Item 1.01 Entry into a Definitive Material Agreement

On September 30, 2008, we entered into a trade finance facility with Ashford Finance and closed this facility on November 11, 2008. The trade finance facility provides for letters of credit (of a maximum term of 120 days) of up to three million dollars ($3,000,000), to enable us to fund the purchase of inventory for our Holiday 2008 and Spring 2009 seasons and for related general working capital purposes. The lines of credit carry an interest rate of Prime rate plus 3%. Ashford will receive an account management fee ranging from 3% to 2.25% based on an escalating scale of the amount borrowed. The lines of credit are secured by our receivables, inventory and related collateral. The Company noted that the line carries credit insurance from Coface to protect us against potential loss of receivables. In addition, Mark Klein, President, is serving as the personal guarantor for the revolving line. To date, no line of credit has been issued.

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Item 7.01. Regulation FD Disclosure.

A copy of the press release describing the transaction referenced herein is furnished as Exhibit 99.1 to this Current Report filed on Form 8-K and is incorporated herein by reference.