1)	entered judgment in favor of the Company against Hubert Guez and his related entity, Apparel Distribution Services, LLC (“ADS”), in the amount of approximately $13 million (including pre-judgment interest);

2)

upheld an aggregate of approximately $7 million of the jury’s verdicts against two other Guez related entities -- Azteca Production International, Inc. (“Azteca”) and Sweet Sportswear, LLC (“Sweet” and, collectively with ADS and Azteca, the “Guez Entities”); however, judgment against these entities was not entered pending the resolution of appeals and, potentially, subsequent proceedings;

3)	upheld the jury’s verdict against all of the cross-claims of the Guez Entities, including without limitation ADS’s and Azteca’s unsuccessful efforts to recover against Unzipped any account balances claimed to be owed, totaling approximately $3.5 million (including interest);

4)

upheld the jury’s verdict in favor of the Company relating to its writedown of the senior subordinated note due 2012, issued by the Company to Sweet in connection with the Company’s acquisition of Unzipped (the “Sweet Note”) for Unzipped’s Fiscal Year 2004 and disallowed its writedown of the Sweet Note for Unzipped’s Fiscal Year 2005. The current balance of the Sweet Note is estimated to be approximately $12 million (including unpaid interest), without regard to offsets or the outcome of appeals. The Company believes that the balance of the Sweet Note will be offset in its entirety by amounts recoverable against Guez and the Guez Entities.

5)

directed the Company to file, on or before November 30, 2007, a petition to recover its fees and costs relating to the Unzipped Litigation. As the prevailing party in the litigation, pursuant to fee-shifting contract provisions among other things, the Company will seek to recover in excess of $10 million against Guez and the Guez Entities. The hearing on that petition is scheduled to occur on March 7, 2008.