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Subsequent Event
12 Months Ended
Feb. 02, 2019
Subsequent Events [Abstract]  
SUBSEQUENT EVENT

NOTE 15 – SUBSEQUENT EVENT

 

On April 11, 2019, the Company announced that the Board had approved a plan to close 159 underperforming stores (the “Closures”). The decision to close these stores was the result of a comprehensive evaluation of the Company’s store portfolio, which examined historical and recent store performance and the timing of lease expirations, among other factors.  The Company intends to close these stores by the end of May 2019.  The timing of the Closures is subject to change until finalized, and the actual timing may vary materially based on various factors. The Company is further evaluating certain additional store closures, although no applicable approvals have been obtained to do so at this time.   

 

The Company is currently unable in good faith to make a determination of an estimate of the amount or range of amounts expected to be incurred in connection with the Closures, both with respect to each major type of cost associated therewith and with respect to the total cost, or an estimate of the amount or range of amounts that will result in future cash expenditures.  The Company is also currently unable in good faith to make a determination of an estimate of the amount or range of amounts of impairment charge to be incurred in connection with the Closures, or an estimate of the amount or range of amounts of the impairment charge that will result in future cash expenditures.  The Company will file an amendment to the Current Report on Form 8-K on April 11, 2019 relating to, among other things, the Closures, after it determines such estimates or ranges of estimates.

 

On April 11, 2019, the Company also announced that it had retained PJ Solomon to assist the Board in undertaking a comprehensive review of the full range of strategic alternatives available to the Company, which may include an evaluation of the Company’s current operating plan, as well as potential alternatives to maximize value, including, among other things, a sale, merger, a consolidation or business combination, further store closures, asset divestitures, financing transactions or restructurings. 

 

The Company has not set a timetable for completion of the evaluation process. As previously disclosed, no decision has been made to pursue any specific strategic transaction or any other strategic alternative, and there can be no assurance that the Board’s exploration of strategic alternatives will result in the completion of any transaction or other alternative. The Company does not intend to discuss or disclose developments with respect to this process unless and until the Board has approved a specific transaction, or otherwise deems further disclosure is appropriate or if disclosure is required by applicable law. 

 

See also Note 4 under the heading “Recent Developments Relating to the Revolving Credit Facility.”  

 

The foregoing recent developments involve various risks and uncertainties.  See “Cautionary Statement Regarding Forward-Looking Information” and Item 1A: “Risk Factors” included elsewhere in this Form 10-K.