Related Party Transactions

12 Months Ended

Jan. 28, 2012

Related Party Transactions [Abstract]

Related Party Transactions

18. Related Party Transactions

In connection with the purchase of the Company by Bain Capital in April of 2006, the Company entered into an advisory agreement with Bain Capital (the Advisory Agreement) pursuant to which Bain Capital provides management, consulting, financial and other advisory services. Pursuant to the agreement, Bain Capital is paid a periodic fee of $1.0 million per fiscal quarter plus reimbursement for reasonable out-of-pocket fees, and a fee equal to 1% of the transaction value of certain financing, acquisition, disposition or change of control or similar transaction by or involving the Company. Fees paid to Bain Capital amounted to $4.3 million, $4.3 million, $2.9 million and $4.7 million during Fiscal 2011, Fiscal 2010, the Transition Period and Fiscal 2009, respectively, and are included in the line item "Selling and Administrative Expenses" in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income. The Advisory Agreement has a 10-year initial term, and is thereafter subject to automatic one-year extensions unless the Company or Bain Capital provides written notice of termination, except that the agreement terminates automatically upon an initial public offering or a change of control of the Company. If the Advisory Agreement is terminated early, Bain Capital will be entitled to receive all unpaid fees and unreimbursed out-of-pocket fees and expenses, as well as the present value of the periodic fee that would otherwise have been payable through the end of the 10-year term.

As of both January 28, 2012 and January 29, 2011, the Company had $0.7 million of prepaid advisory fees related to the Advisory Agreement recorded within the line item "Prepaid and Other Current Assets" in the Company's Consolidated Balance Sheets.