Impairment of Long-Lived Assets

3 Months Ended

Apr. 28, 2012

Impairment of Long-Lived Assets [Abstract]

IMPAIRMENT OF LONG-LIVED ASSETS

4. IMPAIRMENT OF LONG-LIVED ASSETS

The Company assesses long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of such assets (or asset group) may not be recoverable. Based on management’s review of the historical operating performance, including sales trends, gross margin rates, current cash flows from operations and the projected outlook for each of the Company’s stores, the Company determined that certain stores would not be able to generate sufficient cash flows over the remaining term of the related leases to recover the Company’s investment in the respective stores. As a result, the Company recorded the following non-cash impairment charges related to its retail stores within the accompanying Condensed Consolidated Statements of Operations and Comprehensive Operations, to write-down the carrying value of its long-lived store assets to their estimated fair values.

	For the First Quarter Ended
	(In thousands)
	April 28, 2012		April 30, 2011
Aggregate carrying value of all long-lived assets tested	$	13,497	$	26,009
Less: Impairment charges from continuing operations		1,534		2,017
Less: Impairment charges from discontinued operations		—		371
Aggregate fair value of all long-lived assets tested	$	11,963	$	23,621
Number of stores tested for asset impairment		119		204
Number of stores with asset impairment		25		42

The long-lived assets disclosed above that were written down to their respective fair values consisted primarily of leasehold improvements, furniture, fixtures and equipment. The Company recognized impairment charges of $1.5 million and $2.4 million, respectively, during the quarters ended April 28, 2012 and April 30, 2011. The decrease in the number of stores tested for impairment year-over-year was primarily related to the Company’s recent closure of certain underperforming stores. In addition, based on historical operating performance and the projected outlook for these stores, the Company believes that the remaining asset value of approximately $12.0 million as of April 28, 2012, is recoverable.