Restructuring Charges

6 Months Ended

Aug. 27, 2011

Note 13 – Restructuring Charges

Since the acquisition of Filene’s in June 2009, the Company has continued to assess the most effective manner in which to integrate the operations of Filene’s and Syms to maximize the synergies of the two businesses. This plan included the integration of the two IT systems into one common platform, the consolidation of distribution center functions, the co-branding of several stores, the closing of Filene’s Massachusetts office and related reductions in staffing levels. In addition, the Company closed four under-performing stores in fiscal 2010. The Company is required to continue to make lease payments on two of these closed stores, one through May 2012 and the other through September 2017. The Company recorded the present value of these payments (net of estimated sub-lease income) in fiscal 2010 as a restructuring charge, totaling $7,171,000.

The consolidation of distribution center functions involved a shift of most merchandise processing to the Company’s Massachusetts distribution center. The New Jersey distribution center now serves to replenish the high volume New York City stores, and continues to house the adjoining retail store and corporate offices. Severance costs associated with staffing level reductions for approximately 200 employees, including store, distribution center and corporate support staff, totaled $1,082,000 in fiscal 2010. In addition, $793,000 in professional fees related to the integration of the two IT systems and $260,000 of legal costs were incurred in fiscal 2010, and recorded as restructuring charges in fiscal 2010.

For the thirteen weeks ended August 27, 2011, there were no restructuring charges recorded. In the prior year period, $471,000 of restructuring charges were recorded, consisting of $193,000 in professional fees, $147,000 in severance costs and $131,000 of legal fees.

The details of the restructuring accruals are as follows:

(In thousands)	Lease obligations			One-time termination benefits			Total
Balance, February 26, 2011	$	7,208		$	106		$	7,314
Payments and other adjustments		(1,067	)		(106	)		(1,173	)
Balance, August 27, 2011	$	6,141		$	-		$	6,141

The net accrual of $6,141 at August 27, 2011 is reported as $2,110 in accrued expenses and $4,031 in other long-term liabilities.