BASIS OF PRESENTATION

3 Months Ended

Jun. 01, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

NOTE 2  – BASIS OF PRESENTATION

Liquidation Basis of Accounting

The liquidation basis of accounting is appropriate when the liquidation of a company appears imminent and the net realizable value of its assets is reasonably determinable. Under this basis of accounting, assets and liabilities are stated at their net realizable value and estimated costs over the anticipated period of liquidation are accrued to the extent reasonably determinable.

Significant estimates and judgment are required to determine the accrued costs of liquidation. The company’s accrued costs expected to be incurred in liquidation and recorded payments made related to the accrued liquidation costs are as follows (in thousands):

	Balance						Balance
	March 2,		Adjustments			Net	June 1,
Estimated Costs of Liquidation	2013		to Reserves		Payments		2013
Real estate related carrying costs	$	15,653	$	2,084	$	(2,204)	$	15,533
Professional fees		5,046		244		(1,037)		4,253
Payroll related costs		3,428		33		(396)		3,065
Other		360		10		-		370
	$	24,487	$	2,371	$	(3,637)	$	23,221

The Company reviewed all operating expenses and contractual commitments such as payroll and related expenses, lease termination costs, property carrying costs and professional fees to determine the estimated costs to be incurred during the liquidation period. The liquidation period, which was initially anticipated to conclude in August 2012, was amended in the fourth quarter of 2012 to conclude in July 2015 based on the current belief of the Company that substantially all of its real estate properties are likely to be monetized prior to the end of 2014, with a short period thereafter to conclude the liquidation.

Adjustments to increase the reserve for real estate carrying costs of approximately $2. 1 million were recorded during the thirteen weeks ended June 1, 2013. The adjustments were mainly the result of increasing the estimated expenses through the liquidation period contemplated under the Plan.

Adjustments to increase the reserve for professional fees of approximately $0.2 million were recorded during the thirteen weeks ended June 1, 2013. The majority of the increase reflects the evaluation of professional fees through the liquidation period contemplated under the Plan.

Adjustments to Fair Value of Assets and Liabilities 

The following table summarizes adjustments to the fair value of assets and liabilities under the liquidation basis of accounting during the thirteen week period ended June 1, 2013.

Adjustments of Assets and Liabilities to Net Realizable Value	March 3, 2013 through June 1, 2013
Adjust real estate to estimated net realizable value	$	(1,100)
Adjust other claims to net realizable value		2,055
	$	955

During the thirteen weeks ended June 1, 2013, the Company adjusted two properties to their current net realizable value by $1.1 million in the aggregate.

During the thirteen weeks ended June 1, 2013, there were approximately $2.1 million of  adjustments to estimated claims payout as the Company continues its reconciliation of claims.