UNITED STATES
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 29, 2009
Chico’s FAS, Inc.
(Exact Name of Registrant as Specified in its Charter)
Florida
(State or Other Jurisdiction of Incorporation)
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| 0-21258
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59-2389435 |
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| (Commission File Number)
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(IRS Employer Identification No.) |
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| 11215 Metro Parkway, Fort Myers, Florida
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33966 |
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| (Address of Principal Executive Offices)
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(Zip code) |
(239) 277-6200
(Registrant’s Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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TABLE OF CONTENTS
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| Item 2.05. |
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Costs Associated with Exit or Disposal Activities. |
On
January 27, 2009, Chico’s FAS, Inc. (the “Company”) committed to certain expense reduction
programs, which includes the elimination of approximately 180 positions, or approximately 11% of
the headquarters employee base. The workforce reduction results from the Company’s ongoing
review of its cost structure in light of continued deterioration in the macroeconomic environment
impacting the retail industry. The workforce reduction action was
accomplished on January 29, 2009.
The Company expects to record after-tax charges of approximately $2.9 million during the
fourth quarter of fiscal 2008 ending January 31, 2009 to cover personnel separation costs in
connection with the workforce reduction. The Company expects this workforce reduction to reduce
payroll and related benefit expenses for the Company by approximately $15 million over the next 12
months.
Information
regarding these expense reduction actions is included in the January 29, 2009 press release attached hereto as Exhibit 99.1.
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| Item 2.06. |
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Material Impairments. |
Furthermore, on January 28, 2009, the Company concluded that a charge for impairment of
goodwill and impairment associated with underperforming stores would need to be recorded in its
financial results for the fourth quarter of fiscal 2008 ending January 31, 2009. The Company
currently anticipates the non-cash impairment charges, net of tax benefit, based upon unaudited,
preliminary year-end estimates, to be in the range of $11.0 million to $14.0 million related to
goodwill and $7.0 million to $9.0 million related to the underperforming stores.
The non-cash impairment charge for goodwill impairment is primarily a result of the Company’s
analysis of goodwill associated with the 2007 acquisition of twelve Minnesota franchise stores and
the non-cash impairment charge associated with underperforming stores results from the Company’s
ongoing analysis of historical and projected individual store performance. The conclusion of this
analysis may result in the eventual closing of as many as 25 stores.
Information regarding these non-cash impairment charges
is included in the January 29, 2009 press release attached hereto as Exhibit 99.1.
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| Item 9.01. |
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Financial Statements and Exhibits. |
(d) Exhibits:
Exhibit 99.1 Chico’s FAS, Inc. Press Release dated January 29, 2009
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