----

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| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

----

| NEW JERSEY                               | No. 22-2465228        |
|------------------------------------------|--------------------------------------|
| (State or Other Jurisdiction of          | (I.R.S. Employer Identification No.) |
| Incorporation or Organization)           |                                 |
|                                     |                                 |
| One Syms Way, Secaucus, New Jersey       | 07094                                |
| (Address of Principal Executive Offices) | (Zip Code)                           |

|                                    |   | Name of Each Exchange on |
|-----------------------------------------|--------|--------------------------|
| Title of Each class                     |   | Which Registered         |
|                                    |   |                     |
| Common Stock, $0.05 Par Value Per Share |   | NASDAQ                   |

----

----

----

----

|              |                                                                                                               | PAGE   |
|-------------------|--------------------------------------------------------------------------------------------------------------------|--------|
| PART  I |
|              |                                                                                                               |   |
| Item 1.      | Business                                                                                                           | 2      |
| Item 1A.     | Risk Factors                                                                                                       | 5      |
| Item 1B.     | Unresolved Staff Comments                                                                                          | 8      |
| Item 2.      | Properties                                                                                                         | 8      |
| Item 3.      | Legal Proceedings                                                                                                  | 10     |
| Item 4.      | Reserved                                                                                                           | 10     |
|              |                                                                                                               |   |
| PART II      |
|              |                                                                                                               |   |
| Item 5.      | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 11     |
| Item 6.      | Selected Financial Data                                                                                            | 12     |
| Item 7.      | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 12     |
| Item 7A.     | Quantitative and Qualitative Disclosures About Market Risk                                                         | 19     |
| Item 8.      | Financial Statements and Supplementary Data                                                                        | 20     |
| Item 9.      | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               | 20     |
| Item 9A.     | Controls and Procedures                                                                                            | 20     |
| Item 9B.     | Other Information                                                                                                  | 22     |
|              |                                                                                                               |   |
| PART III     |
|              |                                                                                                               |   |
| Item 10.     | Directors, Executive Officers and Corporate  Governance                                                  | 22     |
| Item 11.     | Executive Compensation                                                                                             | 22     |
| Item 12.     | Security Ownership of Certain Beneficial Owners And Management and Related Stockholder Matters                     | 22     |
| Item 13.     | Certain Relationships, Related Transactions and Director Independence                                              | 23     |
| Item 14.     | Principal Accountant Fees and Services                                                                             | 23     |
|              |                                                                                                               |   |
| PART IV      |
|              |                                                                                                               |   |
| Item 15.     | Exhibits and Financial Statement Schedules                                                                         | 23     |
| Signatures        | 25                                                                                                                 |

----

| Item 1. | BUSINESS |
|---------|----------|

| Women’s dresses, suits, separates and accessories |   |   | 46  | % |
|---------------------------------------------------------|--------|--------|-----|---|
| Men’s tailored clothes and haberdashery           |   |   | 38  | % |
| Children’s apparel                                |   |   | 5   | % |
| Luggage, domestics and fragrances                       |   |   | 6   | % |
| Shoes                                                   |   |   | 5   | % |
| Total                                                   |   |   | 100 | % |

----

----

----

| Item 1A. | RISK FACTORS |
|----------|--------------|

----

----

----

| Item 1B.  | UNRESOLVED STAFF COMMENTS |
|----------------|---------------------------|

| Item 2. | PROPERTIES |
|---------|------------|

| Location            |   |   | Leaseor Own |   |   | TotalSq Feet |      |   | Retail &Ancillary |   |      | Warehouse& Office |   |   | AdditionalSpace |   |
|---------------------|--------|--------|------------------|--------|--------|-------------------|-----------|--------|----------------------------|--------|-----------|----------------------------|--------|--------|-----------------|--------|
|                |   |   |             |   |   |              |      |   |                       |   |      |                       |   |   |            |   |
| Fairfield, CT       |   |   | Own (1)          |   |   |              | 43,000    |   |                       |   | 43,000    |                       |   |   | -               |   |   |   | - |   |
| Berlin, CT          |   |   | Lease            |   |   |              | 38,000    |   |                       |   | 38,000    |                       |   |   | -               |   |   |   | - |   |
| Ft. Lauderdale, FL  |   |   | Own              |   |   |              | 55,000    |   |                       |   | 55,000    |                       |   |   | -               |   |   |   | - |   |
| Kendall, FL         |   |   | Lease            |   |   |              | 40,000    |   |                       |   | 40,000    |                       |   |   | -               |   |   |   | - |   |
| Miami, FL           |   |   | Own              |   |   |              | 53,000    |   |                       |   | 53,000    |                       |   |   | -               |   |   |   | - |   |
| Tampa, FL           |   |   | Own              |   |   |              | 77,000    |   |                       |   | 48,000    |                       |   |   | -               |   |   |   | 29,000 | (a)(d) |
| West Palm Beach, FL |   |   | Own              |   |   |              | 112,000   |   |                       |   | 54,000    |                       |   |   | -               |   |   |   | 58,000 | (b) |
| Norcross, GA        |   |   | Own              |   |   |              | 69,000    |   |                       |   | 69,000    |                       |   |   | -               |   |   |   | - |   |
| Marietta, GA        |   |   | Own              |   |   |              | 77,000    |   |                       |   | 48,000    |                       |   |   | -               |   |   |   | 29,000 | (b) |
| Addison, IL         |   |   | Own              |   |   |              | 68,000    |   |                       |   | 68,000    |                       |   |   | -               |   |   |   | - |   |
| Rockville, MD       |   |   | Lease            |   |   |              | 71,000    |   |                       |   | 71,000    |                       |   |   | -               |   |   |   | - |   |
| Norwood, MA         |   |   | Lease            |   |   |              | 43,000    |   |                       |   | 43,000    |                       |   |   | -               |   |   |   | - |   |
| Southfield, MI      |   |   | Own              |   |   |              | 60,000    |   |                       |   | 50,000    |                       |   |   | -               |   |   |   | 10,000 | (c) |
| Cherry Hill, NJ     |   |   | Own              |   |   |              | 150,000   |   |                       |   | 66,000    |                       |   |   | 39,000          |   |   |   | 45,000 | (c) |
| Paramus, NJ         |   |   | Own              |   |   |              | 77,000    |   |                       |   | 73,000    |                       |   |   | -               |   |   |   | 4,000 | (d) |
| Secaucus, NJ        |   |   | Own (2)          |   |   |              | 340,000   |   |                       |   | 29,000    |                       |   |   | 311,000         | (e)    |   |   | - |   |
| Fords, NJ           |   |   | Lease            |   |   |              | 36,000    |   |                       |   | 36,000    |                       |   |   | -               |   |   |   | - |   |
| Williamsville, NY   |   |   | Own              |   |   |              | 102,000   |   |                       |   | 46,000    |                       |   |   | -               |   |   |   | 56,000 | (a) |
| Elmsford, NY        |   |   | Own (3)          |   |   |              | 143,000   |   |                       |   | 59,000    |                       |   |   | -               |   |   |   | 84,000 | (d) |
| New York, NY        |   |   | Lease            |   |   |              | 64,000    |   |                       |   | 64,000    |                       |   |   | -               |   |   |   | - |   |
| New York, NY        |   |   | Own              |   |   |              | 57,000    |   |                       |   | 57,000    |                       |   |   | -               |   |   |   | - |   |
| Westbury, NY        |   |   | Own              |   |   |              | 92,000    |   |                       |   | 92,000    |                       |   |   | -               |   |   |   | - |   |
| Berwyn, PA          |   |   | Own              |   |   |              | 69,000    |   |                       |   | 55,000    |                       |   |   | -               |   |   |   | 14,000 | (a) |
| Houston, TX         |   |   | Own              |   |   |              | 42,000    |   |                       |   | 42,000    |                       |   |   | -               |   |   |   | - |   |
| Falls Church, VA    |   |   | Lease            |   |   |              | 49,000    |   |                       |   | 49,000    |                       |   |   | -               |   |   |   | - |   |
| Aventura, FL        |   |   | Lease            |   |   |              | 42,000    |   |                       |   | 42,000    |                       |   |   | -               |   |   |   | - |   |
| Chicago, IL         |   |   | Lease            |   |   |              | 61,000    |   |                       |   | 61,000    |                       |   |   | -               |   |   |   | - |   |
| Chicago, IL         |   |   | Lease            |   |   |              | 63,000    |   |                       |   | 63,000    |                       |   |   | -               |   |   |   | - |   |
| Boston, MA          |   |   | Lease            |   |   |              | 38,000    |   |                       |   | 38,000    |                       |   |   | -               |   |   |   | - |   |
| Newton, MA          |   |   | Lease(4)         |   |   |              | 48,000    |   |                       |   | 48,000    |                       |   |   | -               |   |   |   | - |   |
| Watertown, MA       |   |   | Lease            |   |   |              | 33,000    |   |                       |   | 33,000    |                       |   |   | -               |   |   |   | - |   |
| Peabody, MA         |   |   | Lease            |   |   |              | 44,000    |   |                       |   | 44,000    |                       |   |   | -               |   |   |   | - |   |
| Braintree, MA       |   |   | Lease            |   |   |              | 38,000    |   |                       |   | 38,000    |                       |   |   | -               |   |   |   | - |   |
| Saugus, MA          |   |   | Lease            |   |   |              | 31,000    |   |                       |   | 31,000    |                       |   |   | -               |   |   |   | - |   |
| Rockville, MD       |   |   | Lease            |   |   |              | 38,000    |   |                       |   | 38,000    |                       |   |   | -               |   |   |   | - |   |
| Baltimore, MD       |   |   | Lease            |   |   |              | 31,000    |   |                       |   | 31,000    |                       |   |   | -               |   |   |   | - |   |
| Manhasset, NY       |   |   | Lease            |   |   |              | 60,000    |   |                       |   | 60,000    |                       |   |   | -               |   |   |   | - |   |
| Flushing, NY        |   |   | Lease            |   |   |              | 29,000    |   |                       |   | 29,000    |                       |   |   | -               |   |   |   | - |   |
| New York, NY        |   |   | Lease            |   |   |              | 23,000    |   |                       |   | 23,000    |                       |   |   | -               |   |   |   | - |   |
| New York, NY        |   |   | Lease            |   |   |              | 93,000    |   |                       |   | 93,000    |                       |   |   | -               |   |   |   | - |   |
| New York, NY        |   |   | Lease            |   |   |              | 32,000    |   |                       |   | 32,000    |                       |   |   | -               |   |   |   | - |   |
| Columbus, OH        |   |   | Lease            |   |   |              | 71,000    |   |                       |   | 71,000    |                       |   |   | -               |   |   |   | - |   |
| Warrensville, OH    |   |   | Lease            |   |   |              | 38,000    |   |                       |   | 38,000    |                       |   |   | -               |   |   |   | - |   |
| Washington, DC      |   |   | Lease            |   |   |              | 38,000    |   |                       |   | 38,000    |                       |   |   | -               |   |   |   | - |   |
| Washington, DC      |   |   | Lease            |   |   |              | 45,000    |   |                       |   | 45,000    |                       |   |   | -               |   |   |   | - |   |
| Washington, DC      |   |   | Lease            |   |   |              | 43,000    |   |                       |   | 43,000    |                       |   |   | -               |   |   |   | - |   |
| Atlanta, GA         |   |   | Lease            |   |   |              | 49,000    |   |                       |   | 49,000    |                       |   |   | -               |   |   |   | - |   |
| Auburn, MA          |   |   | Lease            |   |   |              | 457,000   |   |                       |   | -         |                       |   |   | 457,000         |   |   |   | - |   |
| Landover, MD        |   |   | Lease            |   |   |              | 22,000    |   |                       |   | -         |                       |   |   | 22,000          |   |   |   | - |   |
|                |   |   |             |   |   |              | 3,494,000 |   |                       |   | 2,336,000 |                       |   |   | 829,000         |   |   |   | 329,000 |   |

----

| (1) | Ground lease dated June 2, 2003 expiring November 3, 2036. |
|-----|------------------------------------------------------------|

| (2) | Ground lease dated June 1, 1977 expiring May 31, 2276. |
|-----|--------------------------------------------------------|

| (3) | Ground lease dated January 1, 1969 and 1970 expiring May 31, 2068 and December 31, 2068. |
|-----|------------------------------------------------------------------------------------------|

| (4) | This store location consists of two leases. |
|-----|---------------------------------------------|

| (a) | Additional space within building currently leased to third parties. |
|-----|---------------------------------------------------------------------|

| (b) | Additional space consists of a retail strip mall with various tenants in various stages of lease life, including vacant space which is actively marketed by property managers. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Additional space currently vacant and available for rent. |
|-----|-----------------------------------------------------------|

| (d) | Additional space consists of third party building on Company land pursuant to ground lease. |
|-----|---------------------------------------------------------------------------------------------|

| (e) | Of the 311,000 square feet, approximately 34,000 square feet are office space and 277,000 square feet are warehouse and distribution space.  With the consolidation of distribution center functions into the Company’s Massachusetts distribution center, much of the New Jersey distribution center is vacant. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| CalendarPeriod        |   |   | ExpiringYear |   |   | Leases withRenewal Options |   |   | Range in YearsOf Option Periods |   |
|-----------------------|--------|--------|--------------|--------|--------|--------------------------------------|--------|--------|-----------------------------------------------------|--------|
| 2011                  |   |   | 4            |   |   | 0                                    |   |   | -                                                   |   |
| 2012                  |   |   | 2            |   |   | 2                                    |   |   | 1-5 years                                           |   |
| 2013                  |   |   | 2            |   |   | 2                                    |   |   | 5 years                                             |   |
| 2014                  |   |   | 0            |   |   | 0                                    |   |   | -                                                   |   |
| 2015                  |   |   | 2            |   |   | 0                                    |   |   | -                                                   |   |
| 2016 & thereafter |   |   | 21           |   |   | 13                                   |   |   | 5 – 10 years                                  |   |

----

| Item 3.  | LEGAL PROCEEDINGS |
|---------------|-------------------|

| Item 4. | RESERVED |
|---------|----------|

----

| Item 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
|---------|--------------------------------------------------------------------------------------------------------------------|

|           |   | Year ended February 26, 2011 |   |   | Year ended February 27, 2010 |   |
|----------------|--------|--------------------------------------------------|--------|--------|--------------------------------------------------|--------|
|           |   | High                                             |   |   | Low                                              |   |   | High |   |   | Low |   |
| First Quarter  |   | $                                                | 10.68  |   |                                             | $      | 6.80 |   |   | $ | 8.61 |   |   | $ | 4.22 |   |
| Second Quarter |   |                                             | 7.84   |   |                                             |   | 7.00 |   |   |   | 8.57 |   |   |   | 5.90 |   |
| Third Quarter  |   |                                             | 8.49   |   |                                             |   | 6.91 |   |   |   | 8.29 |   |   |   | 6.57 |   |
| Fourth Quarter |   |                                             | 7.31   |   |                                             |   | 6.11 |   |   |   | 10.00 |   |   |   | 7.00 |   |

|   | As of April 18, 2011, there were approximately 310 record holders of the Common Stock. |
|--------|----------------------------------------------------------------------------------------|

|   |  No dividends were paid in fiscal 2010 or fiscal 2009. Payment of dividends is within the discretion of the Company’s Board of Directors and depends upon various factors including the earnings, capital requirements and financial condition of the Company (see Note 4 to Notes to Consolidated Financial Statements regarding covenants in the Company’s bank credit facility). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Below is a graph comparing the cumulative total shareholders’ return on the Common Stock for the last five fiscal years (beginning February 25, 2006 and ending February 25, 2011, the last trading day for Fiscal 2010) with the cumulative total return of the Wilshire 5000 Index and the S&P Retail Composite Index over the same period (assuming (i) the investment of $100 on February 27, 2006 in the Common Stock and in each of these two Indexes, (ii) reinvestment of all dividends and (iii) no payment of brokerage or other commissions or fees). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item 6. | SELECTED FINANCIAL DATA |
|---------|-------------------------|

|                                        |   | Fiscal Year Ended                                       |    |
|---------------------------------------------|--------|-------------------------------------------------------------------|---------|
|                                        |   | February 26,2011                                             |    |   | February 27,2010 (1) |   |   | February 28,2009 |   |   | March 1,2008 |   |   | March 3,2007 |   |
|                                        |   | (in thousands, except per share amounts) |    |
| Statement of Operations data:               |   |                                                              |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales                                   |   | $                                                                 | 445,133 |   |   | $ | 377,309 |   |   | $ | 242,000 |   |   | $ | 267,149 |   |   | $ | 281,178 |   |
| Net income (loss) from operations (2)       |   |                                                              | (50,380 | ) |   |   | (4,842 | ) |   |   | (3,993 | ) |   |   | 2,225 |   |   |   | 14,064 |   |
| Net income (loss)                           |   |                                                              | (32,857 | ) |   |   | 8,308 |   |   |   | (3,423 | ) |   |   | 807 |   |   |   | 9,548 |   |
| Net income (loss) per share – basic   |   | $                                                                 | (2.27   | ) |   |   | 0.57 |   |   |   | (0.23 | ) |   |   | 0.06 |   |   |   | 0.66 |   |
| Dividends paid                              |   |                                                              | -       |   |   |   | - |   |   |   | - |   |   |   | 8,820 |   |   |   | - |   |
| Net income (loss) per share – diluted |   | $                                                                 | (2.27   | ) |   |   | 0.57 |   |   |   | (0.23 | ) |   |   | 0.05 |   |   |   | 0.65 |   |
| Balance Sheet data:                         |   |                                                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Working capital                             |   | $                                                                 | 31,563  |   |   | $ | 52,798 |   |   | $ | 43,215 |   |   | $ | 57,090 |   |   | $ | 67,431 |   |
| Total assets                                |   |                                                              | 270,774 |   |   |   | 269,079 |   |   |   | 215,123 |   |   |   | 229,629 |   |   |   | 239,559 |   |
| Long-term liabilities                       |   |                                                              | 41,421  |   |   |   | 11,418 |   |   |   | 840 |   |   |   | 1,178 |   |   |   | 1,548 |   |
| Shareholders’ equity                  |   |                                                              | 160,979 |   |   |   | 195,032 |   |   |   | 186,043 |   |   |   | 192,135 |   |   |   | 202,069 |   |

| Item 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

----

----

----

----

----

----

|   | (i) | No default exists under the Credit Agreement; |
|--------|-----|-----------------------------------------------|

|   | (ii) | After giving effect to the contemplated transaction, Average Daily Availability for each month during the 12 months following such transaction be at least equal to 30% of the Loan Cap; and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | The consolidated fixed charge coverage ratio, after giving pro forma effect to such transaction for the 12 months prior to such transaction be at least 1.2:1.0. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                               |   | Payments Due by Period |        |
|------------------------------------|--------|---------------------------------------|-------------|
|                               |   |                                  |        |   | Less than |   |   |   |   |   |   |   |   | More than |   |
|                               |   | Total                                 |        |   | 1 year |   |   | 2-3 years |   |   | 4-5 years |   |   | 5 years |   |
| Contractual Obligations            |   |                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Leases                   |   | $                                     | 371,309,000 |   |   | $ | 38,240,000 |   |   | $ | 76,169,000 |   |   | $ | 73,983,000 |   |   | $ | 182,917,000 |   |
| Revolving Credit Facility (1)      |   |                                  | 30,192,000  |   |   |   | - |   |   |   | 30,192,000 |   |   |   | - |   |   |   | - |   |
| Total Contractual Cash Obligations |   | $                                     | 401,501,000 |   |   | $ | 38,240,000 |   |   | $ | 106,361,000 |   |   | $ | 73,983,000 |   |   | $ | 182,917,000 |   |

|   | (1) | The facility bears interest at various rates depending on availability under formula.  As of February 26, 2011, the interest rate on the facility was Prime +2.25% or LIBOR +3.25%, which equates to 5.50% and 3.51%, respectively. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         |   | Amount of Commitment Expiration Per Period |       |
|------------------------------|--------|---------------------------------------------------------------------|------------|
|                         |   | Total Amounts                                                       |       |   | Within |   |   |   |   |   |   |   |   | After 5 |   |
|                         |   | Committed                                                           |       |   | 1 year |   |   | 2-3 years |   |   | 4-5 years |   |   | Years |   |
| Other Commercial Commitments |   |                                                                |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Lines of Credit              |   | $                                                                   | -          |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Letters of Credit            |   |                                                                | 10,098,000 |   |   |   | 10,098,000 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                         |   |                                                                |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Commercial Commitments |   | $                                                                   | 10,098,000 |   |   | $ | 10,098,000 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |

|   | The Company has no off-balance sheet arrangements (as defined in Item 303 of Regulation S-K). |
|--------|-----------------------------------------------------------------------------------------------|

----

| Item 9.  | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE – |
|---------------|----------------------------------------------------------------------------------------------|

|   | (a) | Evaluation of Disclosure Controls and Procedures |
|--------|-----|--------------------------------------------------|

|   | (b) | Management’s Report on Internal Control Over Financial Reporting |
|--------|-----|------------------------------------------------------------------------|

----

| (c) | Report of Independent Registered Public Accounting Firm |
|-----|---------------------------------------------------------|

----

|                                                       |   | COLUMN (A)                                                              |   |   | COLUMN (B)                                                           |   |   | COLUMN (C)                                                                                                                                                                      |   |
|------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                       |   | Securities to beissued uponexercise ofoutstandingOptions |   |   | Weighted averageexercised price ofoutstanding options |   |   | Securities remaining availablefor future issuances underequity compensation plans(excluding securities reflectedin Column (A) |   |
| Plan Category:                                             |   |                                                                         |   |   |                                                                      |   |   |                                                                                                                                                                                 |   |
| Equity compensation plans approved by security holders     |   |                                                                         | 97,500 |   |                                                                      | $      | 15.01  |                                                                                                                                                                                 |   |   | - |   |
| Equity compensation plans not approved by security holders |   |                                                                         | -      |   |                                                                      |   | -      |                                                                                                                                                                                 |   |   | - |   |
| Total                                                      |   |                                                                         | 97,500 |   |                                                                      | $      | 15.01  |                                                                                                                                                                                 |   |   | - |   |

----

|                                                                                                 | PAGE NUMBER |
|------------------------------------------------------------------------------------------------------|------------------|
| (a)(1)       Financial Statements filed as part of this Annual Report: |             |
|                                                                                                 |             |
|   Report of Independent Registered Public Accounting Firm                                  | F-1              |
|   Consolidated Balance Sheets                                                                   | F-2              |
|   Consolidated Statements of Operations                                                         | F-3              |
|   Consolidated Statements of Shareholders’ Equity                                         | F-4              |
|   Consolidated Statements of Cash Flows                                                         | F-5              |
|   Notes to Consolidated Financial Statements                                                    | F-6              |

|  (a)(2) | List of Financial Statement Schedules filed as part of this Annual Report: |
|--------------|----------------------------------------------------------------------------|

|   | Report of Independent Registered Public Accounting Firm on Schedule II. |
|--------|-------------------------------------------------------------------------|

|   | Schedule II:  Valuation and qualifying accounts |
|--------|-----------------------------------------------------------|

|   | Schedules, other than the one listed above, are omitted because they are not applicable, or not required, or because the required information is included in the financial statements or notes thereto. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)(3) | List of Exhibits: |
|--------|-------------------|

|   | The following exhibits that are marked with an asterisk are filed as part of this Annual Report, the following exhibits that are marked with a double asterisk are submitted with this Annual Report and the other exhibits set forth below are incorporated by reference from (i) the Company’s Registration Statement on Form S-1 under the Securities Act of 1933 (Registration No. 2-85554) filed August 2, 1983 and declared effective September 23, 1983 (the “Registration Statement”) or (ii) where indicated, the Company’s reports on Form 8-K, Form 10-Q or Form 10-K or the Company’s Proxy Statement (Commission File No. 1-8564). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.1 | Purchase Agreement, dated as of June 18, 2009, by and among SYL, LLC, a wholly owned subsidiary of Syms Corp, Filene's Basement, Inc. and FB Leasing Services (exhibit 10.1 to Current Report on Form 8-K dated June 24, 2009). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2*+ | Purchase and Sale Agreement, dated as of February 28, 2011, with Hines Interests Limited Partnership, a Delaware limited partnership, as Purchaser, for the sale of property located at 1900 Chapman Avenue, Rockville, Maryland. |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3.1* | Certificate of Incorporation of Syms Corp and amendment to the Certificate of Incorporation. |
|------|----------------------------------------------------------------------------------------------|

| 3.2 | Amended and Restated By-laws of Syms Corp (exhibit 3.1 to Current Report on Form 8-K dated January 12, 2009). |
|-----|---------------------------------------------------------------------------------------------------------------|

| 4.1 | Specimen Certificate of Common Stock as filed in the Registration Statement. |
|-----|------------------------------------------------------------------------------|

| 10.1 | Ground Lease at One Emerson Lane, Township of Secaucus, Hudson County, New Jersey Assignment and Assumption of Ground Lease, dated May 8, 1986, to Registrant (exhibit 28.1 to Current Report on Form 8-K dated May 1986) |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4 | Syms Corp 2005 Stock Option Plan, as amended (exhibit 10.4 to Current Report on Form 8-K dated August 5, 2005) |
|------|----------------------------------------------------------------------------------------------------------------|

| 10.4.1 | Form of Nonqualified Stock Option Award Agreement for 2005 Stock Option Plan (exhibit 10.1 to Current Report on Form 8-K dated August 5, 2005) |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.4.2 | Form of Incentive Option Award for 2005 Stock Option Plan (exhibit 10.2 to Current Report on Form 8-K dated August 5, 2005) |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

| 10.4.3 | Form of Restricted Stock Award for 2005 Stock Option Plan (exhibit 10.3 to Current Report on Form 8-K dated August 5, 2005) |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

| 10.5*+ | Credit Agreement, dated as of August 27, 2009, by and among Syms Corp, SYL LLC, the guarantors party thereto from time to time, the lenders party thereto from time to time and  Bank of America, N.A., as administrative agent, collateral agent and letter of credit issuer (the “Credit Agreement”) (re-filed; formerly filed as exhibit 10.1 to Current Report on Form 8-K dated September 1, 2009) |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.6 | First Amendment to the Credit Agreement, dated as of January 7, 2011 (exhibit 10.1 to the Registrant’s Current Report on Form 8-K dated January 7, 2011) |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7* | Second Amendment to the Credit Agreement, dated as of March 8, 2011 |
|-------|---------------------------------------------------------------------|

| 21.1* | List of Subsidiaries |
|-------|----------------------|

| 23.1* | Consent of BDO USA, LLP |
|-------|-------------------------|

| 31.1* | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of  2002 |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2* | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1** | Certification of Chief Executive Officer pursuant to Rule 13a-14(b) under the Securities and Exchange Act of 1934 and 18.U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2** | Certification of Chief Financial Officer pursuant to Rule 13a-14(b) under the Securities and Exchange Act of 1934 and 18.U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| +  | Portions of this exhibit have been omitted pursuant to a request for confidential treatment. |
|---------|----------------------------------------------------------------------------------------------|

----

| SYMS CORP                     |                                 |
|-------------------------------|--------------------------------------|
|                          |                                 |   |
| By:                           | /s/ Marcy Syms                       |   |
|                          | Marcy Syms                           |   |
|                          | Chairman and Chief Executive Officer |   |
|                          |                                 |   |
| Date:  May 13, 2011 |                                 |

| Signature                           |   | Title                                          |   | Date         |
|-------------------------------------|--------|------------------------------------------------|--------|--------------|
|                                |   |                                           |   |         |
| /s/ Marcy Syms                      |   | Chairman of the Board/ Chief Executive Officer |   | May 13, 2011 |
| Marcy Syms                          |   | and Director (Principal executive officer)     |   |         |
|                                |   |                                           |   |         |
| /s/ Seth Udasin                     |   | Chief Financial Officer                        |   | May 13, 2011 |
| Seth Udasin                         |   | (Principal financial and accounting officer)   |   |         |
|                                |   |                                           |   |         |
| /s/ Bernard  H. Tenenbaum |   | Director                                       |   | May 13, 2011 |
| Bernard H. Tenenbaum                |   |                                           |   |         |
|                                |   |                                           |   |         |
| /s/ Thomas E. Zanecchia             |   | Director                                       |   | May 13, 2011 |
| Thomas E. Zanecchia                 |   |                                           |   |         |
|                                |   |                                           |   |         |
| /s/ Henry M. Chidgey                |   | Director                                       |   | May 13, 2011 |
| Henry M. Chidgey                    |   |                                           |   |         |
|                                |   |                                           |   |         |
| /s/ Beth Bronner                    |   | Director                                       |   | May 13, 2011 |
| Beth Bronner                        |   |                                           |   |         |

----

| /s/ BDO USA, LLP   |   |
|--------------------|--------|
|               |   |
| BDO USA, LLP       |   |
| New York, New York |   |
| May 13, 2011       |   |

| Fiscal years ended February 26, 2011, February 27, 2010 and February 28, 2009 |
|-------------------------------------------------------------------------------|

|                                   |   |                                   |      |   | Additions                                                                  |   |      |                               |   |   |       |   |
|----------------------------------------|--------|----------------------------------------|-----------|--------|----------------------------------------------------------------------------|--------|-----------|------------------------------------|--------|--------|------------|--------|
|                                   |   | Balance atbeginningof period |      |   | Charged againstrevenues or tocosts & expenses |   |      | Charged toother accounts |   |   | Deductions |   |   | Balance atend of period |   |
|                                   |   |                                   |      |   |                                                                       |   |      |                               |   |   |       |   |   |   |   |
| Reserve for inventory obsolescence (1) |   |                                   |      |   |                                                                       |   |      |                               |   |   |       |   |   |   |   |
|                                   |   |                                   |      |   |                                                                       |   |      |                               |   |   |       |   |   |   |   |
| Fiscal 2008                            |   |                                   | 2,820,000 |   |                                                                       |   | 914,000   |                               |   |   | -          |   |   |   | (1,538,000 | ) |   |   | 2,196,000 |   |
| Fiscal 2009                            |   |                                   | 2,196,000 |   |                                                                       |   | 2,304,313 |                               |   |   | -          |   |   |   | (99,000 | ) |   |   | 4,401,313 |   |
| Fiscal 2010                            |   |                                   | 4,401,313 |   |                                                                       |   | 7,428,200 |                               |   |   |       |   |   |   | (1,222,080 | ) |   |   | 10,607,433 |   |
|                                   |   |                                   |      |   |                                                                       |   |      |                               |   |   |       |   |   |   |   |   |   |   |   |   |
| Deferred tax valuation allowance       |   |                                   |      |   |                                                                       |   |      |                               |   |   |       |   |   |   |   |   |   |   |   |   |
|                                   |   |                                   |      |   |                                                                       |   |      |                               |   |   |       |   |   |   |   |   |   |   |   |   |
| Fiscal 2008                            |   |                                   | -         |   |                                                                       |   | -         |                               |   |   | -          |   |   |   | - |   |   |   | - |   |
| Fiscal 2009                            |   |                                   | -         |   |                                                                       |   | -         |                               |   |   | 346,000    |   |   |   | - |   |   |   | 346,000 |   |
| Fiscal 2010                            |   |                                   | 346,000   |   |                                                                       |   | -         |                               |   |   | 1,154,000  |   |   |   | - |   |   |   | 1,500,000 |   |

|   | (1) | Reflects adjustment of obsolete or out-of-season merchandise inventories to realizable value.  Additions represent increases to the reserve and deductions represent decreases to the reserve based on quarterly assessments of the reserve. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| /s/ BDO USA, LLP   |   |
|--------------------|--------|
|               |   |
| BDO USA, LLP       |   |
| New York, New York |   |
| May 13, 2011       |   |

----

| Consolidated Balance Sheets             |
|-----------------------------------------|
| (In thousands except per share amounts) |

|                                                                                                                                                                                                                                       |   | February 26, |    |   | February 27, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                                                                       |   | 2011              |    |   | 2010              |   |
| ASSETS                                                                                                                                                                                                                                     |   |              |    |   |              |   |
| CURRENT ASSETS:                                                                                                                                                                                                                            |   |              |    |   |              |   |
| Cash and cash equivalents                                                                                                                                                                                                                  |   | $                 | 2,298   |   |              | $      | 2,049 |   |
| Receivables                                                                                                                                                                                                                                |   |              | 2,619   |   |              |   | 3,195 |   |
| Merchandise inventories - net                                                                                                                                                                                                              |   |              | 76,595  |   |              |   | 82,234 |   |
| Deferred income taxes                                                                                                                                                                                                                      |   |              | 9,180   |   |              |   | 5,912 |   |
| Assets held for sale                                                                                                                                                                                                                       |   |              | 1,900   |   |              |   | 14,392 |   |
| Prepaid expenses and other current assets                                                                                                                                                                                                  |   |              | 7,345   |   |              |   | 7,645 |   |
| TOTAL CURRENT ASSETS                                                                                                                                                                                                                       |   |              | 99,937  |   |              |   | 115,427 |   |
|                                                                                                                                                                                                                                       |   |              |    |   |              |   |   |   |
| PROPERTY AND EQUIPMENT - Net                                                                                                                                                                                                               |   |              | 117,200 |   |              |   | 118,539 |   |
| DEFERRED INCOME TAXES                                                                                                                                                                                                                      |   |              | 37,086  |   |              |   | 18,113 |   |
| BUILDING AND AIR RIGHTS                                                                                                                                                                                                                    |   |              | 9,134   |   |              |   | 9,134 |   |
| OTHER ASSETS                                                                                                                                                                                                                               |   |              | 7,417   |   |              |   | 7,866 |   |
| TOTAL ASSETS                                                                                                                                                                                                                               |   | $                 | 270,774 |   |              | $      | 269,079 |   |
|                                                                                                                                                                                                                                       |   |              |    |   |              |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                                                                       |   |              |    |   |              |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                                                                       |   |              |    |   |              |   |   |   |
| Accounts payable                                                                                                                                                                                                                           |   | $                 | 41,701  |   |              | $      | 47,356 |   |
| Accrued expenses                                                                                                                                                                                                                           |   |              | 21,114  |   |              |   | 9,945 |   |
| Obligations to customers                                                                                                                                                                                                                   |   |              | 5,559   |   |              |   | 5,328 |   |
| TOTAL CURRENT LIABILITIES                                                                                                                                                                                                                  |   |              | 68,374  |   |              |   | 62,629 |   |
|                                                                                                                                                                                                                                       |   |              |    |   |              |   |   |   |
| LONG TERM DEBT                                                                                                                                                                                                                             |   |              | 30,192  |   |              |   | 8,402 |   |
| OTHER LONG TERM LIABILITIES                                                                                                                                                                                                                |   |              | 11,229  |   |              |   | 3,016 |   |
|                                                                                                                                                                                                                                       |   |              |    |   |              |   |   |   |
| SHAREHOLDERS' EQUITY                                                                                                                                                                                                                       |   |              |    |   |              |   |   |   |
| Preferred stock, par value $100 per share. Authorized 1,000 shares; none outstanding                                                                                                                                                       |   |              | -       |   |              |   | - |   |
| Common stock, par value $0.05 per share. Authorized 30,000 shares; 14,448 shares outstanding (net of 4,448 treasury shares) as of February 26, 2011, and 14,598 shares outstanding (net of 4,298 treasury shares) as of February 27, 2010. |   |              | 800     |   |              |   | 800 |   |
| Additional paid-in capital                                                                                                                                                                                                                 |   |              | 21,605  |   |              |   | 21,605 |   |
| Treasury stock                                                                                                                                                                                                                             |   |              | (47,110 | )      |              |   | (45,903 | ) |
| Accumulated Other Comprehensive Income                                                                                                                                                                                                     |   |              | (1,480  | )      |              |   | (1,491 | ) |
| Retained earnings                                                                                                                                                                                                                          |   |              | 187,164 |   |              |   | 220,021 |   |
| TOTAL SHAREHOLDERS' EQUITY                                                                                                                                                                                                                 |   |              | 160,979 |   |              |   | 195,032 |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                                                                 |   | $                 | 270,774 |   |              | $      | 269,079 |   |

----

| Consolidated Statements of Operations    |
|------------------------------------------|
| (In thousands, except per share amounts) |

|                                               |   | Fiscal Year Ended |    |
|----------------------------------------------------|--------|-----------------------------|---------|
|                                               |   | February 26,           |    |   | February 27, |   |   | February 28, |   |
|                                               |   | 2011                        |    |   | 2010 |   |   | 2009 |   |
|                                               |   |                        |    |   |   |   |   |   |   |
| Net sales                                          |   | $                           | 445,133 |   |   | $ | 377,309 |   |   | $ | 242,000 |   |
| Cost of goods sold                                 |   |                        | 271,341 |   |   |   | 232,207 |   |   |   | 141,475 |   |
| Gross profit                                       |   |                        | 173,792 |   |   |   | 145,102 |   |   |   | 100,525 |   |
|                                               |   |                        |    |   |   |   |   |   |   |   |   |   |
| Expenses:                                          |   |                        |    |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative                |   |                        | 124,385 |   |   |   | 109,460 |   |   |   | 73,943 |   |
| Advertising                                        |   |                        | 7,021   |   |   |   | 8,193 |   |   |   | 6,339 |   |
| Occupancy, net                                     |   |                        | 64,203  |   |   |   | 49,535 |   |   |   | 16,304 |   |
| Depreciation and amortization                      |   |                        | 14,581  |   |   |   | 11,414 |   |   |   | 8,003 |   |
| Asset impairment charge                            |   |                        | 4,255   |   |   |   | 80 |   |   |   | 530 |   |
| Bargain purchase gain                              |   |                        | -       |   |   |   | (9,714 | ) |   |   | - |   |
| Acquisition costs                                  |   |                        | -       |   |   |   | 4,857 |   |   |   | - |   |
| Gain from life insurance proceeds and other income |   |                        | (36     | ) |   |   | (25,049 | ) |   |   | (53 | ) |
| (Gain) loss on disposition of assets               |   |                        | 457     |   |   |   | 1,168 |   |   |   | (548 | ) |
| Restructuring charges                              |   |                        | 9,306   |   |   |   | - |   |   |   | - |   |
| Total expenses                                     |   |                        | 224,172 |   |   |   | 149,944 |   |   |   | 104,518 |   |
|                                               |   |                        |    |   |   |   |   |   |   |   |   |   |
| Income (loss) from operations                      |   |                        | (50,380 | ) |   |   | (4,842 | ) |   |   | (3,993 | ) |
|                                               |   |                        |    |   |   |   |   |   |   |   |   |   |
| Interest expense                                   |   |                        | 1,366   |   |   |   | 1,538 |   |   |   | 38 |   |
|                                               |   |                        |    |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                  |   |                        | (51,746 | ) |   |   | (6,380 | ) |   |   | (4,031 | ) |
|                                               |   |                        |    |   |   |   |   |   |   |   |   |   |
| Income tax benefit                                 |   |                        | (18,889 | ) |   |   | (14,688 | ) |   |   | (608 | ) |
|                                               |   |                        |    |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                  |   | $                           | (32,857 | ) |   | $ | 8,308 |   |   | $ | (3,423 | ) |
|                                               |   |                        |    |   |   |   |   |   |   |   |   |   |
| Net income (loss) per share - basic                |   | $                           | (2.27   | ) |   | $ | 0.57 |   |   | $ | (0.23 | ) |
|                                               |   |                        |    |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding - basic        |   |                        | 14,456  |   |   |   | 14,593 |   |   |   | 14,589 |   |
|                                               |   |                        |    |   |   |   |   |   |   |   |   |   |
| Net income (loss) per share - diluted              |   | $                           | (2.27   | ) |   | $ | 0.57 |   |   | $ | (0.23 | ) |
|                                               |   |                        |    |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding - diluted      |   |                        | 14,456  |   |   |   | 14,593 |   |   |   | 14,589 |   |

----

| SYMS CORP                                             |
|-------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY |
| (In thousands)                                        |

|                                                 |   | Common Stock |   |   | AdditionalPaid-in |   |   | Treasury Stock |   |   | Retained |   |   | AccumulatedOther Com-prehensive |   |   |     |   |
|------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|--------|---------------------|--------|--------|----------|--------|--------|--------------------------------------|--------|--------|----------|--------|
|                                                 |   | Shares            |   |   | Amount            |   |   | Capital             |   |   | Shares   |   |   | Amount                               |   |   | Earnings |   |   | Income (Loss) |   |   | Total |   |
|                                                 |   |              |   |   |              |   |   |                |   |   |     |   |   |                                 |   |   |     |   |   |   |   |   |   |   |
| BALANCE AS OF March 1, 2008                          |   |              | 18,670 |   |              | $      | 789    |                |   | $      | 19,273   |   |   |                                 | (4,082 | )      |     | $      | (43,086 | ) |   | $ | 215,136 |   |   | $ | 23 |   |   | $ | 192,135 |   |
|                                                 |   |              |   |   |              |   |   |                |   |   |     |   |   |                                 |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise of options                                  |   |              | 218    |   |              |   | 11     |                |   |   | 2,137    |   |   |                                 | -      |   |     |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,148 |   |
| Tax benefit derived from exercise of Options         |   |              | -      |   |              |   | -      |                |   |   | 150      |   |   |                                 | -      |   |     |   | - |   |   |   | - |   |   |   | - |   |   |   | 150 |   |
| Stock buyback                                        |   |              | -      |   |              |   | -      |                |   |   | -        |   |   |                                 | (216   | )      |     |   | (2,817 | ) |   |   | - |   |   |   | - |   |   |   | (2,817 | ) |
| Comprehensive income:                                |   |              |   |   |              |   |   |                |   |   |     |   |   |                                 |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                             |   |              | -      |   |              |   | -      |                |   |   | -        |   |   |                                 | -      |   |     |   | - |   |   |   | (3,423 | ) |   |   | - |   |   |   | (3,423 | ) |
| Deferred pension (loss), net of tax                  |   |              | -      |   |              |   | -      |                |   |   | -        |   |   |                                 | -      |   |     |   | - |   |   |   | - |   |   |   | (2,150 | ) |   |   | (2,150 | ) |
| Total comprehensive (loss)                           |   |              | -      |   |              |   | -      |                |   |   | -        |   |   |                                 | -      |   |     |   | - |   |   |   | - |   |   |   | - |   |   |   | (5,573 | ) |
|                                                 |   |              |   |   |              |   |   |                |   |   |     |   |   |                                 |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE AS OF February 28, 2009                      |   |              | 18,888 |   |              | $      | 800    |                |   | $      | 21,560   |   |   |                                 | (4,298 | )      |     | $      | (45,903 | ) |   | $ | 211,713 |   |   | $ | (2,127 | ) |   | $ | 186,043 |   |
|                                                 |   |              |   |   |              |   |   |                |   |   |     |   |   |                                 |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise of options                                  |   |              | 8      |   |              |   | -      |                |   |   | 45       |   |   |                                 | -      |   |     |   | - |   |   |   | - |   |   |   | - |   |   |   | 45 |   |
| Comprehensive income:                                |   |              |   |   |              |   |   |                |   |   |     |   |   |                                 |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                           |   |              | -      |   |              |   | -      |                |   |   | -        |   |   |                                 | -      |   |     |   | - |   |   |   | 8,308 |   |   |   | - |   |   |   | 8,308 |   |
| Deferred pension gain, net     of tax |   |              | -      |   |              |   | -      |                |   |   | -        |   |   |                                 | -      |   |     |   | - |   |   |   | - |   |   |   | 636 |   |   |   | 636 |   |
| Total comprehensive income                           |   |              | -      |   |              |   | -      |                |   |   | -        |   |   |                                 | -      |   |     |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,944 |   |
|                                                 |   |              |   |   |              |   |   |                |   |   |     |   |   |                                 |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE AS OF February 27, 2010                      |   |              | 18,896 |   |              | $      | 800    |                |   | $      | 21,605   |   |   |                                 | (4,298 | )      |     | $      | (45,903 | ) |   | $ | 220,021 |   |   | $ | (1,491 | ) |   | $ | 195,032 |   |
|                                                 |   |              |   |   |              |   |   |                |   |   |     |   |   |                                 |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock buyback                                        |   |              | -      |   |              |   | -      |                |   |   | -        |   |   |                                 | (150   | )      |     |   | (1,207 | ) |   |   | - |   |   |   | - |   |   |   | (1,207 | ) |
| Comprehensive income:                                |   |              |   |   |              |   |   |                |   |   |     |   |   |                                 |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                             |   |              | -      |   |              |   | -      |                |   |   | -        |   |   |                                 | -      |   |     |   | - |   |   |   | (32,857 | ) |   |   | - |   |   |   | (32,857 | ) |
| Deferred pension (loss), net of tax                  |   |              | -      |   |              |   | -      |                |   |   | -        |   |   |                                 | -      |   |     |   | - |   |   |   | - |   |   |   | 11 |   |   |   | 11 |   |
| Total comprehensive (loss)                           |   |              | -      |   |              |   | -      |                |   |   | -        |   |   |                                 | -      |   |     |   | - |   |   |   | - |   |   |   | - |   |   |   | (32,846 | ) |
|                                                 |   |              |   |   |              |   |   |                |   |   |     |   |   |                                 |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE AS OF February 26, 2011                      |   |              | 18,896 |   |              | $      | 800    |                |   | $      | 21,605   |   |   |                                 | (4,448 | )      |     | $      | (47,110 | ) |   | $ | 187,164 |   |   | $ | (1,480 | ) |   | $ | 160,979 |   |

----

| Consolidated Statements of Cash Flows |
|---------------------------------------|
| (In thousands)                        |

|                                                                                               |   | Fiscal Year Ended |     |
|----------------------------------------------------------------------------------------------------|--------|-----------------------------|----------|
|                                                                                               |   | February 26,           |     |   | February 27, |   |   | February 28, |   |
|                                                                                               |   | 2011                        |     |   | 2010 |   |   | 2009 |   |
|                                                                                               |   |                        |     |   |   |   |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                              |   |                        |     |   |   |   |   |   |   |
| Net income (loss)                                                                                  |   | $                           | (32,857  | ) |   | $ | 8,308 |   |   | $ | (3,423 | ) |
| Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: |   |                        |     |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                      |   |                        | 14,581   |   |   |   | 11,414 |   |   |   | 8,003 |   |
| Asset impairment                                                                                   |   |                        | 4,255    |   |   |   | 80 |   |   |   | 530 |   |
| Bargain purchase gain                                                                              |   |                        | -        |   |   |   | (9,714 | ) |   |   | - |   |
| Deferred income taxes                                                                              |   |                        | (22,241  | ) |   |   | (9,316 | ) |   |   | (615 | ) |
| (Gain) loss on disposition of assets                                                               |   |                        | 457      |   |   |   | 1,168 |   |   |   | (503 | ) |
| (Increase) decrease in operating assets, net of Filene's acquisition:                              |   |                        |     |   |   |   |   |   |   |   |   |   |
| Receivables                                                                                        |   |                        | 576      |   |   |   | (1,606 | ) |   |   | 856 |   |
| Merchandise inventories                                                                            |   |                        | 5,640    |   |   |   | (8,438 | ) |   |   | 13,606 |   |
| Prepaid expenses and other current assets                                                          |   |                        | 299      |   |   |   | (1,827 | ) |   |   | (1,170 | ) |
| Other assets                                                                                       |   |                        | (242     | ) |   |   | 1,078 |   |   |   | (1,995 | ) |
| Increase (decrease) in operating liabilities, net of Filene's acquisition:                         |   |                        |     |   |   |   |   |   |   |   |   |   |
| Accounts payable                                                                                   |   |                        | (5,655   | ) |   |   | 32,420 |   |   |   | (10,674 | ) |
| Accrued expenses                                                                                   |   |                        | 4,867    |   |   |   | 5,703 |   |   |   | (262 | ) |
| Obligations to customers                                                                           |   |                        | 231      |   |   |   | (160 | ) |   |   | (151 | ) |
| Other long term liabilities                                                                        |   |                        | 8,213    |   |   |   | 2,176 |   |   |   | (338 | ) |
| Income taxes                                                                                       |   |                        | 6,318    |   |   |   | (4,409 | ) |   |   | (940 | ) |
| Net cash (used in) provided by operating activities                                                |   |                        | (15,558  | ) |   |   | 26,877 |   |   |   | 3,215 |   |
|                                                                                               |   |                        |     |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                              |   |                        |     |   |   |   |   |   |   |   |   |   |
| Investment in building and air rights                                                              |   |                        | -        |   |   |   | - |   |   |   | (6,034 | ) |
| Purchase of Filene's Basement                                                                      |   |                        | -        |   |   |   | (38,927 | ) |   |   | - |   |
| Expenditures for property and equipment                                                            |   |                        | (15,540  | ) |   |   | (12,224 | ) |   |   | (7,667 | ) |
| Proceeds from sale of land, building and other assets                                              |   |                        | 10,764   |   |   |   | 54 |   |   |   | 923 |   |
| Net cash used in investing activities                                                              |   |                        | (4,776   | ) |   |   | (51,097 | ) |   |   | (12,778 | ) |
|                                                                                               |   |                        |     |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                              |   |                        |     |   |   |   |   |   |   |   |   |   |
| Cash surrender value advance                                                                       |   |                        | -        |   |   |   | 16,000 |   |   |   | - |   |
| Exercise of stock options                                                                          |   |                        | -        |   |   |   | 45 |   |   |   | 2,148 |   |
| Purchase of treasury shares                                                                        |   |                        | (1,207   | ) |   |   | - |   |   |   | (2,817 | ) |
| Tax benefit of options                                                                             |   |                        | -        |   |   |   | - |   |   |   | 150 |   |
| Borrowings on revolving credit facilities                                                          |   |                        | 428,731  |   |   |   | 51,494 |   |   |   | - |   |
| Repayments on revolving credit facilities                                                          |   |                        | (406,941 | ) |   |   | (43,092 | ) |   |   | - |   |
| Net cash provided by (used in) financing activities                                                |   |                        | 20,583   |   |   |   | 24,447 |   |   |   | (519 | ) |
|                                                                                               |   |                        |     |   |   |   |   |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                               |   |                        | 249      |   |   |   | 227 |   |   |   | (10,082 | ) |
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                                     |   |                        | 2,049    |   |   |   | 1,822 |   |   |   | 11,904 |   |
| CASH AND CASH EQUIVALENTS, END OF PERIOD                                                           |   | $                           | 2,298    |   |   | $ | 2,049 |   |   | $ | 1,822 |   |
|                                                                                               |   |                        |     |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION:                                                                |   |                        |     |   |   |   |   |   |   |   |   |   |
| Cash paid during the period for:                                                                   |   |                        |     |   |   |   |   |   |   |   |   |   |
| Interest                                                                                           |   | $                           | 1,387    |   |   | $ | 975 |   |   | $ | 170 |   |
| Income taxes (net of refunds)                                                                      |   | $                           | (2,702   | ) |   | $ | 506 |   |   | $ | 4,292 |   |

----

| Notes to Consolidated Financial Statements                                    |
|-------------------------------------------------------------------------------|
| FISCAL YEARS ENDED FEBRUARY 26, 2011, FEBRUARY 27, 2010 AND FEBRUARY 28, 2009 |

| a. | Principal Business -   Syms Corp (”Syms” or the “Company”) and its wholly-owned subsidiary Filene’s Basement, LLC (“Filene’s”, “Filene’s, LLC” or “Filene’s Basement”) collectively own and operate a chain of 47 “off-price” retail stores under the “Syms” name (which are owned and operated by the Company) and “Filene’s Basement” name (which are owned and operated by Filene’s, LLC).  The stores are located in the United States throughout the Northeastern and Middle Atlantic regions and in the Midwest, Southeast and Southwest.  Each Syms store offers a broad range of first quality, in-season merchandise bearing nationally recognized designer or brand-name labels for men, women and children at prices substantially lower than those generally found in department and specialty stores.  On June 18, 2009, the Company’s, wholly-owned subsidiary, SYL, LLC now known as Filene’s Basement, LLC acquired certain real property leases, inventory, equipment and other assets of Filene’s Basement Inc. (“Filene’s Inc.” or “Filene’s Basement Inc.”), a retail clothing chain, pursuant to an auction conducted in accordance with § 363 of the Federal Bankruptcy Code.  As a result, Filene’s, LLC owns and operates 21 Filene’s Basement stores that are located in the Northeastern, Middle Atlantic, Midwest and Southeast regions.  Filene’s Basement also offers a broad range of first quality brand name and designer clothing for men, women and children.  In addition, Syms owns and operates 5 co-branded Syms/Filene’s Basement stores. Syms and Filene’s, LLC operate in a single operating segment – the “off-price” retail stores segment. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b. | Principles of Consolidation - The financial statements include the accounts of the Company including its wholly-owned subsidiary.  All intercompany accounts and transactions have been eliminated in consolidation. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c. | Accounting Period - Fiscal 2010 ended on February 26, 2011; fiscal 2009 ended on February 27, 2010, and fiscal 2008 ended on February 28, 2009.  The Company’s fiscal year is a 52-week or 53-week period ending on the Saturday on or nearest to February 28.  The fiscal years ended February 26, 2011, February 27, 2010 and February 28, 2009 were comprised of 52 weeks. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d. | Reclassifications – Certain reclassifications have been applied to prior year amounts to conform to current year presentation. |
|----|--------------------------------------------------------------------------------------------------------------------------------------|

| e. | Cash and Cash Equivalents- Cash and cash equivalents include securities with original maturities of three months or less. |
|----|---------------------------------------------------------------------------------------------------------------------------|

| f. | Concentrations of Credit Risk – The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash.  The Company has substantially all of its cash in banks. Such cash balances at times exceed federally-insured limits.  The Company has not experienced any losses in such accounts. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| g. | Receivables – Receivables consist of third party credit and debit card receivables and other miscellaneous items. |
|----|-------------------------------------------------------------------------------------------------------------------------|

| h. | Merchandise Inventories - Merchandise inventories are stated at the lower of cost or market on a first-in, first-out (FIFO) basis, as determined by the retail inventory method.  Prior to October 4, 2009, all of the Company’s inventories were determined by the retail inventory method.  For a brief period, from October 4, 2009 through October 2, 2010, the Syms stores utilized a different method, the moving weighted average cost method.  As part of the integration plan for the Company, the Syms stores converted their merchandise systems over to that used by Filene’s, effective October 3, 2010 and thus reverted back to the retail inventory method.  The change in the method of recording Syms inventory in the third quarter of fiscal 2009 and in the third quarter of fiscal 2010 did not have a material impact on reported results of operations.  The Company maintains a reserve for inventory obsolescence, which is a reduction to merchandise inventories.  The Company increased its reserve for inventory obsolescence by $6.2 million, as it determined that it had not adequately cleared out old season merchandise as of year-end.  The reserve for inventory obsolescence was $10.6 million and $4.4 million as of February 26, 2011 and February 27, 2010, respectively. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| i.  | Property and Equipment - Property and equipment are stated at cost. Depreciation and amortization are determined by the straight-line method over the following estimated useful lives: |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Buildings and improvements | 15 - 39 years                                |
|--------|----------------------------|----------------------------------------------|
|   | Machinery and equipment    | 4 - 7 years                                  |
|   | Furniture and fixtures     | 7-10 years                                   |
|   | Leasehold improvements     | Lesser of life of the asset or life of lease |
|   | Computer software          | 3 years                                      |

| j. | Impairment of Long-Lived Assets – The Company periodically reviews long-lived assets for impairment whenever changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable.  The Company considers relevant cash flow, management’s strategic plans, significant decreases in the market value of the asset and other available information in assessing whether the carrying value of the assets can be recovered.  When such events occur, the Company compares the carrying amount of the assets to the undiscounted expected future cash flows from the use and eventual disposition of the asset.  If this comparison indicates an impairment, the carrying amount would then be compared to the estimated fair value of the long-lived asset.  An impairment loss would be measured as the amount by which the carrying value of the long-lived asset exceeds its estimated fair value. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| k. | Deferred Income Taxes - Deferred income taxes reflect the future tax consequences of differences between the tax bases of assets and liabilities and their financial reporting amounts at year end. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| l. | Other Assets – The Company has historically recorded the cash surrender value of officers’ life insurance policies on the balance sheet as a non-current asset. Such amounts were $2.2 million and $1.9 million at February 26, 2011 and February 28, 2009, respectively. In March 2009, as a result of uncertainties surrounding the financial viability of the life insurance company underwriting two of these policies, the Company withdrew $16.0 million of accumulated cash value which was ultimately used in connection with the Company’s acquisition of Filene’s, more fully discussed in Note 6 below. The Company continued to be a beneficiary of life insurance policies insuring Mr. Sy Syms, the Company’s founder and Chairman, who died on November 17, 2009. Pursuant to those policies, in December 2009, the Company received cash proceeds of approximately $29.9 million, which was net of the aforementioned, previously received $16.0 million in cash values. Net of the cash surrender value of officer’s life insurance of $5.1 million recorded as of August 29, 2009 in other assets, the Company realized a net gain of $24.8 million. Upon receipt, the aforementioned cash proceeds were used for working capital purposes and to repay a portion of the Company’s senior debt facility. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| m. | Accrued Expenses – Accrued expenses include accrued payroll of $2.1 million and $2.7 million in fiscal 2010 and fiscal 2009, respectively. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| n. | Obligation to Customers - Obligations to customers represent credits issued for returned merchandise as well as gift certificates.  When the Company sells a gift certificate to a customer, it is recorded as a liability in the period the sale occurred.  When the customer redeems the gift certificate for the purchase of merchandise, a sale is recorded and the liability reduced. The Company’s policy is that these credits and gift certificates do not expire. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o. | Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include inventory provisions, sales returns, self-insurance accruals, deferred tax valuation allowances, any estimated impairment and the useful lives of long-lived assets. Actual results could differ from those estimates. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| p. | Revenue Recognition – The Company recognizes revenue at the “point of sale”. Allowance for sales returns is recorded as a component of net sales in the period in which the related sales are recorded. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| q. | Comprehensive Income (Loss) – Comprehensive income (loss) was ($32.8) million, $8.9 million and ($5.6) million for fiscal years 2010, 2009 and 2008, respectively. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| r. | Segment Reporting - ASC 280, “Segment Reporting” establishes standards for reporting information about a company’s operating segments.   It also establishes standards for related disclosures about products and services, geographic areas and major customers.  The Company operates in a single reporting segment - the operation of “off-price” retail stores.  Revenues from external customers are derived from merchandise sales.  The Company’s merchandise sales mix by product category for the last three fiscal years was as follows: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                    |   | Fiscal Year |   |
|---------------------------------------------------------|--------|------------------|--------|
|                                                    |   | 2010             |   |   | 2009 |   |   | 2008 |   |
| Women’s dresses, suits, separates and accessories |   |             | 46     | % |   |   | 44 | % |   |   | 29 | % |
| Men’s tailored clothes and haberdashery           |   |             | 38     | % |   |   | 42 | % |   |   | 53 | % |
| Children’s apparel                                |   |             | 5      | % |   |   | 5 | % |   |   | 7 | % |
| Luggage, domestics and fragrances                       |   |             | 6      | % |   |   | 5 | % |   |   | 3 | % |
| Shoes                                                   |   |             | 5      | % |   |   | 4 | % |   |   | 8 | % |
| Total                                                   |   |             | 100    | % |   |   | 100 | % |   |   | 100 | % |

|   | The Company does not rely on any major customers as a source of revenue. |
|--------|--------------------------------------------------------------------------|

| s. | Gross Profit - The Company’s gross profit excludes the cost of its distribution network.  For the fiscal years ended February 26, 2011, February 27, 2010 and February 28, 2009, the amounts incurred for our distribution network that were classified in selling, general and administrative expenses and occupancy costs were $19,028,000, $15,557,000 and $7,875,000, respectively. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| t. | Computer Software Costs – The Company capitalizes the cost of software developed or purchased for internal use. |
|----|-----------------------------------------------------------------------------------------------------------------------|

| u.  | Advertising Costs – Advertising and sales promotion costs are expensed at the time the advertising occurs.    Advertising and sales promotion costs were $7,021,000 $8,193,000 and $6,339,000 in fiscal 2010, 2009 and 2008, respectively.  The Company does not receive any allowances or credits from vendors in connection with the purchase or promotion of the vendor’s product, such as co-operative advertising and other considerations. |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| v. | Occupancy Costs – Occupancy expenses for fiscal 2010, 2009 and 2008 have been reduced by net rental income of $2,252,000, $2,373,000 and $2,026,000, respectively from real estate holdings incidental to the Company’s retail operations. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| w. | Accounting for Stock-Based Compensation – The Company accounts for stock-based compensation costs in accordance with ASC 718, “Stock Compensation”.  Consistent with ASC 718, share-based compensation cost is measured at grant date, based on the estimated fair value of the award, and is recognized as expense over the requisite service period. The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model.  Expected volatility is based on the historical volatility of the price of the Company’s stock.  The risk-free interest rate is based on U.S. Treasury issues with a term equal to the expected life of the option.  The Company uses historical data to estimate expected dividend yield, expected life and forfeiture rates.  There were no options granted during fiscal 2010, and all options previously issued are fully vested. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| x. | New Accounting Pronouncements – In April 2010, the FASB issued ASU 2010-13, “Compensation – Stock Compensation (Topic 718) – Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades.”  ASU 2010-13 provides amendments to Topic 718 to clarify that an employee share-based payment award with an exercise price denominated in the currency of a market in which a substantial portion of the entity’s equity securities trades should not be considered to contain a condition that is not a market, performance, or service condition.  Therefore, an entity would not classify such an award as a liability if it otherwise qualifies as equity.  The amendments in ASU 2010-13 are effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010.  The adoption of this standard is not expected to have a material impact on the Company’s results of operation or our financial position. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                            |   | February 26, 2011 |    |   | February 27, 2010 |   |
|-------------------------------------------------|--------|-----------------------------|---------|--------|-----------------------------|--------|
|                                            |   | (in thousands)         |    |
| Land                                            |   | $                           | 37,615  |   |                        | $      | 37,615 |   |
| Buildings and building improvements             |   |                        | 114,895 |   |                        |   | 109,919 |   |
| Leasehold and leasehold improvements            |   |                        | 27,107  |   |                        |   | 39,037 |   |
| Machinery and equipment                         |   |                        | 18,186  |   |                        |   | 22,233 |   |
| Furniture and fixtures                          |   |                        | 25,784  |   |                        |   | 28,303 |   |
| Construction in progress                        |   |                        | 733     |   |                        |   | 1,685 |   |
| Computer software                               |   |                        | 17,342  |   |                        |   | 16,002 |   |
|                                            |   |                        | 241,662 |   |                        |   | 254,794 |   |
| Less: accumulated depreciation and amortization |   |                        | 124,462 |   |                        |   | 136,255 |   |
|                                            |   | $                           | 117,200 |   |                        | $      | 118,539 |   |

|                                 |   | Fiscal Year Ended |    |
|--------------------------------------|--------|-----------------------------|---------|
|                                 |   | February 26, 2011 |    |   | February 27, 2010 |   |   | February 28, 2009 |   |
|                                 |   | (in thousands)         |    |
| Current:                             |   |                        |    |   |   |   |   |   |   |
| Federal                              |   | $                           | 3,368   |   |   | $ | (5,954 | ) |   | $ | (437 | ) |
| State                                |   |                        | 62      |   |   |   | 582 |   |   |   | 197 |   |
|                                 |   |                        | 3,430   |   |   |   | (5,372 | ) |   |   | (240 | ) |
|                                 |   |                        |    |   |   |   |   |   |   |   |   |   |
| Deferred:                            |   |                        |    |   |   |   |   |   |   |   |   |   |
| Federal                              |   | $                           | (20,107 | ) |   | $ | (7,321 | ) |   | $ | (55 | ) |
| State                                |   |                        | (2,212  | ) |   |   | (1,995 | ) |   |   | (313 | ) |
|                                 |   |                        | (22,319 | ) |   |   | (9,316 | ) |   |   | (368 | ) |
|                                 |   |                        |    |   |   |   |   |   |   |   |   |   |
| (Benefit) provision for income taxes |   | $                           | (18,889 | ) |   | $ | (14,688 | ) |   | $ | (608 | ) |

----

|                                                       |   | Fiscal Year Ended |   |
|------------------------------------------------------------|--------|-------------------|--------|
|                                                       |   | February 26, 2011 |   |   | February 27, 2010 |   |   | February 28, 2009 |   |
|                                                       |   |              |   |   |   |   |   |   |   |
| Statutory Federal income tax rate                          |   |              | 35.0   | % |   |   | 35.0 | % |   |   | 35.0 | % |
| State taxes1                                          |   |              | 5.6    |   |   |   | 21.3 |   |   |   | 3.8 |   |
| Non-deductible insurance premiums                          |   |              | -      |   |   |   | (10.9 | ) |   |   | (18.6 | ) |
| Life insurance proceeds                                    |   |              | -      |   |   |   | 135.8 |   |   |   | - |   |
| Acquisition of Filene’s Basement                     |   |              | -      |   |   |   | 53.4 |   |   |   | - |   |
| Change of valuation allowance                              |   |              | (2.1   | ) |   |   | (5.4 | ) |   |   | - |   |
| Effect on deferred taxes for change in state tax rate |   |              | 0.6    |   |   |   | 3.8 |   |   |   | - |   |
| Other                                                      |   |              | (2.6   | ) |   |   |  (2.8 | ) |   |   |  (5.1 | ) |
| Effective income tax rate                                  |   |              | 36.5   | % |   |   | 230.2 | % |   |   |  15.1 | % |

|                                               |   | Fiscal Year Ended |   |
|----------------------------------------------------|--------|-----------------------------|--------|
|                                               |   | February 26, 2011 |   |   | February 27, 2010 |   |
|                                               |   | (in thousands)         |   |
| Deferred tax assets:                               |   |                        |   |   |   |   |
| Capitalization of inventory costs                  |   | $                           | 1,917  |   |   | $ | 1,783 |   |
| Pension cost                                       |   |                        | -      |   |   |   | 28 |   |
| Reserves not currently deductible for tax purposes |   |                        | 6,651  |   |   |   | 4,431 |   |
| Net operating loss carry forwards                  |   |                        | 16,610 |   |   |   | 6,889 |   |
| Depreciation                                       |   |                        | 13,282 |   |   |   | 12,183 |   |
| Step rent                                          |   |                        | 2,557  |   |   |   | 936 |   |
| Deferred rent                                      |   |                        | 2,954  |   |   |   | - |   |
| AMT Credit                                         |   |                        | 3,181  |   |   |   | - |   |
| Accrued Expenses                                   |   |                        | 434    |   |   |   | - |   |
| Other                                              |   |                        | 80     |   |   |   | - |   |
| SFAS 158 adjustment                                |   |                        | 918    |   |   |   | 995 |   |
| Total deferred tax assets                          |   | $                           | 48,584 |   |   | $ | 27,245 |   |
| Valuation Allowance                                |   |                        | (1,500 | ) |   |   | (346 | ) |
| Deferred tax assets after valuation allowance      |   | $                           | 47,084 |   |   | $ | 26,899 |   |
|                                               |   |                        |   |   |   |   |   |   |
| Deferred tax liabilities:                          |   |                        |   |   |   |   |   |   |
| Depreciation                                       |   |                        | -      |   |   |   | (2,074 | ) |
| Intangibles                                        |   |                        | (413   | ) |   |   | (778 | ) |
| Step rent                                          |   |                        | (299   | ) |   |   | - |   |
| Pension cost                                       |   |                        | (106   | ) |   |   | - |   |
| Other                                              |   |                        | -      |   |   |   | (22 | ) |
| Total deferred tax liabilities                     |   |                        | (818   | ) |   |   | (2,874 | ) |
| Net deferred tax assets                            |   | $                           | 46,266 |   |   | $ | 24,025 |   |
|                                               |   |                        |   |   |   |   |   |   |
| Current deferred tax assets                        |   | $                           | 9,180  |   |   | $ | 5,912 |   |
| Long term deferred tax assets                      |   |                        | 37,086 |   |   |   | 18,113 |   |
| Total deferred tax assets                          |   | $                           | 46,266 |   |   | $ | 24,025 |   |

----

|   | (i) | No default exists under the Credit Agreement; |
|--------|-----|-----------------------------------------------|

|   | (ii) | After giving effect to the contemplated transaction, Average Daily Availability for each month during the 12 months following such transaction be at least equal to 30% of the Loan Cap; and |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | The consolidated fixed charge coverage ratio, after giving pro forma effect to such transaction for the 12 months prior to such transaction be at least 1.2:1.0. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Fair Value Measurement at February 26, 2011 Using |   |
|--------------------------------------------------------------------------------------|--------|
|                                                                                 |   | Quoted |   |   | Significant |   |   |   |   |   | Total |   |
|                                                                                 |   | Prices in |   |   | Other |   |   | Significant |   |   | Carrying |   |
|                                                                                 |   | Active |   |   | Observable |   |   | Unobservable |   |   | Value at |   |
|                                                                                 |   | Markets |   |   | Inputs |   |   | Inputs |   |   | February 26, |   |
|                                                                                 |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |   | 2011 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                            |   | $ | 2,298,000 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,298,000 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash surrender value                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| – Officers’ Life Insurance                                               |   | $ | - |   |   | $ | 2,192,000 |   |   | $ | - |   |   | $ | 2,192,000 |   |

| Fair Value Measurement at February 27, 2010 Using |   |
|--------------------------------------------------------------------------------------|--------|
|                                                                                 |   | Quoted |   |   | Significant |   |   |   |   |   | Total |   |
|                                                                                 |   | Prices in |   |   | Other |   |   | Significant |   |   | Carrying |   |
|                                                                                 |   | Active |   |   | Observable |   |   | Unobservable |   |   | Value at |   |
|                                                                                 |   | Markets |   |   | Inputs |   |   | Inputs |   |   | February 27, |   |
|                                                                                 |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |   | 2010 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                            |   | $ | 2,049,000 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,049,000 |   |
|                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash surrender value                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| – Officers’ Life Insurance                                               |   | $ | - |   |   | $ | 1,905,000 |   |   | $ | - |   |   | $ | 1,905,000 |   |

----

| Inventory                                |   | $      | 21,316 |   |
|------------------------------------------|--------|--------|--------|--------|
| Fixed assets and equipment               |   |   | 30,051 |   |
| Intangible assets                        |   |   | 2,591  |   |
| Less:  Assumed Liability       |   |   | (1,909 | )      |
| Fair value                               |   |   | 52,049 |   |
| Purchase Price                           |   |   | 38,927 |   |
| Excess of fair value over purchase price |   |   | 13,122 |   |
| Less: Current taxes                      |   |   | (3,325 | )      |
|   Deferred taxes                    |   |   | (83    | )      |
| Bargain purchase gain                    |   | $      | 9,714  |   |

----

| Fiscal Year Ended |   |
|-----------------------------|--------|
| (in thousands)         |   | February 27, 2010 |   |
|                        |   |   |   |
| Revenues                    |   | $ | 441,925 |   |
| Net income (1)              |   | $ | (2,878 | ) |

| (1) | Fiscal 2009 includes a gain of $24,764,000 from the receipt of insurance proceeds from officers’ life insurance policies on the life of the Company’s founder and fiscal 2008 includes a bargain purchase gain of $9,714,000 attributable to the acquisition of Filene’s. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a. | Pension Plan - The Company has a defined benefit pension plan for all employees other than those covered under collective bargaining agreements through December 31, 2006.  This Pension Plan was frozen effective December 31, 2006. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                  |   | February 26, 2011 |   |   | February 27, 2010 |   |
|-------------------------------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|
|                                                  |   | (in thousands)         |   |
| CHANGE IN BENEFIT OBLIGATION:                         |   |                        |   |   |                        |   |
| Net benefit obligation – beginning of period    |   | $                           | 9,673  |   |                        | $      | 10,034 |   |
| Interest cost                                         |   |                        | 584    |   |                        |   | 558 |   |
| Actuarial loss                                        |   |                        | 378    |   |                        |   | 132 |   |
| Gross benefits paid                                   |   |                        | (558   | )      |                        |   | (1,051 | ) |
| Net benefit obligation – end of period          |   | $                           | 10,077 |   |                        | $      | 9,673 |   |
|                                                  |   |                        |   |   |                        |   |   |   |
| CHANGE IN PLAN ASSETS:                                |   |                        |   |   |                        |   |   |   |
| Fair value of plan assets – beginning of period |   | $                           | 7,033  |   |                        | $      | 6,338 |   |
| Employer contributions                                |   |                        | 397    |   |                        |   | - |   |
| Gross benefits paid                                   |   |                        | (558   | )      |                        |   | (1,051 | ) |
| Actual (loss)/return on plan assets                   |   |                        | 990    |   |                        |   | 1,746 |   |
| Fair value of plan assets – end of period       |   | $                           | 7,862  |   |                        | $      | 7,033 |   |
|                                                  |   |                        |   |   |                        |   |   |   |
| Funded status at year end                             |   | $                           | (2,215 | )      |                        | $      | (2,640 | ) |

----

|                                       |   | February 26, 2011 |   |   | February 27, 2010 |   |   | February 28, 2009 |   |
|--------------------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|--------|-----------------------------|--------|
|                                       |   | (in thousands)         |   |
| COMPONENTS OF NET PERIODIC (BENEFIT) COST: |   |                        |   |   |                        |   |   |                        |   |
| Service cost                               |   | $                           | -      |   |                        | $      | -      |                        |   | $ | - |   |
| Interest cost                              |   |                        | 584    |   |                        |   | 558    |                        |   |   | 682 |   |
| (Return) loss on assets                    |   |                        | (990   | )      |                        |   | (1,746 | )                           |   |   | 2,848 |   |
| Amortization of (gain) loss                |   |                        | 553    |   |                        |   | 1,350  |                        |   |   | (3,577 | ) |
| Net periodic (benefit) cost                |   | $                           | 147    |   |                        | $      | 162    |                        |   | $ | (47 | ) |
|                                       |   |                        |   |   |                        |   |   |                        |   |   |   |   |
| WEIGHTED-AVERAGE ASSUMPTION USED:          |   |                        |   |   |                        |   |   |                        |   |   |   |   |
| Discount rate                              |   |                        | 6.1    | %      |                        |   | 6.1    | %                           |   |   | 6.3 | % |
| Rate of compensation increase              |   |                        | -      |   |                        |   | -      |                        |   |   | - |   |

| 2011      |   | $  | 580   |   |
|-----------|--------|---------|-------|--------|
| 2012      |   |    | 580   |   |
| 2013      |   |    | 597   |   |
| 2014      |   |    | 626   |   |
| 2015      |   |    | 635   |   |
| 2016-2020 |   | $       | 3,533 |   |

|                    |   |   |                  |   |   |            |   |   | % of Plan |   |
|-------------------------|--------|--------|-----------------------|--------|--------|-----------------|--------|--------|---------------------|--------|
| Asset Category     |   |   | Asset Allocation |   |   | Fair Value |   |   | Assets              |   |
| Cash and equivalents    |   |   | 0% to 10%             |   |   | $               | 326    |   |                |   | 4 | % |
| Equity Securities       |   |   | 30% to 50%            |   |   |            | 3,244  |   |                |   | 41 | % |
| Fixed Income Securities |   |   | 35% to 55%            |   |   |            | 3,698  |   |                |   | 47 | % |
| Alternative Investments |   |   | 5% to 25%             |   |   |            | 594    |   |                |   | 8 | % |
|                    |   |   |                  |   |   |            |   |   |                |   |   |   |
| Total                   |   |   |                  |   |   | $               | 7,862  |   |                |   | 100 | % |

----

| b. | Profit-Sharing and 401(k) Plan - The Company has a profit-sharing plan and 401(k) plan for all employees other than those covered under collective bargaining agreements. In 1995, the Company established a defined contribution savings plan 401(k) for substantially all of its eligible employees.  Employees may contribute a percentage of their salary to the plan subject to statutory limits.  No contributions were made to this plan in fiscal 2010, fiscal 2009 and fiscal 2008. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a. | Leases - The Company has various operating leases for its retail stores, with terms expiring between 2011 and 2029.  Under most lease agreements, the Company pays real estate taxes, maintenance and other operating expenses.  Certain store leases also provide for additional contingent rentals based upon a percentage of sales in excess of certain minimum amounts. Future minimum lease payments under operating leases as of February 26, 2011 for each of the next five years and in the aggregate are as follows (in thousands): |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Fiscal 2011 |   | $      | 38,240  |   |
|-------------|--------|--------|---------|--------|
| Fiscal 2012 |   |   | 38,268  |   |
| Fiscal 2013 |   |   | 37,901  |   |
| Fiscal 2014 |   |   | 37,810  |   |
| Fiscal 2015 |   |   | 36,173  |   |
| Thereafter  |   |   | 182,917 |   |
| Total       |   | $      | 371,309 |   |

|                       |   | Fiscal Year Ended |   |
|----------------------------|--------|-----------------------------|--------|
|                       |   | February 26, 2011 |   |   | February 27, 2010 |   |   | February 28, 2009 |   |
| Minimum rentals due        |   | $                           | 35,684 |   |   | $ | 27,060 |   |   | $ | 6,581 |   |
| Escalation rentals accrued |   |                        | 3,516  |   |   |   | 2,167 |   |   |   | (338 | ) |
| Sublease rentals           |   |                        | (1,257 | ) |   |   | (1,319 | ) |   |   | (250 | ) |
| Total                      |   | $                           | 37,943 |   |   | $ | 27,908 |   |   | $ | 5,993 |   |

| b. | Legal Proceedings - The Company is a party to routine litigation incidental to its business. Some of the actions to which the Company is a party are covered by insurance and are being defended or reimbursed by the Company’s insurance carriers. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                  |   | Fiscal Year Ended                                      |   |
|---------------------------------------|--------|------------------------------------------------------------------|--------|
|                                  |   | (in thousands except per share amounts) |   |
|                                  |   | February 26, 2011                                      |   |   | February 27, 2010 |   |   | February 28, 2009 |   |
|                                  |   | Options                                                          |   |   | WeightedAverageExercisePrice |   |   | Options |   |   | WeightedAverageExercisePrice |   |   | Options |   |   | WeightedAverageExercisePrice |   |
|                                  |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding – beginning of year |   |                                                             | 98     |   |   | $ | 15.01 |   |   |   | 111 |   |   | $ | 13.81 |   |   |   | 329 |   |   | $ | 11.19 |   |
| Exercised                             |   |                                                             | -      |   |   |   | - |   |   |   | (9 | ) |   |   | 7.18 |   |   |   | (218 | ) |   |   | 9.81 |   |
| Cancelled                             |   |                                                             | -      |   |   |   | - |   |   |   | (4 | ) |   |   | 5.21 |   |   |   | - |   |   |   | - |   |
| Outstanding – end of year       |   |                                                             | 98     |   |   | $ | 15.01 |   |   |   | 98 |   |   | $ | 15.01 |   |   |   | 111 |   |   | $ | 13.81 |   |
|                                  |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Options exercisable at year end       |   |                                                             | 98     |   |   | $ | 15.01 |   |   |   | 98 |   |   | $ | 15.01 |   |   |   | 111 |   |   | $ | 13.81 |   |

----

|                                           |   | Fiscal 2010                                                 |    |   | Fiscal 2009 |   |   | Fiscal 2008 |   |
|------------------------------------------------|--------|------------------------------------------------------------------|---------|--------|------------------|--------|--------|------------------|--------|
|                                           |   | (in thousands except per share amounts) |    |
| Basic and diluted net income (loss) per share: |   |                                                             |    |   |             |   |   |             |   |
|                                           |   |                                                             |    |   |             |   |   |             |   |
| Net income (loss)                              |   | $                                                                | (32,857 | )      |             | $      | 8,308  |             |   | $ | (3,423 | ) |
| Average shares outstanding - basic             |   |                                                             | 14,456  |   |             |   | 14,593 |             |   |   | 14,589 |   |
|                                           |   |                                                             |    |   |             |   |   |             |   |   |   |   |
| Net income (loss) per share – basic      |   | $                                                                | (2.27   | )      |             | $      | 0.57   |             |   | $ | (0.23 | ) |
|                                           |   |                                                             |    |   |             |   |   |             |   |   |   |   |
| Average shares outstanding – diluted     |   |                                                             | 14,456  | *      |             |   | 14,593 | *                |   |   | 14,589 | * |
|                                           |   |                                                             |    |   |             |   |   |             |   |   |   |   |
| Net income (loss) per share – diluted    |   | $                                                                | (2.27   | )      |             | $      | 0.57   |             |   | $ | (0.23 | ) |

|                                        |   | Quarter                                                           |    |
|---------------------------------------------|--------|-------------------------------------------------------------------|---------|
|                                        |   | First                                                             |    |   | Second |   |   | Third |   |   | Fourth |   |
|                                        |   | (In thousands, except per share amounts) |    |
| YEAR ENDED FEBRUARY 26, 2011                |   |                                                              |    |   |   |   |   |   |   |   |   |   |
| Net sales                                   |   | $                                                                 | 121,445 |   |   | $ | 102,073 |   |   | $ | 120,739 |   |   | $ | 100,876 |   |
| Gross profit                                |   |                                                              | 53,743  |   |   |   | 37,123 |   |   |   | 51,345 |   |   |   | 31,581 |   |
| Net income (loss) (1) (2) (3)               |   | $                                                                 | (809    | ) |   | $ | (10,930 | ) |   | $ | (3,315 | ) |   | $ | (17,803 | ) |
| Net income (loss) per share – basic   |   | $                                                                 | (0.06   | ) |   | $ | (0.76 | ) |   | $ | (0.23 | ) |   | $ | (1.23 | ) |
| Net income (loss) per share – diluted |   | $                                                                 | (0.06   | ) |   | $ | (0.76 | ) |   | $ | (0.23 | ) |   | $ | (1.23 | ) |

|                                        |   | Quarter                                  |   |
|---------------------------------------------|--------|------------------------------------------|--------|
|                                        |   | First                                    |   |   | Second |   |   | Third |   |   | Fourth |   |
|                                        |   | (In thousands, except per share amounts) |   |
| YEAR ENDED FEBRUARY 27, 2010  *   |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Net sales                                   |   | $                                        | 50,256 |   |   | $ | 76,437 |   |   | $ | 135,159 |   |   | $ | 115,457 |   |
| Gross profit                                |   |                                     | 21,061 |   |   |   | 28,173 |   |   |   | 57,868 |   |   |   | 38,000 |   |
| Net income (loss) (3) (4)                   |   | $                                        | (2,035 | ) |   | $ | (7,889 | ) |   | $ | 25,646 |   |   | $ | (7,414 | ) |
| Net income (loss) per share – basic   |   | $                                        | (0.14  | ) |   | $ | (0.54 | ) |   | $ | 1.76 |   |   | $ | (0.51 | ) |
| Net income (loss) per share – diluted |   | $                                        | (0.14  | ) |   | $ | (0.54 | ) |   | $ | 1.76 |   |   | $ | (0.51 | ) |

|   | (1) | Includes asset impairment charge of $1,721 and $2,534 in the third and fourth quarters, respectively. |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (2) | Includes restructuring charges of $831, $471, $831 and $7,173 in the first, second, third and fourth quarters, respectively. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Includes loss on disposition of assets of $504 in the third quarter of 2010 and $1,168 in the fourth quarter of 2009. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | (4) | Includes income of $24,764 from the receipt of life insurance proceeds from officers’ life insurance policies in the third quarter and a bargain purchase gain of $9,407 and acquisition costs of $4,148 attributable to the acquisition of Filene’s in the second quarter. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                           |   | Leaseobligations |   |   | One-timetermination benefits |   |   | Otherassociated costs |   |   | Total  |   |
|--------------------------------|--------|------------------|--------|--------|-----------------------------------|--------|--------|----------------------------|--------|--------|--------|--------|
| (In thousands)                 |   |             |   |   |                              |   |   |                       |   |   |   |   |
| Balance, February 28, 2010     |   | $                | -      |   |                              | $      | -      |                       |   | $      | -      |   |   | $ | - |   |
| Additions                      |   |             | 7,171  |   |                              |   | 1,082  |                       |   |   | 1,053  |   |   |   | 9,306 |   |
| Payments and other adjustments |   |             | 37     |   |                              |   | (976   | )                          |   |   | (1,053 | )      |   |   | 1,992 |   |
| Balance, February 26, 2011     |   | $                | 7,208  |   |                              | $      | 106    |                       |   | $      | -      |   |   | $ | 7,314 |   |

----