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Note 3 - Credit Facility
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6 Months Ended |
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Jul. 02, 2011
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| Line of Credit Facility, Description |
Note
3 – Credit Facility
The
Company has a $50.0 million asset based revolving credit
facility, (referred to as the “Credit Facility”)
with Wells Fargo Capital Finance, LLC (“WFCF”).
The Credit Facility has a term of four years, matures on
October 28, 2014, and is secured by substantially all the
domestic assets of the Company and each of its domestic
subsidiaries. The Credit Facility is designed to provide
working capital and letters of credit that will be used
primarily for the purchase and importation of inventory and
for general corporate purposes.
At
July 2, 2011, there were no outstanding borrowings and
approximately $17.0 million outstanding under letters of
credit. Borrowing availability under the Credit Facility was
approximately $1.1 million at July 2, 2011 and the Company
had approximately $29.4 million of unrestricted cash that was
not included in the availability calculation.
On
May 5, 2011, the Company entered into a Consent to Certain
Asset Sales (the “Consent”) with WFCF. Pursuant
to the Consent, WFCF, as agent under the Credit Facility
consented to the asset sales of Hampshire Designers and
Item-Eyes. See Note 8 – Dispositions and
Discontinued Operations.
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