Note 9 - Line of Credit

9 Months Ended

Oct. 01, 2011

Short-term Debt [Text Block]

9. Line of Credit

The Company and its subsidiaries are party to a loan agreement with Citizens Bank of Pennsylvania, amended and restated effective February 20, 2009, which provides for a $15 million revolving credit facility and includes a sub-limit of $5.0 million for letters of credit (the “Revolving Credit Facility”).  The Revolving Credit Facility was amended on October 24, 2011 to extend the maturity date to November 30, 2011.  Borrowings under the Revolving Credit Facility bear interest at one of two alternative rates, as selected by the Company at each incremental borrowing.  These alternatives are: (i) LIBOR (London Interbank Offered Rate), plus applicable margin, or (ii) the agent bank's prime rate.  The Company also pays unused line fees based on the amount of the Revolving Credit Facility that is not drawn.

All borrowings under the Revolving Credit Facility are collateralized by all of the assets of the Company and its subsidiaries and a pledge of the stock of its subsidiaries.  The Revolving Credit Facility alsocontains various financial and non-financial covenants, such as restrictions on the Company’s ability to pay dividends.  The Revolving Credit Facility expires November 30, 2011.  The Company intends to seek to extend or replace the Revolving Credit Facility prior to such time if it is determined that doing so would be in alignment with the Company’s financing needs.

There were no borrowings during the thirty-nine week periods ended October 1, 2011 and October 2, 2010.  At October 1, 2011 and January 1, 2011, there were letters of credit outstanding for $0.9 million.  At October 1, 2011, the Company had availability for additional borrowings under the Revolving Credit Facility of $14.1 million.