Exhibit 10.41

LIMITED WAIVER AND SECOND AMENDMENT TO
FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

                     This LIMITED WAIVER AND SECOND AMENDMENT TO FOURTH AMENDED
AND RESTATED CREDIT AGREEMENT (this “Waiver and Amendment”) is entered into as
of this 31st day of January, 2003 among WILSONS LEATHER HOLDINGS INC., a
Minnesota corporation (“Borrower”), GENERAL ELECTRIC CAPITAL CORPORATION, a
Delaware corporation, as Lender, Term Lender, Swing Line Lender and as Agent
(“Agent”), the Credit Parties signatory hereto and the Lenders signatory hereto.
Unless otherwise specified herein, capitalized terms used in this Waiver and
Amendment shall have the meanings ascribed to them by the Credit Agreement (as
hereinafter defined).

RECITALS

                     WHEREAS, Borrower, certain Credit Parties, Agent and
Lenders have entered into that certain Fourth Amended and Restated Credit
Agreement dated as of April 23, 2002 (as amended, supplemented, restated or
otherwise modified from time to time, the “Credit Agreement”); and

                     WHEREAS, Borrower, the Credit Parties signatories to the
Credit Agreement, the Requisite Lenders and Agent wish to waive and amend
certain provisions of the Credit Agreement, as more fully set forth herein;

                     NOW THEREFORE, in consideration of the mutual covenants
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

Section 1      Limited Waiver.

                     The Agent and the Requisite Lenders hereby waive any breach
or violation of the Credit Agreement (and any resulting Event of Default) which
has occurred solely as a result of the failure to comply with the Minimum EBITDA
covenant set forth in clause (c) of Schedule I to the Credit Agreement from and
including December 1, 2002 through and including January 4, 2003. This limited
waiver shall be limited precisely as written and shall not be deemed or
otherwise construed to constitute a waiver of any Default or Event of Default
arising out of any other failure of the Credit Parties to comply with the terms
of the Credit Agreement.

Section 2      Amendments to the Credit Agreement.

                      Subject to the satisfaction of the conditions precedent
set forth in Section 4 hereof, the parties hereto hereby agree to amend the
Credit Agreement as follows:

                      (a)     The last sentence of Section 1.1(a)(iv) of the
Credit Agreement is hereby amended and restated to read in its entirety as
follows:

 

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                         “In addition, notwithstanding anything to the contrary
contained herein or otherwise, Borrower shall cause (i) the outstanding
principal balance of the Revolving Credit Advances and the Swing Line Loan to be
reduced to, and remain at, zero dollars ($0) for the period from and including
January 3, 2003 through and including March 31, 2003 and (ii) the outstanding
Letter of Credit Obligations to be less than or equal to $20,000,000 at all
times during the period from and including January 3, 2003 through and including
March 31, 2003.”

                      (b)    Clause (ii) of Clause c of Schedule G to the Credit
Agreement is hereby amended and restated to read in its entirety as follows:

                         “(ii) as soon as is available, but not later than
January 15, 2003, a preliminary operating plan for each of the then next three
Fiscal Years and as soon as is available but not later than February 28, 2003 an
operating plan which updates the foregoing preliminary operating plan delivered
on or prior to January 15, 2003,”

Section 3      Representations and Warranties.

                      Borrower and the Credit Parties who are party hereto
represent and warrant that:

                      (a)      the execution, delivery and performance by
Borrower and such Credit Parties of this Waiver and Amendment have been duly
authorized by all necessary corporate action and this Waiver and Amendment is a
legal, valid and binding obligation of Borrower and such Credit Parties
enforceable against Borrower and such Credit Parties in accordance with its
terms, except as the enforcement thereof may be subject to (i) the effect of any
applicable bankruptcy, insolvency, reorganization, moratorium or similar law
affecting creditors’ rights generally and (ii) general principles of equity
(regardless of whether such enforcement is sought in a proceeding in equity or
at law);

                      (b)      each of the representations and warranties
contained in the Credit Agreement is true and correct in all material respects
on and as of the date hereof as if made on the date hereof, except to the extent
that such representations and warranties expressly relate to an earlier date;

                      (c)      neither the execution, delivery and performance
of this Waiver and Amendment nor the consummation of the transactions
contemplated hereby does or shall contravene, result in a breach of, or violate
(i) any provision of Borrower’s or Credit Parties’ certificate or articles of
incorporation or bylaws, (ii) any law or regulation, or any order or decree of
any court or government instrumentality or (iii) indenture, mortgage, deed of
trust, lease, agreement or other instrument to which Borrower, the Credit
Parties or any of their Subsidiaries is a party or by which Borrower, the Credit
Parties or any of their Subsidiaries or any of their property is bound, except
in any such case to the extent such conflict or breach has been waived by a
written waiver document, a copy of which has been delivered to Agent on or
before the date hereof; and

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                      (d)      no Default or Event of Default will exist or
result after giving effect hereto.

Section 4      Conditions to Effectiveness.

                      This Waiver and Amendment will be effective only upon
satisfaction of the following:

                      (a)      Execution and delivery of this Waiver and
Amendment by Borrower, the Credit Parties that are listed on the signature pages
hereto, the Agent and the Requisite Lenders; and

                      (b)      The representations and warranties contained
herein shall be true and correct in all respects.

Section 5      Reference to and Effect Upon the Credit Agreement.

                      (a)      Except as specifically set forth herein, the
Credit Agreement and the other Loan Documents shall remain in full force and
effect and are hereby ratified and confirmed.

                      (b)      The execution, delivery and effectiveness of this
Waiver and Amendment shall not operate as a waiver of any right, power or remedy
of Agent or any Lender under the Credit Agreement or any Loan Document, nor
constitute a waiver of any provision of the Credit Agreement or any Loan
Document, except as specifically set forth herein. Upon the effectiveness of
this Waiver and Amendment, each reference in the Credit Agreement to “this
Agreement”, “hereunder”, “hereof’, “herein” or words of similar import shall
mean and refer to the Credit Agreement as amended hereby.

Section 6      Waiver and Release.

                      In consideration of the foregoing, each of Borrower and
each Credit Party hereby waives, releases and covenants not to sue Agent or any
Lender with respect to any and all claims it may have against Agent or any
Lender, whether known or unknown, arising in tort, by contract or otherwise
prior to the date hereof relating to one or more Loan Documents.

Section 7      Costs and Expenses.

                      As provided in Section 11.3 of the Credit Agreement,
Borrower agrees to reimburse Agent for all fees, costs and expenses, including
the fees, costs and expenses of counsel or other advisors for advice,
assistance, or other representation in connection with this Waiver and
Amendment.

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Section 8      Governing Law.

                      THIS WAIVER AND AMENDMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF ILLINOIS.

Section 9      Headings.

                      Section headings in this Waiver and Amendment are included
herein for convenience of reference only and shall not constitute a part of this
Waiver and Amendment for any other purposes.

Section 10    Counterparts.

                      This Waiver and Amendment may be executed in any number of
counterparts, each of which when so executed shall be deemed an original but all
such counterparts shall constitute one and the same instrument.

Section 11    Confidentiality.

                      The matters set forth herein are subject to Section 11.18
of the Credit Agreement, which is incorporated herein by reference.

[signature page follows]

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                    IN WITNESS WHEREOF, this Waiver and Amendment has been duly
executed as of the date first written above.

              BORROWER:       WILSONS LEATHER HOLDINGS INC.       By:

Title: /s/ Peter G. Michielutti

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Senior Vice President     Revolving Loan Commitment:
$50,000,000 (including $10,000,000
Swing Line Commitment)   GENERAL ELECTRIC CAPITAL
CORPORATION, as Agent, Lender and
Swing Line Lender   Term Loan B Commitment:
$25,000,000   By:

Title: /s/ Donna H. Evans

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Duly Authorized Signatory     Revolving Loan Commitment:
$30,000,000   LASALLE RETAIL FINANCE, a division
of LaSalle Business Credit, as agent for
Standard Federal Bank National
Association, as Lender       By:

Title: /s/ Francis D. O’Connor

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Senior Vice President     Revolving Loan Commitment:
$45,000,000   THE CIT GROUP/BUSINESS CREDIT,
INC., as Lender and Documentation Agent       By:

Title: /s/ Evelyn Kusold

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Assistant Vice President     [Signature Page to Limited Waiver and Second
Amendment]

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            Revolving Loan Commitment:
$45,000,000   WELLS FARGO RETAIL FINANCE LLC,
as Lender and Syndication Agent       By:

Title: /s/ J. Barlow

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Senior Vice President     Revolving Loan Commitment:
$10,000,000   U.S. BANK NATIONAL ASSOCIATION,
as Lender       By:

Title: /s/ Jaqueline Ryan

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Vice President  

[Signature Page to Limited Waiver and Second Amendment]

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                      The undersigned are executing this Waiver and Amendment in
their capacity as Credit Parties:

      Wilsons The Leather Experts Inc.   By:

Title: /s/ Peter G. Michielutti

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Senior Vice President & CFO     Wilsons Center, Inc.   By:

Title: /s/ Peter G. Michielutti

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Senior Vice President & CFO     Rosedale Wilsons, Inc.   By:

Title: /s/ Peter G. Michielutti

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Senior Vice President & CFO     River Hills Wilsons, Inc.   By:

Title: /s/ Peter G. Michielutti

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Senior Vice President & CFO     Bermans The Leather Experts Inc.   By:

Title: /s/ Peter G. Michielutti

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Senior Vice President & CFO  

[Signature Page to Limited Waiver and Second Amendment]

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