000 |
Cost of sales, including buying and occupancy | 31,409,000 | 31,128,000 | 107,770,000 | 100,176,000 |
Gross profit | 15,812,000 | 14,661,000 | 53,083,000 | 63,241,000 |
Expenses: | ' | ' | ' | ' |
Store operating expenses | 17,894,000 | 18,268,000 | 54,729,000 | 57,727,000 |
General and administrative expenses | 5,237,000 | 4,275,000 | 14,652,000 | 13,466,000 |
Employee separation charges | 638,000 | 227,000 | 3,092,000 | 503,000 |
Total expenses | 23,769,000 | 22,770,000 | 72,473,000 | 71,696,000 |
Operating loss | -7,957,000 | -8,109,000 | -19,390,000 | -8,455,000 |
Other expense (income): | ' | ' | ' | ' |
Amortization of deferred financing cost | 37,000 | ' | 37,000 | ' |
Interest income | -5,000 | -20,000 | -22,000 | -62,000 |
Total other expense (income), net | 32,000 | -20,000 | 15,000 | -62,000 |
Loss before income taxes | -7,989,000 | -8,089,000 | -19,405,000 | -8,393,000 |
Income tax provision (benefit) | 8,000 | -1,713,000 | 10,255,000 | -1,840,000 |
Net loss | ($7,997,000) | ($6,376,000) | ($29,660,000) | ($6,553,000) |
Basic loss per share (in dollars per share) | ($0.38) | ($0.49) | ($1.70) | ($0.51) |
Diluted loss per share (in dollars per share) | ($0.38) | ($0.49) | ($1.70) | ($0.51) |
Basic weighted average shares outstanding (in shares) | 21,090,000 | 12,892,000 | 17,450,000 | 12,882,000 |
Diluted weighted average shares outstanding (in shares) | 21,090,000 | 12,892,000 | 17,450,000 | 12,882,000 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 28, 2013 | Sep. 29, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($29,660,000) | ($6,553,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 5,148,000 | 5,285,000 |
Stock-based compensation | 502,000 | 230,000 |
Deferred income taxes | 10,201,000 | -1,905,000 |
Gift card breakage | -170,000 | -212,000 |
Amortization of deferred income for co-branded credit card | -330,000 | -858,000 |
Amortization of deferred rent | -1,019,000 | -1,656,000 |
Amortization of deferred financing costs | 37,000 | ' |
Change in assets and liabilities: | ' | ' |
Decrease (increase) in receivables and income tax receivable | -275,000 | 836,000 |
Increase in inventories | -342,000 | -1,731,000 |
Decrease (increase) in prepaid expenses and other current assets | 385,000 | -399,000 |
Increase (decrease) in accounts payable | -3,416,000 | 1,409,000 |
Increase (decrease) in accrued liabilities, accrued compensation and other liabilities | 1,371,000 | -760,000 |
Net cash used in operating activities | -17,568,000 | -6,314,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of marketable securities | -2,000,000 | -8,285,000 |
Maturities of marketable securities | 5,013,000 | 9,284,000 |
Proceeds from insurance recovery | ' | 190,000 |
Certificates of deposit - restricted | 1,250,000 | ' |
Purchase of equipment and leasehold improvements | -5,124,000 | -7,010,000 |
Net cash used in investing activities | -861,000 | -5,821,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from the issuance of common stock | 13,419,000 | ' |
Payment of issuance costs | -2,046,000 | ' |
Payments of deferred financing costs | -941,000 | ' |
Net cash provided by financing activities | 10,432,000 | ' |
Net decrease in cash and equivalents | -7,997,000 | -12,135,000 |
Cash and equivalents, at beginning of period | 12,360,000 | 22,509,000 |
Cash and equivalents, at end of period | 4,363,000 | 10,374,000 |
Supplemental disclosure of cash flow information: | ' | ' |
Income taxes paid | 115,000 | 209,000 |
Supplemental disclosure of non-cash investing and financing activities: | ' | ' |
Accrued fixed asset additions | 425,000 | 59,000 |
Accrued issuance costs | 46,000 | ' |
Accrued deferred financing costs | 136,000 | ' |
Prepaid stock-based compensation | $6,000 | $24,000 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 28, 2013 | |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | ' |
1. BASIS OF PRESENTATION | |
References to the “Company,” “we,” “us,” or “our” mean Cache, Inc., together with its wholly-owned subsidiaries, except as expressly indicated or unless the context otherwise requires. Under the trade name “Cache”, we operated 250 women’s apparel specialty stores, as of September 28, 2013. | |
The following unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. The accompanying condensed consolidated financial statements include all known adjustments necessary for a fair presentation of the results of the interim periods as required by accounting principles generally accepted in the United States. These adjustments consist primarily of normal recurring accruals and estimates that impact the carrying value of assets and liabilities. Actual results may materially differ from these estimates. | |
These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 29, 2012, which are included in the Company’s Annual Report on Form 10-K with respect to such period filed with the Securities and Exchange Commission. All significant intercompany accounts and transactions have been eliminated. The December 29, 2012 condensed consolidated balance sheet amounts are derived from the Company’s audited consolidated financial statements. | |
The Company’s fiscal year (“fiscal year” or “fiscal”) refers to the applicable 52-or 53-week period. The years ended December 29, 2012 (“fiscal 2012”) and December 28, 2013 (“fiscal 2013”) are each 52-week years. | |
Reclassifications related to Employee Separation Charges have been made to fiscal 2012 Financial Statements to conform to fiscal 2013 presentation. | |
STOCK_BASED_COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended | ||||
Sep. 28, 2013 | |||||
STOCK BASED COMPENSATION | ' | ||||
STOCK BASED COMPENSATION | ' | ||||
2. STOCK BASED COMPENSATION | |||||
Stock-based compensation expense for all stock-based awards programs, including grants of stock options, is recorded in accordance with “Compensation-Stock Compensation”, Topic 718 of the Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”). During the 39- and 13-week periods ended September 28, 2013, the Company recognized approximately $502,000 and $288,000, respectively, in stock-based compensation expense, and for the same periods ended September 29, 2012, the Company recognized approximately $230,000 and $68,000, respectively. The grant date fair value for stock options is calculated using the Black-Scholes option valuation model. | |||||
On February 5, 2013, the Company granted Jay Margolis (its Chief Executive Officer and Chairman of the Board) time-based stock options to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $3.34 which had a weighted average grant date fair value of $1.15. These options vest in equal installments on the first, second and third anniversary of the grant date. The Company granted no stock options during the 39- and 13-week periods ended September 29, 2012. No excess tax benefits were recognized from the exercise of stock options during the 39- week periods ended September 28, 2013 and September 29, 2012. | |||||
The following assumptions were used during the 39-week period ended September 28, 2013: | |||||
Expected dividend rate | $ | 0 | |||
Expected volatility | 50.72 | % | |||
Risk free interest rate | 0.41 | % | |||
Expected lives (years) | 3 | ||||
During the first quarter of fiscal 2013, 40,000 shares of the Company’s common stock were issued for services to its board members. The total fair value of the issued common stock was approximately $94,000, of which approximately $89,000 and $18,000 were included in stock-based compensation expense for the 39- and 13-week periods ended September 28, 2013, respectively. The remaining cost is expected to be recognized over the remainder of fiscal 2013. Comparatively, during the first quarter of fiscal 2012, 14,000 shares of the Company’s common stock were issued for services to its board members. The total fair value of the issued common stock was approximately $95,000, of which approximately $71,000 and $23,000 were included in stock-based compensation expense for the 39- and 13-week periods ended September 29, 2012, respectively. | |||||
During the 39- and 13-week periods ended September 28, 2013, the Company granted restricted stock awards representing 370,000 and 115,000 shares of the Company’s common stock, which had a weighted-average grant date fair value of $4.28 and $5.33 per share, respectively. A portion of these restricted stock awards will contingently vest over a three-year period, based on the Company meeting performance goals, and a portion will vest over the requisite service period. Comparatively, during the 39- week period ended September 29, 2012, the Company granted 12,000 shares of restricted stock awards of the Company’s common stock, which had a weighted average grant date fair value of $6.70. These restricted shares will contingently vest over a three-year period, based on the Company meeting performance goals. During the 13- week period ended September 29, 2012, the Company granted no restricted stock awards of the Company’s common stock. | |||||
BASIC_AND_DILUTED_EARNINGS_PER
BASIC AND DILUTED EARNINGS PER SHARE | 9 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
BASIC AND DILUTED EARNINGS PER SHARE | ' | |||||||||||||
BASIC AND DILUTED EARNINGS PER SHARE | ' | |||||||||||||
3. BASIC AND DILUTED EARNINGS PER SHARE | ||||||||||||||
Basic loss per share has been computed based upon the weighted average of common shares outstanding. Diluted loss per share also includes the dilutive effect of potential common shares (dilutive stock options and unvested restricted stock awards) outstanding during the period. Loss per common share has been computed as follows: | ||||||||||||||
39-Weeks Ended | 13-Weeks Ended | |||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Net loss | $ | (29,660,000 | ) | $ | (6,553,000 | ) | $ | (7,997,000 | ) | $ | (6,376,000 | ) | ||
Basic weighted number of average shares outstanding | 17,450,000 | 12,882,000 | 21,090,000 | 12,892,000 | ||||||||||
Incremental shares from assumed issuances of stock options and restricted stock awards | — | — | — | — | ||||||||||
Diluted weighted average number of shares outstanding | 17,450,000 | 12,882,000 | 21,090,000 | 12,892,000 | ||||||||||
Net loss per share - Basic | $ | (1.70 | ) | $ | (0.51 | ) | $ | (0.38 | ) | $ | (0.49 | ) | ||
- Diluted | $ | (1.70 | ) | $ | (0.51 | ) | $ | (0.38 | ) | $ | (0.49 | ) | ||
The accompanying financial statements reflect for fiscal 2012 the issuance of all restricted stock awards as if issued on the original grant date. The Company previously had been issuing restricted stock awards only when the awards vested. This change in reporting had no effect on the Company’s financial statements except for the number of shares outstanding at September 29, 2012. | ||||||||||||||
Options and unvested restricted common shares totaling 1,483,444 and 1,176,675 were excluded from the computation of diluted loss per share for the 39- and 13- week periods ended September 28, 2013 and September 29, 2012 due to the net loss incurred by the Company. | ||||||||||||||
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 28, 2013 | |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
4. RECENT ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similiar Tax Loss, or a Tax Credit Carryforward Exists to clarify the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU is effective prospectively for fiscal years and interim periods within those years beginning after December 15, 2013. The Company early adopted this ASU and it did not have a material impact on its consolidated financial statements. | |
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU 2013-02 requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required to be reclassified in its entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about those amounts. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. For public entities, the amendments in ASU 2013-02 were effective prospectively for interim and annual reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on the Company’s consolidated financial statements. | |
In July 2012, the FASB issued ASU 2012-02, Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. ASU 2012-02 allows an entity to first assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. Under these amendments, an entity would not be required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines, based on qualitative assessment, that it is not more likely than not, the indefinite-lived intangible asset is impaired. The amendments include a number of events and circumstances for an entity to consider in conducting the qualitative assessment. The amendments were effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of ASU 2012-02 did not have a material impact on the Company’s consolidated financial statements. | |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended |
Sep. 28, 2013 | |
FAIR VALUE MEASUREMENT | ' |
FAIR VALUE MEASUREMENT | ' |
5. FAIRVALUE MEASUREMENT | |
“Fair Value Measurement”, Topic 820 of the FASB ASC, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Topic 820 of the FASB ASC establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows: | |
· Level 1 — Unadjusted quoted market prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |
· Level 2 — Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.) and inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |
· Level 3 — Unobservable inputs that reflect assumptions about what market participants would use in pricing assets or liabilities based on the best information available. | |
The Company classifies its short-term investments as held-to-maturity. Held-to-maturity securities are those securities in which the Company has the ability and intent to hold the securities until maturity. Because the Company’s held-to-maturity securities mature within one year of the purchase date, the securities are classified as short-term marketable securities. Held-to-maturity debt securities are recorded at amortized cost, adjusted for the amortization or accretion of premiums or discounts and such carrying values approximate fair value. | |
A decline in the market value of any held-to-maturity security below cost that is deemed to be other than temporary results in a reduction in carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. | |
“Financial Instruments”, Topic 825 of the FASB ASC, provides entities the option to measure many financial instruments and certain other items at fair value. Entities that choose the fair value option will recognize unrealized gains and losses on items for which the fair value option was elected in earnings at each subsequent reporting date. The Company has chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with Topic 825 of the FASB ASC. | |
The fair value of our marketable securities, which consist of certificates of deposits (maturing greater than 90 days and less than one year) were determined based upon Level 1 inputs, totaled $3.0 million as of December 29, 2012 and September 29, 2012. The Company had no marketable securities as of September 28, 2013. The Company noted small variances between the book value and fair value due to the remaining unamortized premiums. As a result, no impairment has occurred for the fiscal periods presented herein. Premiums and discounts are amortized or accreted over the life of the related held-to-maturity investments. Interest income is recognized when earned. | |
Fair Value of Financial Instruments | |
The carrying amounts of certificates of deposit, accounts receivable, accounts payable and accrued liabilities approximate their estimated fair values due to their short-term nature. | |
RECEIVABLES
RECEIVABLES | 9 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
RECEIVABLES | ' | ||||||||||
RECEIVABLES | ' | ||||||||||
6. RECEIVABLES | |||||||||||
September 28, | December 29, | September 29, | |||||||||
2013 | 2012 | 2012 | |||||||||
Construction allowances | $ | 496,000 | $ | 137,000 | $ | 34,000 | |||||
Third party credit cards | 1,589,000 | 1,622,000 | 1,531,000 | ||||||||
Other | 525,000 | 441,000 | 729,000 | ||||||||
$ | 2,610,000 | $ | 2,200,000 | $ | 2,294,000 | ||||||
At September 28, 2013, December 29, 2012, and September 29, 2012, the Company’s income tax receivable was $49,000, $184,000 and $245,000, respectively, which resulted from quarterly federal and state tax estimated payments. | |||||||||||
INVENTORIES
INVENTORIES | 9 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
INVENTORIES | ' | ||||||||||
INVENTORIES | ' | ||||||||||
7. INVENTORIES | |||||||||||
September 28, | December 29, | September 29, | |||||||||
2013 | 2012 | 2012 | |||||||||
Raw materials | $ | 1,569,000 | $ | 1,014,000 | $ | 1,166,000 | |||||
Work-in-process | 1,528,000 | 2,237,000 | 2,784,000 | ||||||||
Finished goods | 18,491,000 | 17,995,000 | 19,856,000 | ||||||||
$ | 21,588,000 | $ | 21,246,000 | $ | 23,806,000 | ||||||
EQUIPMENT_AND_LEASEHOLD_IMPROV
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | 9 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | ' | ||||||||||
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | ' | ||||||||||
8. EQUIPMENT AND LEASEHOLD IMPROVEMENTS | |||||||||||
September 28, | December 29, | September 29, | |||||||||
2013 | 2012 | 2012 | |||||||||
Leasehold improvements | $ | 47,303,000 | $ | 47,734,000 | $ | 49,344,000 | |||||
Furniture, fixtures and equipment | 40,974,000 | 39,571,000 | 38,694,000 | ||||||||
88,277,000 | 87,305,000 | 88,038,000 | |||||||||
Less: accumulated depreciation and amortization | (68,463,000 | ) | (67,128,000 | ) | (67,516,000 | ) | |||||
$ | 19,814,000 | $ | 20,177,000 | $ | 20,522,000 | ||||||
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 9 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
ACCRUED LIABILITIES | ' | ||||||||||
ACCRUED LIABILITIES | ' | ||||||||||
9. ACCRUED LIABILITIES | |||||||||||
September 28, | December 29, | September 29, | |||||||||
2013 | 2012 | 2012 | |||||||||
Gift cards, merchandise credit cards and other customer deposits and credits | $ | 3,971,000 | $ | 4,118,000 | $ | 4,097,000 | |||||
Operating expenses | 2,894,000 | 2,502,000 | 1,821,000 | ||||||||
Taxes, including income taxes | 1,733,000 | 2,130,000 | 1,491,000 | ||||||||
Group insurance | 569,000 | 581,000 | 619,000 | ||||||||
Sales return reserve | 558,000 | 485,000 | 338,000 | ||||||||
Fixed asset additions | 425,000 | 764,000 | 59,000 | ||||||||
Deferred income — co-branded credit card program | 224,000 | 1,215,000 | 1,184,000 | ||||||||
$ | 10,374,000 | $ | 11,795,000 | $ | 9,609,000 | ||||||
OTHER_LIABILITIES
OTHER LIABILITIES | 9 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
OTHER LIABILITIES | ' | ||||||||||
OTHER LIABILITIES | ' | ||||||||||
10. OTHER LIABILITIES | |||||||||||
The Company’s other liabilities are comprised of the following: | |||||||||||
September 28, | December 29, | September 29, | |||||||||
2013 | 2012 | 2012 | |||||||||
Deferred rent | $ | 7,833,000 | $ | 8,372,000 | $ | 8,937,000 | |||||
Deferred income — co-branded credit card program | 1,215,000 | 405,000 | 691,000 | ||||||||
Severance | 237,000 | — | — | ||||||||
$ | 9,285,000 | $ | 8,777,000 | $ | 9,628,000 | ||||||
CREDIT_FACILITY
CREDIT FACILITY | 9 Months Ended |
Sep. 28, 2013 | |
CREDIT FACILITY | ' |
CREDIT FACILITY | ' |
11. CREDIT FACILITY | |
The Company had a $3.0 million credit facility with the Bank of America, which expired May 31, 2013. The agreement allowed the Company to issue letters of credit up to $3.0 million and was collateralized by a security interest in various certificates of deposit held by the Company. As of September 28, 2013, the Company had $1,750,000 of certificates of deposit collateralized for the remaining outstanding letters of credit with Bank of America. These certificates of deposit are reported as restricted funds. As letters of credit are drawn upon or replaced through our new credit facility described below, the restricted funds will be released. There were outstanding letters of credit of $ 1.1 million at September 28, 2013 under this facility which were collateralized by restricted funds. | |
The Company entered into a new credit agreement on July 25, 2013 (the “Credit Agreement”) with Wells Fargo Bank, National Association. The credit facility (“Credit facility”) pursuant to the Credit Agreement provides the Company with a line of credit of $25 million for short term borrowings and letters of credit with a sublimit of $5 million. Any borrowings that the Company may incur in the future under the Credit Facility are due and payable on July 25, 2018, at which time the facility thereunder terminates. | |
Borrowings under the Credit Facility bear interest, at the Company’s option, either at the London interbank offering rate (“LIBOR”) Margin or at the Base Rate Margin. LIBOR Margin is equal to LIBOR plus a margin of 1.50% per annum when the average daily availability is equal to or greater than 50% of the borrowing base. When the average daily availability is less than 50% of the borrowing base, the LIBOR Margin is equal to LIBOR, plus a margin of 1.75% per annum. Base Rate Margin is equal to the base rate as defined below, plus a margin of 0.50% per annum when the average daily availability is equal to or greater than 50% of the borrowing base. When the average daily availability is less than 50% the Base Rate Margin is equal to the base rate as defined below, plus a margin of 0.75% per annum. The base rate, as defined in the Credit Agreement, is a fluctuating rate per annum equal to the highest of (a) the U. S. federal funds rate, plus a margin of 0.50% per annum, (b) the adjusted LIBOR rate plus a margin of 1.00% or (c) the Wells Fargo prime rate in effect at that time. | |
The obligations of the Company under the Credit Facility are secured by liens on all assets of the Company. The Credit Agreement contains various customary covenants, including, but not limited to, limitations on indebtedness, liens, investments, dividends or other capital distributions, purchases or redemptions of stock, sales of assets or subsidiary stock, transactions with affiliates, line of business and accelerated payments of certain obligations. | |
The Credit Agreement contains events of default customary for similar financings. Upon the occurrence of an event of default, the outstanding obligations under the Credit Facility may be accelerated and become due and payable immediately. In addition, if certain change of control events occur with respect to any loan party, the Lenders have the right to require the Company to repay any outstanding loans under the Credit Facility. | |
The Company had outstanding letters of credit of $1.2 million under the Credit Facility and no borrowings as of September 28, 2013. | |
During the 39-week period September 28, 2013, the Company recorded $1.1 million of deferred financing costs in connection with the Credit Agreement, which are included in other assets at September 28, 2013 and will be amortized on a straight line basis through July 2018. | |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 28, 2013 | |
INCOME TAXES | ' |
INCOME TAXES | ' |
12. INCOME TAXES | |
The Company accounts for income taxes in accordance with “Income Taxes”, Topic 740 of the FASB ASC. This guidance requires the Company to recognize deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities, using applicable tax rates for the years in which the differences are expected to reverse. At December 29, 2012, the Company maintained $10.2 million of net deferred tax assets. During the 39-week period ended September 28, 2013, the Company recorded income tax expense of $10.2 million as a result of a full valuation allowance recorded against its net deferred tax assets. Federal valuation allowances totaled $22.3 million, $8.3 million and $5.8 million at September 28, 2013, December 29, 2012 and September 29, 2012, respectively. State valuation allowances totaled $4.2 million, $675,000 and $638,000 at September 28, 2013, December 29, 2012 and September 29, 2012, respectively. The valuation allowances are primarily to reserve for the possible non-utilization of net operating loss carry-forwards which may not be realized in future periods before they expire. At September 28, 2013, the Company had an estimated federal net operating loss carry-forward of approximately $53.5 million available for carry-forward expiring from 2030 through 2033. | |
At December 29, 2012 and September 29, 2012, the current portion of net deferred tax assets and liabilities of $352,000 and $388,000, respectively, were included in prepaid expenses and other current assets, while the non-current portion of net deferred tax assets and liabilities of $9.9 million and $10.4 million were included in other assets on the Company’s accompanying condensed consolidated balance sheets. These amounts are net of the valuation allowances discussed above. | |
When tax contingencies become probable, a liability for the contingent amount is estimated based upon the Company’s best estimation of the potential exposures associated with the timing and amount of deductions, as well as various tax filing positions. As of September 28, 2013, December 29, 2012 and September 29, 2012, the Company had no reserve recorded for potential tax contingencies. | |
RIGHTS_OFFERING_AND_RELATED_TR
RIGHTS OFFERING AND RELATED TRANSACTIONS | 9 Months Ended |
Sep. 28, 2013 | |
RIGHTS OFFERING AND RELATED TRANSACTIONS | ' |
RIGHTS OFFERING AND RELATED TRANSACTIONS | ' |
13. RIGHTS OFFERING AND RELATED TRANSACTIONS | |
On February 5, 2013, the Company entered into an Investment Agreement to provide additional capital (as amended, the “Backstop and Investment Agreement”). The Backstop and Investment Agreement required the Company to commence a rights offering, which was completed on May 1, 2013. Pursuant to the rights offering and the other issuances contemplated by the Backstop and Investment Agreement, the Company issued approximately 8.1 million shares of the Company’s common stock and raised approximately $13.4 million of gross proceeds. These proceeds were offset by $2.1 million of costs in connection with the issuance of the rights and the other issuances. The proceeds from these issuances are intended to provide the Company with the financial resources to return to profitability and growth under the leadership of Jay Margolis, who became the Chief Executive Officer and Chairman of the Board of Directors of the Company on February 5, 2013. | |
In connection with the Backstop and Investment Agreement, on February 5, 2013, Jay Margolis and the Company entered into an Employment Agreement (the “Employment Agreement”), which has a term of three years. Under the Employment Agreement, Mr. Margolis serves as Chief Executive Officer and Chairman of the Board of Directors, and is entitled to receive an annual base salary of $900,000 and an annual bonus with a target of fifty percent (50%) of his annual base salary, subject to financial performance targets set by the Company; provided, however, that for 2013, he is entitled to a guaranteed bonus of $225,000. | |
In addition, the Company and Mr. Margolis entered into a Nonqualified Stock Option Agreement, dated as of February 5, 2013, which granted to Mr. Margolis, a time-based stock option (the “Option”) to purchase 1,000,000 shares of the Company’s common stock, with an exercise price equal to $3.34 (see Note 2).The Option vests in equal installments on the first, second and third anniversary of the grant date. The Option grant made to Mr. Margolis was awarded as stock options that qualify as an inducement grant pursuant to NASDAQ Listing Rules. | |
Furthermore, on February 5, 2013, Thomas E. Reinckens resigned as Chairman of the Board and Chief Executive Officer of the Company. In connection with his resignation, Mr. Reinckens and the Company entered into a Separation and General Release Agreement, dated as of February 5, 2013 (the “Separation Agreement”). The Separation Agreement provides for severance in the form of continuing payments for the remaining balance of his employment term, in the amount of approximately $1.2 million over a period of approximately two years, subject to reduction for any compensation he receives from any employment or consultant position during the remainder of the term. The $1.2 million was accrued with related payroll taxes in the first quarter of fiscal 2013. In connection with his resignation, Mr. Reinckens forfeited all of his remaining stock options and unvested restricted shares. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 28, 2013 | |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | ' |
14. COMMITMENTS AND CONTINGENCIES | |
The Company is exposed to a number of asserted and unasserted potential claims. Management does not believe it is reasonably possible that resolution of these matters will result in a material loss. The Company had no guarantees, subleases or assigned lease obligations as of September 28, 2013, December 29, 2012 or September 29, 2012. | |
STOCK_BASED_COMPENSATION_Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended | ||||
Sep. 28, 2013 | |||||
STOCK BASED COMPENSATION | ' | ||||
Schedule of assumptions used in estimation of fair value of each option grant on the date of grant using the Black Scholes option valuation model | ' | ||||
Expected dividend rate | $ | 0 | |||
Expected volatility | 50.72 | % | |||
Risk free interest rate | 0.41 | % | |||
Expected lives (years) | 3 |
BASIC_AND_DILUTED_EARNINGS_PER1
BASIC AND DILUTED EARNINGS PER SHARE (Tables) | 9 Months Ended | |||||||||||||
Sep. 28, 2013 | ||||||||||||||
BASIC AND DILUTED EARNINGS PER SHARE | ' | |||||||||||||
Schedule of computations of basic and diluted earnings per share | ' | |||||||||||||
39-Weeks Ended | 13-Weeks Ended | |||||||||||||
September 28, | September 29, | September 28, | September 29, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Net loss | $ | (29,660,000 | ) | $ | (6,553,000 | ) | $ | (7,997,000 | ) | $ | (6,376,000 | ) | ||
Basic weighted number of average shares outstanding | 17,450,000 | 12,882,000 | 21,090,000 | 12,892,000 | ||||||||||
Incremental shares from assumed issuances of stock options and restricted stock awards | — | — | — | — | ||||||||||
Diluted weighted average number of shares outstanding | 17,450,000 | 12,882,000 | 21,090,000 | 12,892,000 | ||||||||||
Net loss per share - Basic | $ | (1.70 | ) | $ | (0.51 | ) | $ | (0.38 | ) | $ | (0.49 | ) | ||
- Diluted | $ | (1.70 | ) | $ | (0.51 | ) | $ | (0.38 | ) | $ | (0.49 | ) |
RECEIVABLES_Tables
RECEIVABLES (Tables) | 9 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
RECEIVABLES | ' | ||||||||||
Schedule of accounts receivable of the entity | ' | ||||||||||
September 28, | December 29, | September 29, | |||||||||
2013 | 2012 | 2012 | |||||||||
Construction allowances | $ | 496,000 | $ | 137,000 | $ | 34,000 | |||||
Third party credit cards | 1,589,000 | 1,622,000 | 1,531,000 | ||||||||
Other | 525,000 | 441,000 | 729,000 | ||||||||
$ | 2,610,000 | $ | 2,200,000 | $ | 2,294,000 |
INVENTORIES_Tables
INVENTORIES (Tables) | 9 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
INVENTORIES | ' | ||||||||||
Schedule of inventories | ' | ||||||||||
September 28, | December 29, | September 29, | |||||||||
2013 | 2012 | 2012 | |||||||||
Raw materials | $ | 1,569,000 | $ | 1,014,000 | $ | 1,166,000 | |||||
Work-in-process | 1,528,000 | 2,237,000 | 2,784,000 | ||||||||
Finished goods | 18,491,000 | 17,995,000 | 19,856,000 | ||||||||
$ | 21,588,000 | $ | 21,246,000 | $ | 23,806,000 |
EQUIPMENT_AND_LEASEHOLD_IMPROV1
EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Tables) | 9 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
EQUIPMENT AND LEASEHOLD IMPROVEMENTS | ' | ||||||||||
Schedule of equipment and leasehold improvements | ' | ||||||||||
September 28, | December 29, | September 29, | |||||||||
2013 | 2012 | 2012 | |||||||||
Leasehold improvements | $ | 47,303,000 | $ | 47,734,000 | $ | 49,344,000 | |||||
Furniture, fixtures and equipment | 40,974,000 | 39,571,000 | 38,694,000 | ||||||||
88,277,000 | 87,305,000 | 88,038,000 | |||||||||
Less: accumulated depreciation and amortization | (68,463,000 | ) | (67,128,000 | ) | (67,516,000 | ) | |||||
$ | 19,814,000 | $ | 20,177,000 | $ | 20,522,000 |
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 9 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
ACCRUED LIABILITIES | ' | ||||||||||
Schedule of accrued liabilities | ' | ||||||||||
September 28, | December 29, | September 29, | |||||||||
2013 | 2012 | 2012 | |||||||||
Gift cards, merchandise credit cards and other customer deposits and credits | $ | 3,971,000 | $ | 4,118,000 | $ | 4,097,000 | |||||
Operating expenses | 2,894,000 | 2,502,000 | 1,821,000 | ||||||||
Taxes, including income taxes | 1,733,000 | 2,130,000 | 1,491,000 | ||||||||
Group insurance | 569,000 | 581,000 | 619,000 | ||||||||
Sales return reserve | 558,000 | 485,000 | 338,000 | ||||||||
Fixed asset additions | 425,000 | 764,000 | 59,000 | ||||||||
Deferred income — co-branded credit card program | 224,000 | 1,215,000 | 1,184,000 | ||||||||
$ | 10,374,000 | $ | 11,795,000 | $ | 9,609,000 |
OTHER_LIABILITIES_Tables
OTHER LIABILITIES (Tables) | 9 Months Ended | ||||||||||
Sep. 28, 2013 | |||||||||||
OTHER LIABILITIES | ' | ||||||||||
Schedule of other liabilities | ' | ||||||||||
September 28, | December 29, | September 29, | |||||||||
2013 | 2012 | 2012 | |||||||||
Deferred rent | $ | 7,833,000 | $ | 8,372,000 | $ | 8,937,000 | |||||
Deferred income — co-branded credit card program | 1,215,000 | 405,000 | 691,000 | ||||||||
Severance | 237,000 | — | — | ||||||||
$ | 9,285,000 | $ | 8,777,000 | $ | 9,628,000 |
BASIS_OF_PRESENTATION_Details
BASIS OF PRESENTATION (Details) | 9 Months Ended | 12 Months Ended |
Sep. 28, 2013 | Dec. 29, 2012 | |
item | ||
BASIS OF PRESENTATION | ' | ' |
Number of women's apparel specialty stores operated | 250 | ' |
Basis of presentation | ' | ' |
Length of fiscal year | '364 days | '364 days |
Minimum | ' | ' |
Basis of presentation | ' | ' |
Length of fiscal year | '364 days | ' |
Maximum | ' | ' |
Basis of presentation | ' | ' |
Length of fiscal year | '371 days | ' |
STOCK_BASED_COMPENSATION_Detai
STOCK BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Feb. 05, 2013 | Sep. 29, 2012 | Sep. 29, 2012 | Sep. 28, 2013 | Mar. 30, 2013 | Sep. 29, 2012 | Mar. 31, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
Stock options | Stock options | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Jay Margolis | Jay Margolis | Jay Margolis | Board members | Board members | Board members | Board members | Board members | Board members | |||||
Time-based stock options | Time-based stock options | Time-based stock options | |||||||||||||||||
STOCK BASED COMPENSATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | $288,000 | $68,000 | $502,000 | $230,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCK BASED COMPENSATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 0 | 0 | ' | ' | ' | ' | ' | ' |
Exercise price of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.34 | ' | ' | ' | ' | ' | ' | ' | ' |
Excess tax benefits recognized from exercise of stock options | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000 | ' | 14,000 | ' | ' |
Total fair value of stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94,000 | ' | 95,000 | ' | ' |
Fair value of stock issued included in stock-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,000 | ' | 23,000 | ' | 89,000 | 71,000 |
Number of restricted stock awards granted (in shares) | ' | ' | ' | ' | ' | ' | 115,000 | 0 | 370,000 | 12,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant-Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | $5.33 | ' | $4.28 | $6.70 | $1.15 | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | '3 years | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumptions used in calculating fair value of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend rate | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | ' | ' | 50.72% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk free interest rate (as a percent) | ' | ' | ' | ' | 0.41% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected lives | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
BASIC_AND_DILUTED_EARNINGS_PER2
BASIC AND DILUTED EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
BASIC AND DILUTED EARNINGS PER SHARE | ' | ' | ' | ' |
Net loss | ($7,997,000) | ($6,376,000) | ($29,660,000) | ($6,553,000) |
Basic weighted number of average shares outstanding | 21,090,000 | 12,892,000 | 17,450,000 | 12,882,000 |
Diluted weighted average number of shares outstanding | 21,090,000 | 12,892,000 | 17,450,000 | 12,882,000 |
Net loss per share - Basic (in dollars per share) | ($0.38) | ($0.49) | ($1.70) | ($0.51) |
Net loss per share - Diluted (in dollars per share) | ($0.38) | ($0.49) | ($1.70) | ($0.51) |
Stock options and unvested restricted common shares | ' | ' | ' | ' |
Anti-dilutive shares | ' | ' | ' | ' |
Anti-dilutive securities excluded from the computation of diluted earnings (in shares) | 1,483,444 | 1,176,675 | 1,483,444 | 1,176,675 |
FAIR_VALUE_MEASUREMENT_Details
FAIR VALUE MEASUREMENT (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | |
Fair value measurement | ' | ' | ' | ' | ' |
Marketable securities | ' | $3,009,000 | ' | $3,009,000 | $3,013,000 |
Level 1 inputs | ' | ' | ' | ' | ' |
Fair value measurement | ' | ' | ' | ' | ' |
Fair value of marketable securities, which consist of certificates of deposits | ' | 3,000,000 | ' | 3,000,000 | 3,000,000 |
Marketable securities | 0 | ' | 0 | ' | ' |
Impairment of marketable securities | $0 | $0 | $0 | $0 | ' |
RECEIVABLES_Details
RECEIVABLES (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 29, 2012 |
Receivables | ' | ' | ' |
Receivables, net | $2,610,000 | $2,200,000 | $2,294,000 |
Income tax receivable | 49,000 | 184,000 | 245,000 |
Construction allowances | ' | ' | ' |
Receivables | ' | ' | ' |
Receivables, net | 496,000 | 137,000 | 34,000 |
Third party credit cards | ' | ' | ' |
Receivables | ' | ' | ' |
Receivables, net | 1,589,000 | 1,622,000 | 1,531,000 |
Other | ' | ' | ' |
Receivables | ' | ' | ' |
Receivables, net | $525,000 | $441,000 | $729,000 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 29, 2012 |
INVENTORIES | ' | ' | ' |
Raw materials | $1,569,000 | $1,014,000 | $1,166,000 |
Work-in-process | 1,528,000 | 2,237,000 | 2,784,000 |
Finished goods | 18,491,000 | 17,995,000 | 19,856,000 |
Inventories, net | $21,588,000 | $21,246,000 | $23,806,000 |
EQUIPMENT_AND_LEASEHOLD_IMPROV2
EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 29, 2012 |
Equipment and Leasehold Improvements | ' | ' | ' |
Equipment and leasehold improvements, gross | $88,277,000 | $87,305,000 | $88,038,000 |
Less: accumulated depreciation and amortization | -68,463,000 | -67,128,000 | -67,516,000 |
Equipment and leasehold improvements, net | 19,814,000 | 20,177,000 | 20,522,000 |
Leasehold improvements | ' | ' | ' |
Equipment and Leasehold Improvements | ' | ' | ' |
Equipment and leasehold improvements, gross | 47,303,000 | 47,734,000 | 49,344,000 |
Furniture, fixtures and equipment | ' | ' | ' |
Equipment and Leasehold Improvements | ' | ' | ' |
Equipment and leasehold improvements, gross | $40,974,000 | $39,571,000 | $38,694,000 |
ACCRUED_LIABILITIES_Details
ACCRUED LIABILITIES (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 29, 2012 |
ACCRUED LIABILITIES | ' | ' | ' |
Gift cards, merchandise credit cards and other customer deposits and credits | $3,971,000 | $4,118,000 | $4,097,000 |
Operating expenses | 2,894,000 | 2,502,000 | 1,821,000 |
Taxes, including income taxes | 1,733,000 | 2,130,000 | 1,491,000 |
Group insurance | 569,000 | 581,000 | 619,000 |
Sales return reserve | 558,000 | 485,000 | 338,000 |
Fixed asset additions | 425,000 | 764,000 | 59,000 |
Deferred income - co-branded credit card program | 224,000 | 1,215,000 | 1,184,000 |
Accrued liabilities | $10,374,000 | $11,795,000 | $9,609,000 |
OTHER_LIABILITIES_Details
OTHER LIABILITIES (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 29, 2012 |
OTHER LIABILITIES | ' | ' | ' |
Deferred rent | $7,833,000 | $8,372,000 | $8,937,000 |
Deferred income - co-branded credit card program | 1,215,000 | 405,000 | 691,000 |
Severance | 237,000 | ' | ' |
Other liabilities | $9,285,000 | $8,777,000 | $9,628,000 |
CREDIT_FACILITY_Details
CREDIT FACILITY (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Sep. 28, 2013 | Jul. 25, 2013 | Sep. 28, 2013 | Jul. 25, 2013 | Jul. 25, 2013 | Jul. 25, 2013 | Jul. 25, 2013 | Jul. 25, 2013 | Jul. 25, 2013 | Jul. 25, 2013 |
Letters of credit | Letters of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | ||||
LIBOR | LIBOR | Base rate | Base rate | U. S. federal funds rate | Adjusted LIBOR rate | ||||||||
Average daily availability equal to or greater than 50% of the borrowing base | Average daily availability less than 50% of the borrowing base | Average daily availability equal to or greater than 50% of the borrowing base | Average daily availability less than 50% of the borrowing base | ||||||||||
Bank debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity | ' | ' | ' | $3,000,000 | $5,000,000 | $0 | $25,000,000 | ' | ' | ' | ' | ' | ' |
Letters of credit collateralized by security interest in certificates of deposit | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Certificates of deposit collateralized for the remaining outstanding facility | 1,750,000 | 3,000,000 | 3,000,000 | 1,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, amount outstanding | ' | ' | ' | 1,100,000 | ' | 1,200,000 | ' | ' | ' | ' | ' | ' | ' |
Reference rate | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'LIBOR | 'base rate | 'base rate | 'federal funds rate | 'adjusted LIBOR rate |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | 1.50% | 1.75% | 0.50% | 0.75% | 0.50% | 1.00% |
Deferred financing costs | ' | ' | ' | ' | ' | $1,100,000 | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Dec. 29, 2012 | |
INCOME TAXES | ' | ' | ' | ' | ' |
Net deferred tax assets | ' | ' | ' | ' | $10,200,000 |
Income taxes | ' | ' | ' | ' | ' |
Income tax expense (benefit) | 8,000 | -1,713,000 | 10,255,000 | -1,840,000 | ' |
Current portion of net deferred tax assets and liabilities | ' | 388,000 | ' | 388,000 | 352,000 |
Non-current portion of net deferred tax assets and liabilities | ' | 10,400,000 | ' | 10,400,000 | 9,900,000 |
Reserve recorded for potential tax contingencies | 0 | 0 | 0 | 0 | 0 |
Federal | ' | ' | ' | ' | ' |
Income taxes | ' | ' | ' | ' | ' |
Valuation allowance | 22,300,000 | 5,800,000 | 22,300,000 | 5,800,000 | 8,300,000 |
Net operating loss carry-forward | 53,500,000 | ' | 53,500,000 | ' | ' |
State | ' | ' | ' | ' | ' |
Income taxes | ' | ' | ' | ' | ' |
Valuation allowance | $4,200,000 | $638,000 | $4,200,000 | $638,000 | $675,000 |
RIGHTS_OFFERING_AND_RELATED_TR1
RIGHTS OFFERING AND RELATED TRANSACTIONS (Details) (USD $) | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | ||||
Sep. 28, 2013 | Feb. 05, 2013 | Sep. 29, 2012 | Sep. 29, 2012 | 1-May-13 | Feb. 05, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Feb. 05, 2013 | Feb. 05, 2013 | Mar. 30, 2013 | |
Jay Margolis | Jay Margolis | Jay Margolis | Backstop and Investment Agreement | Employment Agreement | Employment Agreement | Employment Agreement | Nonqualified Stock Option Agreement | Separation and General Release Agreement | Separation and General Release Agreement | ||
Time-based stock options | Time-based stock options | Time-based stock options | Jay Margolis | Jay Margolis | Jay Margolis | Jay Margolis | Thomas E. Reinckens | Thomas E. Reinckens | |||
Maximum | Time-based stock options | ||||||||||
RIGHTS OFFERING AND RELATED TRANSACTIONS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of the company's common stock issued | ' | ' | ' | ' | 8,100,000 | ' | ' | ' | ' | ' | ' |
Gross proceeds from issuance of shares of the company's common stock | $13,419,000 | ' | ' | ' | $13,400,000 | ' | ' | ' | ' | ' | ' |
Costs in connection with the issuance of the rights and the other issuances | 2,046,000 | ' | ' | ' | 2,100,000 | ' | ' | ' | ' | ' | ' |
Term of agreement | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' |
Annual base salary | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' |
Annual bonus as a percentage of annual base salary, subject to financial performance targets | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' |
Guaranteed bonus | ' | ' | ' | ' | ' | ' | 225,000 | ' | ' | ' | ' |
Number of options granted (in shares) | ' | 1,000,000 | 0 | 0 | ' | ' | ' | ' | 1,000,000 | ' | ' |
Exercise price of options granted (in dollars per share) | ' | $3.34 | ' | ' | ' | ' | ' | ' | $3.34 | ' | ' |
Severance benefits payable for the remaining balance of employment term | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,200,000 | $1,200,000 |
Term during which severance benefits will be payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 29, 2012 |
COMMITMENTS AND CONTINGENCIES | ' | ' | ' |
Amount of guarantees, subleases or assigned lease obligations | $0 | $0 | $0 |