8-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 6, 2010

TRANS WORLD ENTERTAINMENT CORPORATION

(Exact name of registrant as specified in its charter)

New York	0-14818	14-1541629
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	identification No.)

38 Corporate Circle, Albany, New York	12203
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (518) 452-1242

None

(Former name or former address, if changed since last report.)

ITEM 2.02.      RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On January 6, 2010, Trans World Entertainment Corporation issued a press release announcing its holiday sales results. A copy of Trans World Entertainment Corporation’s press release is furnished with this report as Exhibit 99.1, and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K is being furnished under Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

ITEM 7.01.      REGULATION FD DISCLOSURE

Attached hereto as Exhibit 99.2 is the transcript for the holiday sales conference call of Trans World Entertainment Corporation held on January 6, 2010. The information in this Current Report on Form 8-K, including the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. Furthermore, such information, including the exhibit attached hereto, shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Certain information contained in this Current Report on Form 8-K, including information in Exhibit 99.2 hereto, is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning results of operations and Trans World Entertainment Corporation’s strategies. Trans World Entertainment Corporation cautions that there are factors that can cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Trans World Entertainment Corporation; accordingly, there can be no assurance that such suggested results will be realized. For a list of Trans World Entertainment Corporation’s risk factors, see the Company’s Annual Filing on Form 10-K with the Securities and Exchange Commission for the year ended January 31, 2009.

ITEM 9.01.      FINANCIAL STATEMENTS AND EXHIBITS

          (c) EXHIBITS. The following are furnished as Exhibits to this Report:

Exhibit
No.	Description
99.1	Trans World Entertainment Corporation Press Release dated January 6, 2010.
99.2	Trans World Entertainment Corporation Transcript for Earnings Call held on January 6, 2010.

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SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	TRANS WORLD ENTERTAINMENT CORPORATION
Date: January 7, 2010	/s/John Sullivan
	John J. Sullivan
	Executive Vice President-Finance, Chief
	Financial Officer and Secretary

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EXHIBIT INDEX

Exhibit
No.	Description
99.1	Trans World Entertainment Corporation Press Release dated January 6, 2010.
99.2	Trans World Entertainment Corporation Transcript of Earnings Call held on January 6, 2010.

EX-99.1

Contact:
Trans World Entertainment
John J. Sullivan
EVP, Chief Financial Officer
(518) 452-1242 Contact:
Financial Relations Board
Marilynn Meek
(mmeek@frbir.com)
(212) 827-3773

38 Corporate Circle
Albany, NY 12203
www.twec.com	NEWS RELEASE

TRANS WORLD ENTERTAINMENT ANNOUNCES HOLIDAY SALES RESULTS
Comparable store sales decline 5% for December

          Albany, NY, January 6, 2010 – Trans World Entertainment Corporation (NASDAQ: TWMC) today reported a comparable store sales decrease of 5% for the five-week period ended January 2, 2010. For the nine-week period ended January 2, 2010, comparable store sales decreased 8%. Total sales for the nine-week period were $241 million compared to $287 million for the same period last year, a decrease of 16%. The Company operated 12% fewer stores, on average, during the nine-week period as compared to last year.

          For the eleven-month period ended January 2, 2010, comparable store sales decreased 10%. Total sales for the period decreased 18% to $760 million compared to $930 million during the same period last year.

          Trans World will host a teleconference call today, Wednesday, January 6, 2010, at 10:00 AM ET to discuss its holiday sales results. Interested parties can listen to the simultaneous webcast on the Company’s corporate website, www.twec.com.

          Trans World Entertainment is a leading specialty retailer of entertainment software, including music, video and video games and related products. The Company operates retail stores in the United States, the District of Columbia, the U.S. Virgin Islands, and Puerto Rico, primarily under the names f.y.e.for your entertainment and Suncoast and on the web at www.fye.com, www.wherehouse.com, www.secondspin.com and www.suncoast.com.

Certain statements in this release set forth management’s intentions, plans, beliefs, expectations or predictions of the future based on current facts and analyses. Actual results may differ materially from those indicated in such statements. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the Securities and Exchange Commission.

EX-99.2

Transworld Entertainment
Moderator: Rich Tauberman
1/6/2010 - 10:00 AM ET
Confirmation # 1424431
Page 1

Transworld Entertainment

Moderator: Rich Tauberman
January 6, 2010
10:00 AM ET

Operator:

Good day, ladies and gentlemen, and welcome to Transworld Entertainment Holiday Sales Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question and answer session with instructions following at that time. If anyone requires assistance, please press star then zero on your touchtone telephone. And as a reminder, this conference call is being recorded. And now your host for today’s conference, Bob Higgins, Chairman and CEO of Transworld Entertainment. Please begin, sir.

Bob Higgins:

Thank you, Tyrone. Good morning. With me today is Jim Litwak, our President and John Sullivan our Chief Financial Officer. During today’s call we will provide you with an overview of our sales performance for the 2009 holiday season. For the five weeks in December, our comp sales decreased 5%, which is our best performance of the year after declining 14% in November. Our customer transactions for the month were up 3% and our average transactions were down 9%. For the nine-week period, including November, our comp sales were down 8%. The decline in the nine-week period was driven by declines in video and games, partially offset by an improvement in our music business. Comp sales in the music category declined 1% in December and represented 31% of our business versus 29% last year. This was driven by stronger new releases than last year and a more aggressive promotional strategy. Top 50 for December was up 5% with the strongest sellers being Susan Boyle, Alicia Keys, Andrea Bocelli, Lady GaGa, and Justin Bieber. For the nine-week period, music comp sales were down 5%. Video sales during December declined 8% on a comp basis and represented 42% of our business this year versus 44% last year. The top 50 in December declined 7% with the top sellers being The Hangover, Harry Potter, Family Guy, and Inglorious Bastards. For the nine-week period including November, comp sales declined 10%.

Transworld Entertainment
Moderator: Rich Tauberman
1/6/2010 - 10:00 AM ET
Confirmation # 1424431
Page 2

	Game sales declined 17% for December as we adopted a less promotional stance on key hardware systems while our top 50 software titles declined 35% versus last year. Game mix was 10% versus 11% last year. For the nine-week period, comp sales in games were down 21%. Comp store sales for our other categories, electronics, accessories, and trend, were up 1% for December and were 17% of our business versus 16% last year. The nine-week comp sales declined 1%. During the quarter, we are closing 137 stores, which will bring our closings for the year to 161. We will end the year with 553 stores. A key part of our strategy is closing under performing stores as we work to turn the business around. We expect to finish this year with cash on hand of over $50 million and zero outstanding on our revolving credit facility. The credit facility allows for borrowings of up to $150 million, which will provide more than enough liquidity for operations going forward. We will release our fourth quarter and year-end earnings release on Thursday, March 4, 2010. At this time I’d like to answer any questions anyone might have. Tyrone, could you open it up for questions please?
Operator:	Thank you, sir. Ladies and gentlemen, if you have a question or comment at this time, please press star then one on your touchtone telephone. Again, if you have a question or comment at this time, please press star then one on your touchtone telephone. Our first question is from David Berman.
David Berman: Bob Higgins: David Berman:	Hey, Bob. How are you doing? Good, David. How are you? Good, thanks. I was just wondering if you could give more color to the holiday season? Just share with us more about what your expectations were going into it and how it sort of played out throughout the month and the quarter.
Bob Higgins:	Well, we would have liked to have seen something a little better in the comp basis. We definitely got affected quite a bit, not that we ever like to blame it on weather, but we did get hit with quite a bit of weather. But in general, we felt because of the improvement in December compared to November, was a decent month, however we would have liked to have seen a better performance.
David Berman:	And how was it for the week after -- what is it like after Christmas versus before Christmas?
Bob Higgins:	The after Christmas week was a decent week. And the few days before Christmas were decent. But in general, there was some slowness during the month. Definitely there was slowness when we got whacked with the winter storm that went from Washington all the way up the East Coast.
David Berman: Bob Higgins:	Right, okay. Thank you very much. Thank you, David.

Transworld Entertainment
Moderator: Rich Tauberman
1/6/2010 - 10:00 AM ET
Confirmation # 1424431
Page 3

Operator:	Thank you. And again, if you have a question please press star then one on your touchtone telephone. And sir, I’m showing no further questions or comments at this time.
Bob Higgins:	Okay. I’d like to thank everybody for their time this morning and we look forward to talking to you on March 4th. Thank you very much. Bye-bye. Thanks, Tyrone.
Operator:	Thank you, sir. Ladies and gentlemen, thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.