7.	Long-term debt:

(a)	Long-term debt consists of the following:


	As of
	March 30, 2013		March 31, 2012
	(In thousands)
Senior secured term loans that are subordinated in lien priority to the Company’s senior secured revolving credit facility and bear interest at an annual rate of the greater of 9.5% per annum or one-month LIBOR based rate plus 6.5% with a four-year term expiring in June 2015.	$	18,000	$	18,000
Obligation under capital lease on land and building, pursuant to a sale-leaseback transaction. The term loan is being amortized using an implicit annual interest rate of 10.74% over the term of the lease of 20 years with a balloon payment related to the land component and is repayable in monthly installments of approximately $165,185 (Cdn$167,762). The balance at March 30, 2013 and March 31, 2012 was Cdn$13,981,000 and Cdn$14,333,000, respectively.		13,767		14,346
Term loan from Investissement Québec, bearing interest at an annual rate of prime plus 5.5%, repayable beginning in April 2012 in 48 equal monthly capital repayments of $205,133 (Cdn$208,333), secured by the assets of the Company. The balance at March 30, 2013 and March 31, 2012 was Cdn$7,708,000 and Cdn$10,000,000, respectively.		7,590		10,009
Obligations under capital leases, at annual interest rates between 6% and 10%, secured by leasehold improvements, furniture, and equipment, maturing at various dates to April 2018.		388		2,289
Cash advance provided by the Company’s controlling shareholder bearing interest at an annual rate of 11%, net of withholding taxes (Note 14(c))		1,500		5,000
Term loan from Investissement Québec, bearing interest at an annual rate of prime plus 3.5%, repayable beginning in May 2009 in 20 monthly capital repayments of $34,462 (Cdn$35,000) and thereafter 40 monthly payments of $54,155 (Cdn$55,000), secured by the assets of the Company and subject to certain financial covenants. The balance at March 30, 2013 and March 31, 2012 was Cdn$660,000 and Cdn$1,320,000, respectively. (b)		650		1,321

		41,895		50,965
Current portion of long-term debt		3,795		5,567

	$	38,100	$	45,398

(b)	The Company must comply with certain financial covenants associated with one of its terms loans with Investissement Quebec reflected in the preceding table. As of March 30, 2013, the Company was in compliance with these financial covenants.

(c)	Future minimum lease payments for capital leases required in the following five years and thereafter are as follows (in thousands):


Year ending March:
2014	$	2,160
2015		2,127
2016		2,093
2017		2,217
2018		2,190
Thereafter		12,410

		23,197
Less imputed interest		9,042

	$	14,155

(d)	Principal payments on long-term debt required in the following five years and thereafter, including obligations under capital leases, are as follows (in thousands):


Year ending March:
2014	$	3,795
2015		3,182
2016		21,224
2017		1,183
2018		1,059
Thereafter		11,452

	$	41,895

(e)	As of March 30, 2013 and March 31, 2012, the Company had $1.7 million and $1.8 million, respectively, of outstanding letters of credit which were provided to certain lenders.

(f)

In December 2000, the Company entered into a capital lease agreement for the Company’s Montreal head office and store pursuant to which the Company leases the building, including the Montreal flagship store, for a term of 20 years ending December 11, 2020. The net annual rental rate was Cdn $1,830,125 (approximately $1.8 million U.S. dollars) for the period that ended on December 11, 2012, and increases on a compounded basis by 10% on each third annual anniversary date thereafter (except for the last two years when no increase will take place). The current net annual rental rate is Cdn$2,013,138 (approximately $2.0 million U.S. dollars). The lease is an absolute triple net lease to the landlord, and the Company is responsible for any and all additional expenses, including, without limitation, taxes and structural expenses. Subject to specific term and conditions, the Company has four options to renew and extend the term of the lease for four further terms of five years each, except for the last option which is five years less eleven days, terminating on November 30, 2040. Subject to specific terms and conditions, the Company also has two options to purchase the premises, which may be exercised no later than six months prior to the end of the fifteenth year of the term of the lease and the end of the twentieth year of the term of the lease, respectively.