Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

(c) On September 4, 2012, the Company announced the appointment of David Stern, 45, as its new Executive Vice President - Chief Financial Officer (principal financial officer), effective September 10, 2012.

Since 2009, Mr. Stern served as the Executive Vice President, Chief Administrative Officer and Cheif Financial Officer of A.C. Moore Arts and Crafts. From 2007 until 2009, Mr. Stern held roles at Coldwater Creek, including Vice President, Financial Planning and Analysis and Corporate Controller. From 2000 to 2007, Mr. Stern was the Chief Financial Officer of Petro Services. Mr. Stern began his career as an internal auditor and gained experience as a financial analyst, accounting manager and corporate controller at several other companies, including Delhaize America, before joining Petro Services.

Mr. Stern will (i) be paid a base salary of $400,000, (ii) be eligible to earn a target annual bonus, pursuant to the terms of the Company's Annual Incentive Bonus Plan, equal to 75% of his base salary upon the achievement of certain predetermined corporate objectives (a prorated portion of such bonus is guaranteed for fiscal 2012) and (iii) participate in the Company's other incentive and welfare and benefit plans made available to executives. As an inducement to join the Company, Mr. Stern will receive restricted stock units valued at $200,000.

As an executive officer of the Company, Mr. Stern will enter into the Company's form of Change of Control and Non Competition Agreements.

A copy of the Company's press release announcing Mr. Stern's appointment is attached to this Current Report as Exhibit 99.1.

(b) William E. Shull III, Executive Vice President - Stores, will cease his employment with the Company effective September 3, 2012.