Ceased Operations

9 Months Ended

Oct. 29, 2011

Ceased Operations [Abstract]

Ceased Operations

14. Ceased Operations

     Ceased Tuxedo Rental Distribution Operations

     In late August 2010, a decision was made by management to cease tuxedo rental distribution operations at four of the then ten U.S. facilities that we had used for that purpose. The tuxedo rental distribution operations at these four facilities ceased in November 2010 and were assumed by the remaining U.S. tuxedo distribution facilities, which allows us to perform tuxedo rental distribution requirements more cost effectively. Three of the facilities were converted to hub locations that redistribute tuxedo rental units and retail apparel merchandise to our Men’s Wearhouse, Men’s Wearhouse and Tux and K&G stores within limited geographic areas.

     In fiscal 2010, we recognized retail segment pre-tax costs of $3.1 million for the ceased tuxedo rental distribution operations at these four facilities, including $0.9 million for severance payments, $0.7 million for facility remediation costs and $1.5 million for the write-off of fixed assets. As of October 30, 2010, we had recognized retail segment pre-tax cost of $2.0 million of the total $3.1 million recorded in fiscal 2010 for the ceased tuxedo rental distribution operations. For the three and nine months ended October 29, 2011, we recognized retail segment pre-tax costs of $0.2 million and $0.8 million, respectively, related to the ceased tuxedo rental distribution operations primarily for the write-off of fixed assets and facility remediation costs. These charges are included in “Selling, general and administrative expenses” in our condensed consolidated statement of earnings. Net cash payments of $0.3 million related to the ceased tuxedo rental distribution operations were paid in the nine months ended October 29, 2011. No amounts are included in accrued expenses and other current liabilities at October 29, 2011. We expect to incur additional charges of approximately $20 thousand in connection with the ceased tuxedo rental distribution operations at these four facilities in the fourth quarter of fiscal 2011 for facility remediation costs.

     The following table details information related to the accrued balance recorded during the three months ended October 29, 2011 related to the ceased tuxedo rental distribution operations (in thousands):

Accrued costs at July 30, 2011	$	—
Cost incurred		158
Net cash payments		(88	)
Non-cash charges		(70	)
Accrued costs at October 29, 2011	$	—

     The following table details information related to the accrued balance recorded during the nine months ended October 29, 2011 related to the ceased tuxedo rental distribution operations (in thousands):

Accrued costs at January 29, 2011	$	123
Cost incurred		765
Net cash payments		(313	)
Non-cash charges		(575	)
Accrued costs at October 29, 2011	$	—