----

----

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

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

----

| DELAWARE                                                       |   | 20-8304743                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

----

| Large accelerated filer | o | Accelerated filer | x | Non-accelerated filer | o | Smaller reporting company | o |
|-------------------------|---|-------------------|---|-----------------------|---|---------------------------|---|

----

----

----

Table 

| Item                          |   |                                                                                                                                    | Page   |
|-------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART I. Financial Information |   |
| Item 1.                       |   | Financial Statements - Unaudited                                                                                                        |   |
|                          |   | Condensed Consolidated Balance Sheets as of April 2, 2011 and January 1, 2011                                                           | 3      |
|                          |   | Condensed Consolidated Statements of Operations for the Thirteen Weeks Ended April 2, 2011 and April 3, 2010                            | 4      |
|                          |   | Condensed Consolidated Statements of Changes in Stockholder’s Equity for the Thirteen Weeks Ended April 2, 2011 and April 3, 2010 | 5      |
|                          |   | Condensed Consolidated Statements of Cash Flows for the Thirteen Weeks Ended April 2, 2011 and April 3, 2010                            | 6      |
|                          |   | Notes to Condensed Consolidated Financial Statements                                                                                    | 7      |
| Item 2.                       |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                             | 21     |
| Item 3.                       |   | Quantitative and Qualitative Disclosures About Market Risk                                                                              | 26     |
| Item 4.                       |   | Controls and Procedures                                                                                                                 | 27     |
| PART II. Other Information    |   |
| Item 1.                       |   | Legal Proceedings                                                                                                                       | 27     |
| Item 1A.                      |   | Risk Factors                                                                                                                            | 28     |
| Item 2.                       |   | Unregistered Sales of Equity Securities and Use of Proceeds                                                                             | 31     |
| Item 3.                       |   | Defaults Upon Senior Securities                                                                                                         | 31     |
| Item 5.                       |   | Other Information                                                                                                                       | 32     |
| Item 6.                       |   | Exhibits                                                                                                                                | 32     |
| Signatures                    | 33     |

----

Table of Contents

| Item 1. | Financial Statements |
|---------|----------------------|

HOLDING 

|                                                                                                                                                |   | April 2, |      |   | January 1, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|-----------------|--------|
|                                                                                                                                                |   | 2011          |      |   | 2011            |   |
| ASSETS                                                                                                                                              |   |          |      |   |            |   |
| CURRENT ASSETS:                                                                                                                                     |   |          |      |   |            |   |
| Cash                                                                                                                                                |   | $             | 4,043     |   |            | $      | 12,713 |   |
| Accounts receivable, net                                                                                                                            |   |          | 48,623    |   |            |   | 46,937 |   |
| Inventory                                                                                                                                           |   |          | 85,221    |   |            |   | 67,387 |   |
| Prepaid expenses and other current assets                                                                                                           |   |          | 18,010    |   |            |   | 10,813 |   |
| Deferred tax assets                                                                                                                                 |   |          | 10,663    |   |            |   | 11,642 |   |
|                                                                                                                                                |   |          |      |   |            |   |   |   |
| TOTAL CURRENT ASSETS                                                                                                                                |   |          | 166,560   |   |            |   | 149,492 |   |
|                                                                                                                                                |   |          |      |   |            |   |   |   |
| PROPERTY AND EQUIPMENT-NET                                                                                                                          |   |          | 117,176   |   |            |   | 118,786 |   |
| GOODWILL                                                                                                                                            |   |          | 643,570   |   |            |   | 643,570 |   |
| INTANGIBLE ASSETS                                                                                                                                   |   |          | 278,682   |   |            |   | 281,749 |   |
| DEFERRED FINANCING COSTS                                                                                                                            |   |          | 13,456    |   |            |   | 14,271 |   |
| OTHER ASSETS                                                                                                                                        |   |          | 2,113     |   |            |   | 1,832 |   |
|                                                                                                                                                |   |          |      |   |            |   |   |   |
| TOTAL ASSETS                                                                                                                                        |   | $             | 1,221,557 |   |            | $      | 1,209,700 |   |
|                                                                                                                                                |   |          |      |   |            |   |   |   |
| LIABILITIES AND STOCKHOLDER'S EQUITY                                                                                                                |   |          |      |   |            |   |   |   |
|                                                                                                                                                |   |          |      |   |            |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                |   |          |      |   |            |   |   |   |
| Accounts payable                                                                                                                                    |   | $             | 25,118    |   |            | $      | 26,291 |   |
| Accrued payroll                                                                                                                                     |   |          | 8,802     |   |            |   | 12,669 |   |
| Accrued interest                                                                                                                                    |   |          | 6,009     |   |            |   | 17,509 |   |
| Accrued income taxes                                                                                                                                |   |          | -         |   |            |   | 18,840 |   |
| Accrued purchases of property and equipment                                                                                                         |   |          | 2,800     |   |            |   | 2,269 |   |
| Current portion of capital leases                                                                                                                   |   |          | 642       |   |            |   | 667 |   |
| Other accrued liabilities                                                                                                                           |   |          | 33,573    |   |            |   | 45,508 |   |
|                                                                                                                                                |   |          |      |   |            |   |   |   |
| TOTAL CURRENT LIABILITIES                                                                                                                           |   |          | 76,944    |   |            |   | 123,753 |   |
|                                                                                                                                                |   |          |      |   |            |   |   |   |
| DEFERRED TAX LIABILITIES                                                                                                                            |   |          | 100,297   |   |            |   | 99,432 |   |
| LONG-TERM DEBT                                                                                                                                      |   |          | 959,125   |   |            |   | 901,125 |   |
| DEFERRED RENT                                                                                                                                       |   |          | 11,856    |   |            |   | 11,535 |   |
| CAPITAL LEASES, NET OF CURRENT PORTION                                                                                                              |   |          | 1,560     |   |            |   | 1,677 |   |
| OTHER LONG-TERM LIABILITIES                                                                                                                         |   |          | 2,612     |   |            |   | 2,170 |   |
| COMMITMENTS AND CONTINGENCIES                                                                                                                       |   |          |      |   |            |   |   |   |
| STOCKHOLDER'S EQUITY:                                                                                                                               |   |          |      |   |            |   |   |   |
| Common stock: $.01 par value; 500,000 issued and 497,981 outstanding at April 2, 2011 and 500,000 issued and 498,042 outstanding at January 1, 2011 |   |          | 418,187   |   |            |   | 418,187 |   |
| Additional paid-in capital                                                                                                                          |   |          | 8,705     |   |            |   | 3,421 |   |
| Treasury stock: at cost, 2,019 shares at April 2, 2011 and 1,958 shares at January 1, 2011                                                          |   |          | (1,809    | )      |            |   | (1,723 | ) |
| Accumulated deficit                                                                                                                                 |   |          | (353,740  | )      |            |   | (346,516 | ) |
| Accumulated other comprehensive loss                                                                                                                |   |          | (2,180    | )      |            |   | (3,361 | ) |
|                                                                                                                                                |   |          |      |   |            |   |   |   |
| Total stockholder's equity                                                                                                                          |   |          | 69,163    |   |            |   | 70,008 |   |
|                                                                                                                                                |   |          |      |   |            |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY                                                                                                          |   | $             | 1,221,557 |   |            | $      | 1,209,700 |   |

----

Table of Contents

CORP

|                                                              |   | ThirteenWeeks Ended April 2, 2011 |    |   | ThirteenWeeks EndedApril 3, 2010 |   |
|-------------------------------------------------------------------|--------|-------------------------------------------------------|---------|--------|-------------------------------------------------|--------|
| Sales                                                             |   | $                                                     | 144,114 |   |                                            | $      | 140,975 |   |
| Cost of sales                                                     |   |                                                  | 64,863  |   |                                            |   | 62,312 |   |
|                                                              |   |                                                  |    |   |                                            |   |   |   |
| Gross profit                                                      |   |                                                  | 79,251  |   |                                            |   | 78,663 |   |
| Selling expenses                                                  |   |                                                  | 53,059  |   |                                            |   | 49,568 |   |
| General and administrative expenses                               |   |                                                  | 18,594  |   |                                            |   | 16,679 |   |
| Restructuring charges                                             |   |                                                  | -       |   |                                            |   | 800 |   |
|                                                              |   |                                                  |    |   |                                            |   |   |   |
| Operating income                                                  |   |                                                  | 7,598   |   |                                            |   | 11,616 |   |
| Interest expense                                                  |   |                                                  | 17,679  |   |                                            |   | 19,807 |   |
| Other (income) expense, net                                       |   |                                                  | (1,875  | )      |                                            |   | 4,732 |   |
|                                                              |   |                                                  |    |   |                                            |   |   |   |
| Loss from continuing operations before provision for income taxes |   |                                                  | (8,206  | )      |                                            |   | (12,923 | ) |
| Benefit from income taxes                                         |   |                                                  | (2,912  | )      |                                            |   | (4,676 | ) |
|                                                              |   |                                                  |    |   |                                            |   |   |   |
| Loss from continuing operations                                   |   |                                                  | (5,294  | )      |                                            |   | (8,247 | ) |
| Loss from discontinued operations, net of income taxes            |   |                                                  | (54     | )      |                                            |   | (255 | ) |
|                                                              |   |                                                  |    |   |                                            |   |   |   |
| Net loss                                                          |   | $                                                     | (5,348  | )      |                                            | $      | (8,502 | ) |

----

Table of Contents

HOLDING 

|                                               |   | Common Stock |    |   | Additional |   |    | Treasury Stock |   |   |    |   |   | Accumulated Other  |    |   |                |   |    |                     |   |
|----------------------------------------------------|--------|--------------|---------|--------|------------|--------|---------|----------------|--------|--------|---------|--------|--------|-------------------------|---------|--------|---------------------|--------|---------|--------------------------|--------|
|                                               |   | Shares       |    |   | Amount     |   |    | Paid inCapital |   |   | Shares  |   |   | Amount                  |    |   | Accumulated Deficit |   |    |  Comprehensive Loss |   |   | Comprehensive Loss |   |   | Total |   |
| BALANCE, JANUARY 2, 2010                           |   |         | 500     |   |       | $      | 418,187 |           |   | $      | 2,419   |   |   |                    | 1,120   |   |                | $      | (790    | )                        |   | $ | (388,425 | ) |   | $ | (8,148 | ) |   |   |   |   | $ | 23,243 |   |
| Issuance of common stock                           |   |         | — |   |       |   | — |           |   |   | 25      |   |   |                    | — |   |                |   | — |                     |   |   | — |   |   |   | — |   |   |   |   |   |   | 25 |   |
| Repurchase of common stock                         |   |         | — |   |       |   | — |           |   |   | — |   |   |                    | 570     |   |                |   | (630    | )                        |   |   | — |   |   |   | — |   |   |   |   |   |   | (630 | ) |
| Equity-based compensation expense                  |   |         | — |   |       |   | — |           |   |   | 329     |   |   |                    | — |   |                |   | — |                     |   |   | — |   |   |   | — |   |   |   |   |   |   | 329 |   |
| Comprehensive loss:                                |   |         |    |   |       |   |    |           |   |   |    |   |   |                    |    |   |                |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                           |   |         | — |   |       |   | — |           |   |   | — |   |   |                    | — |   |                |   | — |                     |   |   | (8,502 | ) |   |   | — |   |   | $ | (8,502 | ) |   |   | (8,502 | ) |
| Foreign currency translation                       |   |         | — |   |       |   | — |           |   |   | — |   |   |                    | — |   |                |   | — |                     |   |   | — |   |   |   | (1,078 | ) |   |   | (1,078 | ) |   |   | (1,078 | ) |
| Unrealized loss on interest rate swaps, net of tax |   |         | — |   |       |   | — |           |   |   | — |   |   |                    | — |   |                |   | — |                     |   |   | — |   |   |   | 3,113 |   |   |   | 3,113 |   |   |   | 3,113 |   |
|                                               |   |         |    |   |       |   |    |           |   |   |    |   |   |                    |    |   |                |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss                                 |   |         |    |   |       |   |    |           |   |   |    |   |   |                    |    |   |                |   |    |                     |   |   |   |   |   |   |   |   |   | $ | (6,467 | ) |   |   |   |   |
|                                               |   |         |    |   |       |   |    |           |   |   |    |   |   |                    |    |   |                |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE, APRIL 3, 2010                             |   |         | 500     |   |       | $      | 418,187 |           |   | $      | 2,773   |   |   |                    | 1,690   |   |                | $      | (1,420  | )                        |   | $ | (396,927 | ) |   | $ | (6,113 | ) |   |   |   |   |   | $ | 16,500 |   |
|                                               |   |         |    |   |       |   |    |           |   |   |    |   |   |                    |    |   |                |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE, JANUARY 1, 2011                           |   |         | 500     |   |       | $      | 418,187 |           |   | $      | 3,421   |   |   |                    | 1,958   |   |                | $      | (1,723  | )                        |   | $ | (346,516 | ) |   | $ | (3,361 | ) |   |   |   |   |   | $ | 70,008 |   |
|                                               |   |         |    |   |       |   |    |           |   |   |    |   |   |                    |    |   |                |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of common stock                           |   |         | — |   |       |   | — |           |   |   | 3       |   |   |                    | — |   |                |   | — |                     |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 3 |   |
| Repurchase of common stock                         |   |         | — |   |       |   | — |           |   |   | — |   |   |                    | 61      |   |                |   | (86     | )                        |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (86 | ) |
| Equity-based compensation expense                  |   |         | — |   |       |   | — |           |   |   | 194     |   |   |                    | — |   |                |   | — |                     |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 194 |   |
| Contributions by YCC Holdings LLC                  |   |         | — |   |       |   | — |           |   |   | 5,087   |   |   |                    | — |   |                |   | — |                     |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 5,087 |   |
| Dividend to YCC Holdings LLC                       |   |         | — |   |       |   | — |           |   |   | — |   |   |                    | — |   |                |   | — |                     |   |   | (1,876 | ) |   |   | — |   |   |   | — |   |   |   | (1,876 | ) |
| Comprehensive income:                              |   |         |    |   |       |   |    |           |   |   |    |   |   |                    |    |   |                |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                         |   |         | — |   |       |   | — |           |   |   | — |   |   |                    | — |   |                |   | — |                     |   |   | (5,348 | ) |   |   | — |   |   | $ | (5,348 | ) |   |   | (5,348 | ) |
| Foreign currency translation                       |   |         | — |   |       |   | — |           |   |   | — |   |   |                    | — |   |                |   | — |                     |   |   | — |   |   |   | 469 |   |   |   | 469 |   |   |   | 469 |   |
| Unrealized gain on interest rate swaps, net of tax |   |         | — |   |       |   | — |           |   |   | — |   |   |                    | — |   |                |   | — |                     |   |   | — |   |   |   | 712 |   |   |   | 712 |   |   |   | 712 |   |
|                                               |   |         |    |   |       |   |    |           |   |   |    |   |   |                    |    |   |                |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                               |   |         |    |   |       |   |    |           |   |   |    |   |   |                    |    |   |                |   |    |                     |   |   |   |   |   |   |   |   |   | $ | (4,167 | ) |   |   |   |   |
|                                               |   |         |    |   |       |   |    |           |   |   |    |   |   |                    |    |   |                |   |    |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| BALANCE, APRIL 2, 2011                             |   |         | 500     |   |       | $      | 418,187 |           |   | $      | 8,705   |   |   |                    | 2,019   |   |                | $      | (1,809  | )                   |   | $ | (353,740 | ) |   | $ | (2,180 | ) |   |   |   |   |   | $ | 69,163 |   |

----

Table of Contents

YANKEE 

|                                                                        |   | ThirteenWeeks EndedApril 2, 2011 |    |   | ThirteenWeeks EndedApril 3, 2010 |   |
|-----------------------------------------------------------------------------|--------|--------------------------------------------|---------|--------|--------------------------------------------|--------|
| CASH FLOWS USED IN OPERATING ACTIVITIES:                                    |   |                                       |    |   |                                       |   |
| Net loss                                                                    |   | $                                          | (5,348  | )      |                                       | $      | (8,502 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |                                       |    |   |                                       |   |   |   |
| Realized (gain) loss on derivative contracts                                |   |                                       | (1,408  | )      |                                       |   | 4,802 |   |
| Depreciation and amortization                                               |   |                                       | 10,239  |   |                                       |   | 10,704 |   |
| Unrealized gain on marketable securities                                    |   |                                       | (57     | )      |                                       |   | (54 | ) |
| Equity-based compensation expense                                           |   |                                       | 194     |   |                                       |   | 329 |   |
| Deferred taxes                                                              |   |                                       | 1,245   |   |                                       |   | (865 | ) |
| Loss (gain) on disposal and impairment of property and equipment            |   |                                       | 69      |   |                                       |   | (5 | ) |
| Changes in assets and liabilities:                                          |   |                                       |    |   |                                       |   |   |   |
| Accounts receivable                                                         |   |                                       | (1,200  | )      |                                       |   | 3,065 |   |
| Inventory                                                                   |   |                                       | (17,248 | )      |                                       |   | (9,293 | ) |
| Prepaid expenses and other assets                                           |   |                                       | (1,653  | )      |                                       |   | (2,712 | ) |
| Accounts payable                                                            |   |                                       | (1,233  | )      |                                       |   | 4,663 |   |
| Income taxes                                                                |   |                                       | (23,374 | )      |                                       |   | (4,726 | ) |
| Accrued expenses and other liabilities                                      |   |                                       | (23,694 | )      |                                       |   | (25,017 | ) |
|                                                                        |   |                                       |    |   |                                       |   |   |   |
| NET CASH USED IN OPERATING ACTIVITIES                                       |   |                                       | (63,468 | )      |                                       |   | (27,611 | ) |
|                                                                        |   |                                       |    |   |                                       |   |   |   |
| CASH FLOWS USED IN INVESTING ACTIVITIES:                                    |   |                                       |    |   |                                       |   |   |   |
| Purchases of property and equipment                                         |   |                                       | (4,124  | )      |                                       |   | (2,932 | ) |
| Proceeds from sale of property and equipment                                |   |                                       | -       |   |                                       |   | 192 |   |
|                                                                        |   |                                       |    |   |                                       |   |   |   |
| NET CASH USED IN INVESTING ACTIVITIES                                       |   |                                       | (4,124  | )      |                                       |   | (2,740 | ) |
|                                                                        |   |                                       |    |   |                                       |   |   |   |
| CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:                                |   |                                       |    |   |                                       |   |   |   |
| Borrowings under Senior Secured Credit Facility                             |   |                                       | 58,000  |   |                                       |   | 37,000 |   |
| Repayments under Senior Secured Credit Facility                             |   |                                       | -       |   |                                       |   | (11,000 | ) |
| Contributions by YCC Holdings LLC                                           |   |                                       | 3,000   |   |                                       |   | - |   |
| Dividend to YCC Holdings LLC                                                |   |                                       | (1,876  | )      |                                       |   | - |   |
| Proceeds from issuance of common stock                                      |   |                                       | 3       |   |                                       |   | 25 |   |
| Repurchase of common stock                                                  |   |                                       | (86     | )      |                                       |   | (630 | ) |
| Principal payments on capital lease obligations                             |   |                                       | (165    | )      |                                       |   | - |   |
|                                                                        |   |                                       |    |   |                                       |   |   |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                   |   |                                       | 58,876  |   |                                       |   | 25,395 |   |
|                                                                        |   |                                       |    |   |                                       |   |   |   |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH                                     |   |                                       | 46      |   |                                       |   | (92 | ) |
|                                                                        |   |                                       |    |   |                                       |   |   |   |
| NET DECREASE IN CASH                                                        |   |                                       | (8,670  | )      |                                       |   | (5,048 | ) |
| CASH, BEGINNING OF PERIOD                                                   |   |                                       | 12,713  |   |                                       |   | 9,095 |   |
|                                                                        |   |                                       |    |   |                                       |   |   |   |
| CASH, END OF PERIOD                                                         |   | $                                          | 4,043   |   |                                       | $      | 4,047 |   |
|                                                                        |   |                                       |    |   |                                       |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                          |   |                                       |    |   |                                       |   |   |   |
| Cash paid during the period for:                                            |   |                                       |    |   |                                       |   |   |   |
| Interest                                                                    |   | $                                          | 28,168  |   |                                       | $      | 30,350 |   |
| Income taxes                                                                |   | $                                          | 19,188  |   |                                       | $      | 766 |   |
| Net change in accrued purchases of property and equipment                   |   | $                                          | (531    | )      |                                       | $      | 1,586 |   |
| Capital lease obligations related to equipment purchase                     |   | $                                          | 22      |   |                                       | $      | 1,974 |   |
| Noncash Financing Activities:                                               |   |                                       |    |   |                                       |   |   |   |
| Noncash contribution by YCC Holdings LLC                                    |   | $                                          | 2,087   |   |                                       | $      | - |   |

----

Table of Contents

HOLDING 

----

Table of Contents

|                        |   | April 2, 2011 |   |   | January 1, 2011 |   |
|-----------------------------|--------|---------------|--------|--------|-----------------|--------|
| Finished goods              |   | $             | 73,889 |   |            | $      | 58,153 |   |
| Work-in-process             |   |          | 537    |   |            |   | 362 |   |
| Raw materials and packaging |   |          | 10,795 |   |            |   | 8,872 |   |
|                        |   |          |   |   |            |   |   |   |
| Total inventory             |   | $             | 85,221 |   |            | $      | 67,387 |   |

----

Table of Contents

|                                 |   | Weighted Average Useful Life (in years) |   |   | Gross Carrying Amount |   |    | Accumulated Amortization |   |   | Net Book Value |   |
|--------------------------------------|--------|-----------------------------------------|--------|--------|-----------------------|--------|---------|--------------------------|--------|--------|---------------------|--------|
| April 2, 2011                   |   |                                    |   |   |                  |   |    |                     |   |   |                |   |
| Indefinite life:                     |   |                                    |   |   |                  |   |    |                     |   |   |                |   |
| Tradenames                           |   |                                    | N/A    |   |                  | $      | 267,755 |                     |   | $      | -                   |   |   | $ | 267,755 |   |
|                                 |   |                                    |   |   |                  |   |    |                     |   |   |                |   |   |   |   |   |
| Finite-lived intangible assets:      |   |                                    |   |   |                  |   |    |                     |   |   |                |   |   |   |   |   |
| Customer lists                       |   |                                    | 5      |   |                  |   | 63,669  |                     |   |   | (53,267             | )      |   |   | 10,402 |   |
| Favorable lease agreements           |   |                                    | 5      |   |                  |   | 2,330   |                     |   |   | (1,807              | )      |   |   | 523 |   |
| Other                                |   |                                    | 3      |   |                  |   | 36      |                     |   |   | (34                 | )      |   |   | 2 |   |
|                                 |   |                                    |   |   |                  |   |    |                     |   |   |                |   |   |   |   |   |
| Total finite-lived intangible assets |   |                                    |   |   |                  |   | 66,035  |                     |   |   | (55,108             | )      |   |   | 10,927 |   |
|                                 |   |                                    |   |   |                  |   |    |                     |   |   |                |   |   |   |   |   |
| Total intangible assets              |   |                                    |   |   |                  | $      | 333,790 |                     |   | $      | (55,108             | )      |   | $ | 278,682 |   |
|                                 |   |                                    |   |   |                  |   |    |                     |   |   |                |   |   |   |   |   |
| January 1, 2011                 |   |                                    |   |   |                  |   |    |                     |   |   |                |   |   |   |   |   |
| Indefinite life:                     |   |                                    |   |   |                  |   |    |                     |   |   |                |   |   |   |   |   |
| Tradenames                           |   |                                    | N/A    |   |                  | $      | 267,755 |                     |   | $      | -                   |   |   | $ | 267,755 |   |
|                                 |   |                                    |   |   |                  |   |    |                     |   |   |                |   |   |   |   |   |
| Finite-lived intangible assets:      |   |                                    |   |   |                  |   |    |                     |   |   |                |   |   |   |   |   |
| Customer lists                       |   |                                    | 5      |   |                  |   | 63,650  |                     |   |   | (50,234             | )      |   |   | 13,416 |   |
| Favorable lease agreements           |   |                                    | 5      |   |                  |   | 2,330   |                     |   |   | (1,755              | )      |   |   | 575 |   |
| Other                                |   |                                    | 3      |   |                  |   | 36      |                     |   |   | (33                 | )      |   |   | 3 |   |
|                                 |   |                                    |   |   |                  |   |    |                     |   |   |                |   |   |   |   |   |
| Total finite-lived intangible assets |   |                                    |   |   |                  |   | 66,016  |                     |   |   | (52,022             | )      |   |   | 13,994 |   |
|                                 |   |                                    |   |   |                  |   |    |                     |   |   |                |   |   |   |   |   |
| Total intangible assets              |   |                                    |   |   |                  | $      | 333,771 |                     |   | $      | (52,022             | )      |   | $ | 281,749 |   |

|                                     |   | April 2, 2011 |    |   | January 1, 2011 |   |
|------------------------------------------|--------|---------------|---------|--------|-----------------|--------|
| Senior secured revolving credit facility |   | $             | 58,000  |   |            | $      | - |   |
| Senior secured term loan facility        |   |          | 388,125 |   |            |   | 388,125 |   |
| Senior notes due 2015                    |   |          | 325,000 |   |            |   | 325,000 |   |
| Senior subordinated notes due 2017       |   |          | 188,000 |   |            |   | 188,000 |   |
|                                     |   |          |    |   |            |   |   |   |
| Total                                    |   | $             | 959,125 |   |            | $      | 901,125 |   |

----

Table of Contents

|                               | Class A Common Units |   |   | Weighted Average Calculated Value |   |   | Class B Common Units |   | Weighted Average Calculated Value |   |    | Class C Common Units |   | Weighted Average Calculated Value |    |
|------------------------------------|---------------------------|--------|--------|-----------------------------------|--------|--------|---------------------------|--------|-----------------------------------|--------|---------|---------------------------|--------|-----------------------------------|---------|
| Nonvested stock at January 1, 2011 |                      |   | -      |                              |   |   | -                         |   |                              |   | 73,293  |                      |   | $                                 | 9.39    |   |   |   | 62,747 |   |   | $ | 23.16 |   |
| Forfeited                          |                      |   | -      |                              |   |   | -                         |   |                              |   | (20,858 | )                         |   | $                                 | 9.39    |   |   |   | - |   |   |   | - |   |
| Vested                             |                      |   | -      |                              |   |   | -                         |   |                              |   | (11,831 | )                         |   | $                                 | 9.39    |   |   |   | (4,232 | ) |   | $ | 19.94 |   |
|                               |                      |   |   |                              |   |   |                      |   |                              |   |    |                      |   |                              |    |   |   |   |   |   |   |   |   |   |
| Nonvested stock at April 2, 2011   |                      |   | -      |                              |   |   | -                         |   |                              |   | 40,604  |                      |   | $                                 | 9.39    |   |   |   | 58,515 |   |   | $ | 23.39 |   |
|                               |                      |   |   |                              |   |   |                      |   |                              |   |    |                      |   |                              |    |   |   |   |   |   |   |   |   |   |
|                               | Class A Common Units |   |   | Weighted Average Calculated Value |   |   | Class B Common Units |   | Weighted Average Calculated Value |   |    | Class C Common Units |   | Weighted Average Calculated Value |    |
| Nonvested stock at January 2, 2010 |                      |   | -      |                              |   |   | -                         |   |                              |   | 152,136 |                      |   | $                                 | 9.39    |   |   |   | 75,037 |   |   | $ | 11.56 |   |
| Granted                            |                      |   | 198    |                              |   |   | -                         |   |                              |   | -       |                      |   |                              | — |   |   |   | 39,000 |   |   | $ | 34.40 |   |
| Forfeited                          |                      |   | -      |                              |   |   | -                         |   |                              |   | (9,519  | )                         |   | $                                 | 9.39    |   |   |   | (28,651 | ) |   | $ | 12.30 |   |
| Vested                             |                      |   | (198   | )                                 |   |   | -                         |   |                              |   | (17,295 | )                         |   | $                                 | 9.39    |   |   |   | (9,109 | ) |   | $ | 22.00 |   |
|                               |                      |   |   |                              |   |   |                      |   |                              |   |    |                      |   |                              |    |   |   |   |   |   |   |   |   |   |
| Nonvested stock at April 3, 2010   |                      |   | -      |                              |   |   | -                         |   |                              |   | 125,322 |                      |   | $                                 | 9.39    |   |   |   | 76,277 |   |   | $ | 21.71 |   |

| Assumptions                                         |   | ThirteenWeeks EndedApril 3, 2010 |    |
|-----------------------------------------------------|--------|--------------------------------------------|---------|
| Weighted average calculated value of awards granted |   | $                                          | 34.40   |   |
| Weighted average volatility                         |   |                                       | 39.7    | % |
| Weighted average expected term (in years)           |   |                                       | 5.0     |   |
| Dividend yield                                      |   |                                       | — |   |
| Weighted average risk-free interest rate            |   |                                       | 2.7     | % |

----

Table of Contents

----

Table of Contents

|                                              | Fair Values of Derivative Instruments                              |   |
|---------------------------------------------------|--------------------------------------------------------------------|--------|
|                                              | Asset Derivatives                                                  |   |
|                                              |                                                               |   | April 2, |   | January 1, |   |
|                                              | Balance Sheet Location                                   |   | 2011 |   | 2011 |   |
| Derivatives not designated as hedging instruments |                                                               |   |   |   |   |   |
| Interest rate swap agreements                     | Prepaid expenses and other current assets |   | $ | - |   | $ | 1,030 |   |
|                                              |                                                               |   |   |   |   |   |   |   |
| Total Derivative Assets                           |                                                               |   | $ | - |   | $ | 1,030 |   |

|                                              | Fair Value of Derivative Instruments |   |
|---------------------------------------------------|--------------------------------------|--------|
|                                              | Liability Derivatives                |   |
|                                              | Balance Sheet Location     |   | April 2, 2011 |   |   | January 1, 2011 |   |
| Derivatives not designated as hedging instruments |                                 |   |   |   |   |   |   |
| Interest rate swap agreements                     | Other accrued liabilities            |   | $ | 14,404 |   |   | $ | 18,011 |   |
|                                              |                                 |   |   |   |   |   |   |   |   |
| Total Derivative Liabilities                      |                                 |   | $ | 14,404 |   |   | $ | 18,011 |   |

|                                              |                                                |   | Amount of Realized Gain Recognized on Derivatives |   |   | Amount of Realized Loss Recognized on Derivatives |   |
|---------------------------------------------------|-----------------------------------------------------|--------|---------------------------------------------------|--------|--------|---------------------------------------------------|--------|
|                                              | Location of Realized Loss Recognized on Derivatives |   | Thirteen Weeks Ended April 2, 2011                |   |   | Thirteen Weeks Ended April 3, 2010                |   |
| Derivatives not designated as hedging instruments |                                                |   |                                              |   |   |                                              |   |
| Interest rate swap agreements                     | Other expense                                       |   | $                                                 | (1,407 | )      |                                              | $      | 4,802 |   |
|                                              |                                                |   |                                              |   |   |                                              |   |   |   |
| Total                                             |                                                |   | $                                                 | (1,407 | )      |                                              | $      | 4,802 |   |

|                          |                                                                               |   | Amount of Loss Reclassified from Accumulated OCI Into Income (Effective Portion) |   |   | Amount of Loss Reclassified from Accumulated OCI Into Income (Effective Portion) |   |
|-------------------------------|------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------|--------|
|                          | Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion) |   | Thirteen Weeks Ended April 2, 2011                                               |   |   | Thirteen Weeks Ended April 3, 2010                                               |   |
| Cash Flow Hedges              |                                                                               |   |                                                                             |   |   |                                                                             |   |
| Interest rate swap agreements | Other expense                                                                      |   | $                                                                                | 1,169  |   |                                                                             | $      | 5,114 |   |
|                          |                                                                               |   |                                                                             |   |   |                                                                             |   |   |   |
| Total                         |                                                                               |   | $                                                                                | 1,169  |   |                                                                             | $      | 5,114 |   |

----

Table of Contents

|                          |                            | Fair Value Measurements on a Recurring Basis |   |
|-------------------------------|---------------------------------|----------------------------------------------------------------------------|--------|
|                          |                            | as of April 2, 2011                                              |   |
|                          |                            | Level 1                                                               |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Assets                        |                            |                                                                       |   |   |   |   |   |   |   |   |   |   |
| Marketable securities         |                            | $                                                                          | 1,597  |   |   | $ | - |   |   | $ | - |   |   | $ | 1,597 |   |
|                          |                            |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                  |                            | $                                                                          | 1,597  |   |   | $ | - |   |   | $ | - |   |   | $ | 1,597 |   |
|                          |                            |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                   |                            |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap agreements |                            | $                                                                          | -      |   |   | $ | 14,404 |   |   |   |   |   |   | $ | 14,404 |   |
|                          |                            |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities             |                            | $                                                                          | -      |   |   | $ | 14,404 |   |   | $ | - |   |   | $ | 14,404 |   |
|                          |                            |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |                            | Fair Value Measurements on a Recurring Basis |   |
|                          | as of January 1, 2011 |                                                                       |
|                          |                            | Level 1                                                               |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Assets                        |                            |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Marketable securities         |                            | $                                                                          | 1,182  |   |   | $ | - |   |   | $ | - |   |   | $ | 1,182 |   |
| Interest rate swap agreements |                            |                                                                       | -      |   |   |   | 1,030 |   |   |   | - |   |   |   | 1,030 |   |
|                          |                            |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                  |                            | $                                                                          | 1,182  |   |   | $ | 1,030 |   |   | $ | - |   |   | $ | 2,212 |   |
|                          |                            |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                   |                            |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate swap agreements |                            | $                                                                          | -      |   |   | $ | 18,011 |   |   | $ | - |   |   | $ | 18,011 |   |
|                          |                            |                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities             |                            | $                                                                          | -      |   |   | $ | 18,011 |   |   | $ | - |   |   | $ | 18,011 |   |

|                               | April 2, 2011   |   |
|------------------------------------|-----------------|--------|
|                               | Carrying Value  |   | Fair Value |   |
| Senior secured term loan facility  |            | $      | 388,125 |   |   | $ | 385,602 |   |
| Senior notes due 2015              |            |   | 325,000 |   |   |   | 335,969 |   |
| Senior subordinated notes due 2017 |            |   | 188,000 |   |   |   | 199,280 |   |
|                               |            |   |
|                               | January 1, 2011 |   |
|                               | Carrying Value  |   | Fair Value |   |
| Senior secured term loan facility  |            | $      | 388,125 |   |   | $ | 384,244 |   |
| Senior notes due 2015              |            |   | 325,000 |   |   |   | 338,000 |   |
| Senior subordinated notes due 2017 |            |   | 188,000 |   |   |   | 195,990 |   |

----

Table of Contents

| Thirteen Weeks Ended April 2, 2011                             |   | Retail |   |   | Wholesale |   |   | International |   |   | Unallocated/Corporate/Other |   |   | Balance per Condensed Consolidated Statements of Operations |    |
|---------------------------------------------------------------------|--------|--------|--------|--------|-----------|--------|--------|---------------|--------|--------|-----------------------------|--------|--------|-----------------------------------------------------------------------|---------|
| Sales                                                               |   | $      | 74,777 |   |      | $      | 47,449 |          |   | $      | 21,888                      |   |   | $                                                                     | -       |   |   | $ | 144,114 |   |
| Gross profit                                                        |   |   | 47,351 |   |      |   | 22,688 |          |   |   | 9,318                       |   |   |                                                                  | (106    | ) |   |   | 79,251 |   |
| Selling expenses                                                    |   |   | 41,143 |   |      |   | 3,208  |          |   |   | 5,233                       |   |   |                                                                  | 3,475   |   |   |   | 53,059 |   |
| Operating income                                                    |   |   | 6,208  |   |      |   | 19,480 |          |   |   | 4,085                       |   |   |                                                                  | (22,175 | ) |   |   | 7,598 |   |
| Interest and other expense, net                                     |   |   | -      |   |      |   | -      |          |   |   | -                           |   |   |                                                                  | (15,804 | ) |   |   | (15,804 | ) |
|                                                                |   |   |   |   |      |   |   |          |   |   |                        |   |   |                                                                  |    |   |   |   |   |   |
| Income from continuing operations before provision for income taxes |   |   |   |   |      |   |   |          |   |   |                        |   | $      | (8,206                                                                | )       |

| Thirteen Weeks Ended April 3, 2010                             |   | Retail |   |   | Wholesale |   |   | International |   |   | Unallocated/Corporate/Other |   |   | Balance per Condensed Consolidated Statements of Operations |    |
|---------------------------------------------------------------------|--------|--------|--------|--------|-----------|--------|--------|---------------|--------|--------|-----------------------------|--------|--------|-----------------------------------------------------------------------|---------|
| Sales                                                               |   | $      | 73,695 |   |      | $      | 50,693 |          |   | $      | 16,587                      |   |   | $                                                                     | -       |   |   | $ | 140,975 |   |
| Gross profit                                                        |   |   | 48,390 |   |      |   | 23,767 |          |   |   | 6,573                       |   |   |                                                                  | (67     | ) |   |   | 78,663 |   |
| Selling expenses                                                    |   |   | 39,391 |   |      |   | 2,856  |          |   |   | 3,687                       |   |   |                                                                  | 3,634   |   |   |   | 49,568 |   |
| Operating income                                                    |   |   | 8,999  |   |      |   | 20,911 |          |   |   | 2,886                       |   |   |                                                                  | (21,180 | ) |   |   | 11,616 |   |
| Interest and other expense, net                                     |   |   | -      |   |      |   | -      |          |   |   | -                           |   |   |                                                                  | (24,539 | ) |   |   | (24,539 | ) |
|                                                                |   |   |   |   |      |   |   |          |   |   |                        |   |   |                                                                  |    |   |   |   |   |   |
| Income from continuing operations before provision for income taxes |   |   |   |   |      |   |   |          |   |   |                        |   |   |                                                                  | $       | (12,923 | ) |

----

Table of Contents

|                                        |   |     |   |   |   |   |      |         |   |   | Non        |   |   |         |   |   |         |   |
|---------------------------------------------|--------|----------|--------|--------|--------|--------|-----------|--------------|--------|--------|------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                        |   | Yankee   |   |   | Yankee |   |      | Guarantor    |   |   | Guarantor  |   |   | Intercompany |   |   |         |   |
| ASSETS                                      |   | Holdings |   |   | Candle |   |      | Subsidiaries |   |   | Subsidiary |   |   | Eliminations |   |   | Consolidated |   |
|                                        |   |     |   |   |   |   |      |         |   |   |       |   |   |         |   |   |         |   |
| CURRENT ASSETS:                             |   |     |   |   |   |   |      |         |   |   |       |   |   |         |   |   |         |   |
| Cash                                        |   | $        | -      |   |   | $      | 2,033     |         |   | $      | 1,384      |   |   | $            | 626    |   |         | $      | - |   |   | $ | 4,043 |   |
| Accounts receivable, net                    |   |     | -      |   |   |   | 33,824    |         |   |   | 46         |   |   |         | 14,753 |   |         |   | - |   |   |   | 48,623 |   |
| Inventory                                   |   |     | -      |   |   |   | 72,487    |         |   |   | 82         |   |   |         | 12,652 |   |         |   | - |   |   |   | 85,221 |   |
| Prepaid expenses and other current assets   |   |     | -      |   |   |   | 17,739    |         |   |   | 223        |   |   |         | 48     |   |         |   | - |   |   |   | 18,010 |   |
| Deferred tax assets                         |   |     | -      |   |   |   | 10,607    |         |   |   | 56         |   |   |         | -      |   |         |   | - |   |   |   | 10,663 |   |
|                                        |   |     |   |   |   |   |      |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| TOTAL CURRENT ASSETS                        |   |     | -      |   |   |   | 136,690   |         |   |   | 1,791      |   |   |         | 28,079 |   |         |   | - |   |   |   | 166,560 |   |
|                                        |   |     |   |   |   |   |      |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| PROPERTY, PLANT AND EQUIPMENT, NET          |   |     | -      |   |   |   | 114,657   |         |   |   | 76         |   |   |         | 2,443  |   |         |   | - |   |   |   | 117,176 |   |
| GOODWILL                                    |   |     | -      |   |   |   | 643,570   |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 643,570 |   |
| INTANGIBLE ASSETS                           |   |     | -      |   |   |   | 278,416   |         |   |   | -          |   |   |         | 266    |   |         |   | - |   |   |   | 278,682 |   |
| DEFERRED FINANCING COSTS                    |   |     | -      |   |   |   | 13,456    |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 13,456 |   |
| OTHER ASSETS                                |   |     | -      |   |   |   | 2,113     |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 2,113 |   |
| INTERCOMPANY RECEIVABLES                    |   |     |   |   |   |   | 22,999    |         |   |   | 267        |   |   |         |   |   |         |   | (23,266 | ) |   |   | - |   |
| INVESTMENT IN SUBSIDIARIES                  |   |     | 69,163 |   |   |   | 3,638     |         |   |   | -          |   |   |         | -      |   |         |   | (72,801 | ) |   |   | - |   |
|                                        |   |     |   |   |   |   |      |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| TOTAL ASSETS                                |   | $        | 69,163 |   |   | $      | 1,215,539 |         |   | $      | 2,134      |   |   | $            | 30,788 |   |         | $      | (96,067 | ) |   | $ | 1,221,557 |   |
|                                        |   |     |   |   |   |   |      |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDER'S EQUITY        |   |     |   |   |   |   |      |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
|                                        |   |     |   |   |   |   |      |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| CURRENT LIABILITIES:                        |   |     |   |   |   |   |      |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| Accounts payable                            |   | $        | -      |   |   | $      | 22,557    |         |   | $      | 30         |   |   | $            | 2,531  |   |         | $      | - |   |   | $ | 25,118 |   |
| Accrued payroll                             |   |     | -      |   |   |   | 8,255     |         |   |   | 66         |   |   |         | 481    |   |         |   | - |   |   |   | 8,802 |   |
| Accrued interest                            |   |     | -      |   |   |   | 6,009     |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 6,009 |   |
| Accrued purchases of property and equipment |   |     | -      |   |   |   | 2,800     |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 2,800 |   |
| Current portion of capital leases           |   |     | -      |   |   |   | 642       |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 642 |   |
| Other accrued liabilities                   |   |     | -      |   |   |   | 30,663    |         |   |   | 1,396      |   |   |         | 1,514  |   |         |   | - |   |   |   | 33,573 |   |
|                                        |   |     |   |   |   |   |      |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| TOTAL CURRENT LIABILITIES                   |   |     | -      |   |   |   | 70,926    |         |   |   | 1,492      |   |   |         | 4,526  |   |         |   | - |   |   |   | 76,944 |   |
|                                        |   |     |   |   |   |   |      |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| DEFERRED TAX LIAIBILITY                     |   |     | -      |   |   |   | 100,297   |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 100,297 |   |
| LONG-TERM DEBT                              |   |     | -      |   |   |   | 959,125   |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 959,125 |   |
| DEFERRED RENT                               |   |     | -      |   |   |   | 11,856    |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 11,856 |   |
| CAPITAL LEASES, NET OF CURRENT PORTION      |   |     | -      |   |   |   | 1,560     |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 1,560 |   |
| OTHER LONG-TERM LIABILITIES                 |   |     | -      |   |   |   | 2,612     |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 2,612 |   |
| INTERCOMPANY PAYABLES                       |   |     | -      |   |   |   | -         |         |   |   | -          |   |   |         | 23,266 |   |         |   | (23,266 | ) |   |   | - |   |
| STOCKHOLDER'S EQUITY                        |   |     | 69,163 |   |   |   | 69,163    |         |   |   | 642        |   |   |         | 2,996  |   |         |   | (72,801 | ) |   |   | 69,163 |   |
|                                        |   |     |   |   |   |   |      |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY  |   | $        | 69,163 |   |   | $      | 1,215,539 |         |   | $      | 2,134      |   |   | $            | 30,788 |   |         | $      | (96,067 | ) |   | $ | 1,221,557 |   |

----

Table of Contents

|                                        |   | Yankee Holdings |    |   | Yankee Candle |   |      | Guarantor Subsidiaries |   |   | Non Guarantor Subsidiary |   |   | Intercompany Eliminations |    |   | Consolidated |   |
|---------------------------------------------|--------|-----------------|---------|--------|---------------|--------|-----------|------------------------|--------|--------|--------------------------|--------|--------|---------------------------|---------|--------|--------------|--------|
| ASSETS                                      |   |            |    |   |          |   |      |                   |   |   |                     |   |   |                      |    |   |         |   |
| CURRENT ASSETS:                             |   |            |    |   |          |   |      |                   |   |   |                     |   |   |                      |    |   |         |   |
| Cash                                        |   | $               | — |   |          | $      | 8,702     |                   |   | $      | 1,868                    |   |   | $                         | 2,143   |   |         | $      | — |   |   | $ | 12,713 |   |
| Accounts receivable, net                    |   |            | — |   |          |   | 31,960    |                   |   |   | 176                      |   |   |                      | 14,801  |   |         |   | — |   |   |   | 46,937 |   |
| Inventory                                   |   |            | — |   |          |   | 57,427    |                   |   |   | 87                       |   |   |                      | 9,873   |   |         |   | — |   |   |   | 67,387 |   |
| Prepaid expenses and other current assets   |   |            | — |   |          |   | 10,032    |                   |   |   | 195                      |   |   |                      | 586     |   |         |   | — |   |   |   | 10,813 |   |
| Deferred tax assets                         |   |            | — |   |          |   | 11,577    |                   |   |   | 65                       |   |   |                      | — |   |         |   | — |   |   |   | 11,642 |   |
|                                        |   |            |    |   |          |   |      |                   |   |   |                     |   |   |                      |    |   |         |   |   |   |   |   |   |   |
| TOTAL CURRENT ASSETS                        |   |            | — |   |          |   | 119,698   |                   |   |   | 2,391                    |   |   |                      | 27,403  |   |         |   | — |   |   |   | 149,492 |   |
|                                        |   |            |    |   |          |   |      |                   |   |   |                     |   |   |                      |    |   |         |   |   |   |   |   |   |   |
| PROPERTY AND EQUIPMENT, NET                 |   |            | — |   |          |   | 116,377   |                   |   |   | 55                       |   |   |                      | 2,354   |   |         |   | — |   |   |   | 118,786 |   |
| GOODWILL                                    |   |            | — |   |          |   | 643,570   |                   |   |   | —                  |   |   |                      | — |   |         |   | — |   |   |   | 643,570 |   |
| INTANGIBLE ASSETS                           |   |            | — |   |          |   | 281,465   |                   |   |   | —                  |   |   |                      | 284     |   |         |   | — |   |   |   | 281,749 |   |
| DEFERRED FINANCING COSTS                    |   |            | — |   |          |   | 14,271    |                   |   |   | —                  |   |   |                      | — |   |         |   | — |   |   |   | 14,271 |   |
| OTHER ASSETS                                |   |            | — |   |          |   | 1,832     |                   |   |   | —                  |   |   |                      | — |   |         |   | — |   |   |   | 1,832 |   |
| INTERCOMPANY RECEIVABLES                    |   |            | — |   |          |   | 23,214    |                   |   |   | 430                      |   |   |                      | — |   |         |   | (23,644 | ) |   |   | — |   |
| INVESTMENT IN SUBSIDIARIES                  |   |            | 70,008  |   |          |   | 3,625     |                   |   |   | —                  |   |   |                      | — |   |         |   | (73,633 | ) |   |   | — |   |
|                                        |   |            |    |   |          |   |      |                   |   |   |                     |   |   |                      |    |   |         |   |   |   |   |   |   |   |
| TOTAL ASSETS                                |   | $               | 70,008  |   |          | $      | 1,204,052 |                   |   | $      | 2,876                    |   |   | $                         | 30,041  |   |         | $      | (97,277 | ) |   | $ | 1,209,700 |   |
|                                        |   |            |    |   |          |   |      |                   |   |   |                     |   |   |                      |    |   |         |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDER'S EQUITY        |   |            |    |   |          |   |      |                   |   |   |                     |   |   |                      |    |   |         |   |   |   |   |   |   |   |
|                                        |   |            |    |   |          |   |      |                   |   |   |                     |   |   |                      |    |   |         |   |   |   |   |   |   |   |
| CURRENT LIABILITIES:                        |   |            |    |   |          |   |      |                   |   |   |                     |   |   |                      |    |   |         |   |   |   |   |   |   |   |
| Accounts payable                            |   | $               | — |   |          | $      | 25,025    |                   |   | $      | 46                       |   |   | $                         | 1,220   |   |         | $      | — |   |   | $ | 26,291 |   |
| Accrued payroll                             |   |            | — |   |          |   | 12,317    |                   |   |   | 31                       |   |   |                      | 321     |   |         |   | — |   |   |   | 12,669 |   |
| Accrued interest                            |   |            | — |   |          |   | 17,509    |                   |   |   | —                  |   |   |                      | — |   |         |   | — |   |   |   | 17,509 |   |
| Accrued income taxes                        |   |            | — |   |          |   | 18,639    |                   |   |   | —                  |   |   |                      | 201     |   |         |   | — |   |   |   | 18,840 |   |
| Accrued purchases of property and equipment |   |            | — |   |          |   | 2,269     |                   |   |   | —                  |   |   |                      | — |   |         |   | — |   |   |   | 2,269 |   |
| Current portion of capital leases           |   |            | — |   |          |   | 667       |                   |   |   | —                  |   |   |                      | — |   |         |   | — |   |   |   | 667 |   |
| Other accrued liabilities                   |   |            | — |   |          |   | 41,679    |                   |   |   | 1,960                    |   |   |                      | 1,869   |   |         |   | — |   |   |   | 45,508 |   |
|                                        |   |            |    |   |          |   |      |                   |   |   |                     |   |   |                      |    |   |         |   |   |   |   |   |   |   |
| TOTAL CURRENT LIABILITIES                   |   |            | — |   |          |   | 118,105   |                   |   |   | 2,037                    |   |   |                      | 3,611   |   |         |   | — |   |   |   | 123,753 |   |
|                                        |   |            |    |   |          |   |      |                   |   |   |                     |   |   |                      |    |   |         |   |   |   |   |   |   |   |
| DEFERRED TAX LIABILITIES                    |   |            | — |   |          |   | 99,432    |                   |   |   | —                  |   |   |                      | — |   |         |   | — |   |   |   | 99,432 |   |
| LONG-TERM DEBT                              |   |            | — |   |          |   | 901,125   |                   |   |   | —                  |   |   |                      | — |   |         |   | — |   |   |   | 901,125 |   |
| DEFERRED RENT                               |   |            | — |   |          |   | 11,535    |                   |   |   | —                  |   |   |                      | — |   |         |   | — |   |   |   | 11,535 |   |
| CAPITAL LEASES, NET OF CURRENT PORTION      |   |            | — |   |          |   | 1,677     |                   |   |   | —                  |   |   |                      | — |   |         |   | — |   |   |   | 1,677 |   |
| OTHER LONG-TERM LIABILITIES                 |   |            | — |   |          |   | 2,170     |                   |   |   | —                  |   |   |                      | — |   |         |   | — |   |   |   | 2,170 |   |
| INTERCOMPANY PAYABLES                       |   |            | — |   |          |   | —   |                   |   |   | —                  |   |   |                      | 23,644  |   |         |   | (23,644 | ) |   |   | — |   |
| STOCKHOLDER'S EQUITY                        |   |            | 70,008  |   |          |   | 70,008    |                   |   |   | 839                      |   |   |                      | 2,786   |   |         |   | (73,633 | ) |   |   | 70,008 |   |
|                                        |   |            |    |   |          |   |      |                   |   |   |                     |   |   |                      |    |   |         |   |   |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY  |   | $               | 70,008  |   |          | $      | 1,204,052 |                   |   | $      | 2,876                    |   |   | $                         | 30,041  |   |         | $      | (97,277 | ) |   | $ | 1,209,700 |   |

----

Table of Contents

|                                                                         |   |   |   |   |   |   |    |         |   |   | Non        |   |   |         |   |   |         |   |
|------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------------|--------|--------|------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                                                         |   | Yankee |   |   | Yankee |   |    | Guarantor    |   |   | Guarantor  |   |   | Intercompany |   |   |         |   |
|                                                                         |   | Candle |   |   | Candle |   |    | Subsidiaries |   |   | Subsidiary |   |   | Eliminations |   |   | Consolidated |   |
|                                                                         |   |   |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |
| Sales                                                                        |   | $      | -      |   |   | $      | 135,115 |         |   | $      | 527        |   |   | $            | 21,325 |   |         | $      | (12,853 | ) |   | $ | 144,114 |   |
| Cost of sales                                                                |   |   | -      |   |   |   | 59,372  |         |   |   | 163        |   |   |         | 17,012 |   |         |   | (11,684 | ) |   |   | 64,863 |   |
|                                                                         |   |   |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| Gross profit                                                                 |   |   | -      |   |   |   | 75,743  |         |   |   | 364        |   |   |         | 4,313  |   |         |   | (1,169 | ) |   |   | 79,251 |   |
| Selling expenses                                                             |   |   | -      |   |   |   | 47,492  |         |   |   | 485        |   |   |         | 5,142  |   |         |   | (60 | ) |   |   | 53,059 |   |
| General and administrative expenses                                          |   |   | -      |   |   |   | 18,544  |         |   |   | -          |   |   |         | -      |   |         |   | 50 |   |   |   | 18,594 |   |
|                                                                         |   |   |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| Operating income (loss)                                                      |   |   | -      |   |   |   | 9,707   |         |   |   | (121       | )      |   |         | (829   | )      |         |   | (1,159 | ) |   |   | 7,598 |   |
|                                                                         |   |   |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| Interest expense                                                             |   |   | -      |   |   |   | 17,679  |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 17,679 |   |
| Other income                                                                 |   |   | -      |   |   |   | (507    | )            |   |   | -          |   |   |         | (1,368 | )      |         |   | - |   |   |   | (1,875 | ) |
|                                                                         |   |   |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| (Loss) income before (benefit) provision for income taxes                    |   |   | -      |   |   |   | (7,465  | )            |   |   | (121       | )      |   |         | 539    |   |         |   | (1,159 | ) |   |   | (8,206 | ) |
|                                                                         |   |   |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| (Benefit) provision for income taxes                                         |   |   | -      |   |   |   | (2,605  | )            |   |   | (42        | )      |   |         | 147    |   |         |   | (412 | ) |   |   | (2,912 | ) |
|                                                                         |   |   |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| (Loss) income from continuing operations                                     |   |   | -      |   |   |   | (4,860  | )            |   |   | (79        | )      |   |         | 392    |   |         |   | (747 | ) |   |   | (5,294 | ) |
|                                                                         |   |   |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| Loss from discontinued operations, net of income taxes                       |   |   | -      |   |   |   | (54     | )            |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | (54 | ) |
| (Loss) income before equity in losses (earnings) of subsidiaries, net of tax |   |   | -      |   |   |   | (4,914  | )            |   |   | (79        | )      |   |         | 392    |   |         |   | (747 | ) |   |   | (5,348 | ) |
|                                                                         |   |   |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| Equity in losses (earnings) of subsidiaires, net of tax                      |   |   | 5,348  |   |   |   | (313    | )            |   |   | -          |   |   |         | -      |   |         |   | (5,035 | ) |   |   | - |   |
|                                                                         |   |   |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| Net (loss) income                                                            |   | $      | (5,348 | )      |   | $      | (4,601  | )            |   | $      | (79        | )      |   | $            | 392    |   |         | $      | 4,288 |   |   | $ | (5,348 | ) |

----

Table of Contents

|                                                             |   | Yankee Holdings |    |   | Yankee Candle |   |    | GuarantorSubsidiaries |   |   | Non Guarantor Subsidiary |   |   | Intercompany Eliminations |    |   | Consolidated |   |
|------------------------------------------------------------------|--------|-----------------|---------|--------|---------------|--------|---------|-----------------------|--------|--------|------------------------------------|--------|--------|--------------------------------|---------|--------|--------------|--------|
| Sales                                                            |   | $               | — |   |          | $      | 133,952 |                  |   | $      | 514                                |   |   | $                              | 15,938  |   |         | $      | (9,429 | ) |   | $ | 140,975 |   |
| Cost of sales                                                    |   |            | — |   |          |   | 57,441  |                  |   |   | 145                                |   |   |                           | 13,410  |   |         |   | (8,684 | ) |   |   | 62,312 |   |
|                                                             |   |            |    |   |          |   |    |                  |   |   |                               |   |   |                           |    |   |         |   |   |   |   |   |   |   |
| Gross profit                                                     |   |            | — |   |          |   | 76,511  |                  |   |   | 369                                |   |   |                           | 2,528   |   |         |   | (745 | ) |   |   | 78,663 |   |
| Selling expenses                                                 |   |            | — |   |          |   | 45,513  |                  |   |   | 450                                |   |   |                           | 3,665   |   |         |   | (60 | ) |   |   | 49,568 |   |
| General and administrative expenses                              |   |            | — |   |          |   | 16,626  |                  |   |   | —                            |   |   |                           | — |   |         |   | 53 |   |   |   | 16,679 |   |
| Restructuring charges                                            |   |            | — |   |          |   | 800     |                  |   |   | —                            |   |   |                           | — |   |         |   | — |   |   |   | 800 |   |
|                                                             |   |            |    |   |          |   |    |                  |   |   |                               |   |   |                           |    |   |         |   |   |   |   |   |   |   |
| Operating income (loss)                                          |   |            | — |   |          |   | 13,572  |                  |   |   | (81                                | )      |   |                           | (1,137  | )      |         |   | (738 | ) |   |   | 11,616 |   |
| Interest expense                                                 |   |            | — |   |          |   | 19,807  |                  |   |   | —                            |   |   |                           | — |   |         |   | — |   |   |   | 19,807 |   |
| Other expense (income)                                           |   |            | — |   |          |   | 4,875   |                  |   |   | —                            |   |   |                           | (143    | )      |         |   | — |   |   |   | 4,732 |   |
|                                                             |   |            |    |   |          |   |    |                  |   |   |                               |   |   |                           |    |   |         |   |   |   |   |   |   |   |
| Loss from continuing operations before benefit from income taxes |   |            | — |   |          |   | (11,110 | )                     |   |   | (81                                | )      |   |                           | (994    | )      |         |   | (738 | ) |   |   | (12,923 | ) |
| Benefit from income taxes                                        |   |            | — |   |          |   | (4,101  | )                     |   |   | (30                                | )      |   |                           | (278    | )      |         |   | (267 | ) |   |   | (4,676 | ) |
|                                                             |   |            |    |   |          |   |    |                  |   |   |                               |   |   |                           |    |   |         |   |   |   |   |   |   |   |
| Loss from continuing operations                                  |   |            | — |   |          |   | (7,009  | )                     |   |   | (51                                | )      |   |                           | (716    | )      |         |   | (471 | ) |   |   | (8,247 | ) |
| Loss from discontinued operations, net of income taxes           |   |            | — |   |          |   | (255    | )                     |   |   | —                            |   |   |                           | — |   |         |   | — |   |   |   | (255 | ) |
|                                                             |   |            |    |   |          |   |    |                  |   |   |                               |   |   |                           |    |   |         |   |   |   |   |   |   |   |
| Loss before equity in losses of subsidiaries, net of tax         |   |            | — |   |          |   | (7,264  | )                     |   |   | (51                                | )      |   |                           | (716    | )      |         |   | (471 | ) |   |   | (8,502 | ) |
| Equity in losses of subsidiaries, net of tax                     |   |            | 8,502   |   |          |   | 767     |                  |   |   | —                            |   |   |                           | — |   |         |   | (9,269 | ) |   |   | — |   |
|                                                             |   |            |    |   |          |   |    |                  |   |   |                               |   |   |                           |    |   |         |   |   |   |   |   |   |   |
| Net loss                                                         |   | $               | (8,502  | )      |          | $      | (8,031  | )                     |   | $      | (51                                | )      |   | $                              | (716    | )      |         | $      | 8,798 |   |   | $ | (8,502 | ) |

----

Table of Contents

|                                                                            |   |     |   |   |   |   |    |         |   |   | Non        |   |   |         |   |   |         |   |
|---------------------------------------------------------------------------------|--------|----------|--------|--------|--------|--------|---------|--------------|--------|--------|------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                                                            |   | Yankee   |   |   | Yankee |   |    | Guarantor    |   |   | Guarantor  |   |   | Intercompany |   |   |         |   |
|                                                                            |   | Holdings |   |   | Candle |   |    | Subsidiaries |   |   | Subsidiary |   |   | Eliminations |   |   | Consolidated |   |
| CASH FLOWS USED IN OPERATING ACTIVITIES:                                        |   |     |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |
| Net (loss) income                                                               |   | $        | (5,348 | )      |   | $      | (4,600  | )            |   | $      | (79        | )      |   | $            | 392    |   |         | $      | 4,287 |   |   | $ | (5,348 | ) |
| Adjustments to reconcile net (loss) income to net cash in operating activities: |   |     |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| Depreciation and amortization                                                   |   |     | -      |   |   |   | 10,034  |         |   |   | 5          |   |   |         | 200    |   |         |   | - |   |   |   | 10,239 |   |
| Gain on derivatives                                                             |   |     | -      |   |   |   | (1,408  | )            |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | (1,408 | ) |
| Unrealized gain on marketable securities                                        |   |     | -      |   |   |   | (57     | )            |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | (57 | ) |
| Equity-based compensation expense                                               |   |     | -      |   |   |   | 194     |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 194 |   |
| Deferred taxes                                                                  |   |     | -      |   |   |   | 1,236   |         |   |   | 9          |   |   |         | -      |   |         |   | - |   |   |   | 1,245 |   |
| Loss on disposal of property and equipment                                      |   |     | -      |   |   |   | 69      |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 69 |   |
| Equity in losses of subsidiaries                                                |   |     | 5,348  |   |   |   | (313    | )            |   |   | -          |   |   |         | (748   | )      |         |   | (4,287 | ) |   |   | - |   |
| Changes in assets and liabilities:                                              |   |     |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   | - |   |
| Accounts receivable, net                                                        |   |     | -      |   |   |   | (1,864  | )            |   |   | 130        |   |   |         | 534    |   |         |   | - |   |   |   | (1,200 | ) |
| Inventory                                                                       |   |     | -      |   |   |   | (15,058 | )            |   |   | 5          |   |   |         | (2,195 | )      |         |   | - |   |   |   | (17,248 | ) |
| Prepaid expenses and other assets                                               |   |     | -      |   |   |   | (1,793  | )            |   |   | (28        | )      |   |         | 168    |   |         |   | - |   |   |   | (1,653 | ) |
| Accounts payable                                                                |   |     | -      |   |   |   | (2,467  | )            |   |   | (16        | )      |   |         | 1,250  |   |         |   | - |   |   |   | (1,233 | ) |
| Income taxes payable                                                            |   |     | -      |   |   |   | (23,559 | )            |   |   | -          |   |   |         | 185    |   |         |   | - |   |   |   | (23,374 | ) |
| Accrued expenses and other current liabilities                                  |   |     | -      |   |   |   | (22,376 | )            |   |   | (529       | )      |   |         | (789   | )      |         |   | - |   |   |   | (23,694 | ) |
|                                                                            |   |     |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| NET CASH USED IN OPERATING ACTIVITIES                                           |   |     | -      |   |   |   | (61,962 | )            |   |   | (503       | )      |   |         | (1,003 | )      |         |   | - |   |   |   | (63,468 | ) |
|                                                                            |   |     |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| CASH FLOWS USED IN INVESTING ACTIVITIES:                                        |   |     |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| Purchase of property and equipment                                              |   |     | -      |   |   |   | (3,907  | )            |   |   | (26        | )      |   |         | (191   | )      |         |   | - |   |   |   | (4,124 | ) |
| Intercompany payables/receivables                                               |   |     | -      |   |   |   | 324     |         |   |   | -          |   |   |         | -      |   |         |   | (324 | ) |   |   | - |   |
|                                                                            |   |     |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| NET CASH USED IN INVESTING ACTIVITIES                                           |   |     | -      |   |   |   | (3,583  | )            |   |   | (26        | )      |   |         | (191   | )      |         |   | (324 | ) |   |   | (4,124 | ) |
|                                                                            |   |     |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:                                    |   |     |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| Borrowings on credit facility                                                   |   |     | -      |   |   |   | 58,000  |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 58,000 |   |
| Contribution by YCC Holdings LLC                                                |   |     | -      |   |   |   | 3,000   |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 3,000 |   |
| Dividends paid to YCC Holdings LLC                                              |   |     | -      |   |   |   | (1,876  | )            |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | (1,876 | ) |
| Proceeds from issuance of common stock                                          |   |     | -      |   |   |   | 3       |         |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | 3 |   |
| Repurchase of common stock                                                      |   |     | -      |   |   |   | (86     | )            |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | (86 | ) |
| Principal payments on capital lease obligations                                 |   |     | -      |   |   |   | (165    | )            |   |   | -          |   |   |         | -      |   |         |   | - |   |   |   | (165 | ) |
| Intercompany payables/receivables                                               |   |     | -      |   |   |   | -       |         |   |   | 45         |   |   |         | (369   | )      |         |   | 324 |   |   |   | - |   |
|                                                                            |   |     |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                             |   |     | -      |   |   |   | 58,876  |         |   |   | 45         |   |   |         | (369   | )      |         |   | 324 |   |   |   | 58,876 |   |
|                                                                            |   |     |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH                                         |   |     | -      |   |   |   | -       |         |   |   | -          |   |   |         | 46     |   |         |   | - |   |   |   | 46 |   |
|                                                                            |   |     |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| NET DECREASE IN CASH                                                            |   |     | -      |   |   |   | (6,669  | )            |   |   | (484       | )      |   |         | (1,517 | )      |         |   | - |   |   |   | (8,670 | ) |
|                                                                            |   |     |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| CASH, BEGINNING  OF PERIOD                                            |   |     | -      |   |   |   | 8,702   |         |   |   | 1,868      |   |   |         | 2,143  |   |         |   | - |   |   |   | 12,713 |   |
|                                                                            |   |     |   |   |   |   |    |         |   |   |       |   |   |         |   |   |         |   |   |   |   |   |   |   |
| CASH, END  OF PERIOD                                                  |   | $        | -      |   |   | $      | 2,033   |         |   | $      | 1,384      |   |   | $            | 626    |   |         | $      | - |   |   | $ | 4,043 |   |

----

Table of Contents

|                                                                        |   | Yankee Holdings |    |   | Yankee Candle |   |    | GuarantorSubsidiaries |   |   | NonGuarantorSubsidiary |   |   | IntercompanyEliminations |    |   | Consolidated |   |
|-----------------------------------------------------------------------------|--------|-----------------|---------|--------|---------------|--------|---------|-----------------------|--------|--------|------------------------|--------|--------|--------------------------|---------|--------|--------------|--------|
| CASH FLOWS USED IN OPERATING ACTIVITIES:                                    |   |            |    |   |          |   |    |                  |   |   |                   |   |   |                     |    |   |         |   |
| Net loss                                                                    |   | $               | (8,502  | )      |          | $      | (8,031  | )                     |   | $      | (51                    | )      |   | $                        | (716    | )      |         | $      | 8,798 |   |   | $ | (8,502 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |            |    |   |          |   |    |                  |   |   |                   |   |   |                     |    |   |         |   |   |   |   |   |   |   |
| Depreciation and amortization                                               |   |            | — |   |          |   | 10,574  |                  |   |   | 3                      |   |   |                     | 127     |   |         |   | — |   |   |   | 10,704 |   |
| Realized loss on derivative contracts                                       |   |            | — |   |          |   | 4,802   |                  |   |   | —                |   |   |                     | — |   |         |   | — |   |   |   | 4,802 |   |
| Unrealized gain on marketable securities                                    |   |            | — |   |          |   | (54     | )                     |   |   | —                |   |   |                     | — |   |         |   | — |   |   |   | (54 | ) |
| Share-based compensation expense                                            |   |            | — |   |          |   | 329     |                  |   |   | —                |   |   |                     | — |   |         |   | — |   |   |   | 329 |   |
| Deferred taxes                                                              |   |            | — |   |          |   | (998    | )                     |   |   | 133                    |   |   |                     | — |   |         |   | — |   |   |   | (865 | ) |
| Gain on disposal of property and equipment                                  |   |            | — |   |          |   | (5      | )                     |   |   | —                |   |   |                     | — |   |         |   | — |   |   |   | (5 | ) |
| Equity in losses of subsidiaries                                            |   |            | 8,502   |   |          |   | 767     |                  |   |   | —                |   |   |                     | (471    | )      |         |   | (8,798 | ) |   |   | — |   |
| Changes in assets and liabilities                                           |   |            |    |   |          |   |    |                  |   |   |                   |   |   |                     |    |   |         |   |   |   |   |   |   |   |
| Accounts receivable, net                                                    |   |            | — |   |          |   | 4,179   |                  |   |   | 180                    |   |   |                     | (1,294  | )      |         |   | — |   |   |   | 3,065 |   |
| Inventory                                                                   |   |            | — |   |          |   | (8,619  | )                     |   |   | (6                     | )      |   |                     | (668    | )      |         |   | — |   |   |   | (9,293 | ) |
| Prepaid expenses and other assets                                           |   |            | — |   |          |   | (1,993  | )                     |   |   | 2                      |   |   |                     | (721    | )      |         |   | — |   |   |   | (2,712 | ) |
| Accounts payable                                                            |   |            | — |   |          |   | 4,093   |                  |   |   | (59                    | )      |   |                     | 629     |   |         |   | — |   |   |   | 4,663 |   |
| Income taxes                                                                |   |            | — |   |          |   | (4,726  | )                     |   |   | —                |   |   |                     | — |   |         |   | — |   |   |   | (4,726 | ) |
| Accrued expenses and other liabilities                                      |   |            | — |   |          |   | (24,419 | )                     |   |   | (597                   | )      |   |                     | (1      | )      |         |   | — |   |   |   | (25,017 | ) |
|                                                                        |   |            |    |   |          |   |    |                  |   |   |                   |   |   |                     |    |   |         |   |   |   |   |   |   |   |
| NET CASH USED IN OPERATING ACTIVITIES                                       |   |            | — |   |          |   | (24,101 | )                     |   |   | (395                   | )      |   |                     | (3,115  | )      |         |   | — |   |   |   | (27,611 | ) |
|                                                                        |   |            |    |   |          |   |    |                  |   |   |                   |   |   |                     |    |   |         |   |   |   |   |   |   |   |
| CASH FLOWS USED IN INVESTING ACTIVITIES:                                    |   |            |    |   |          |   |    |                  |   |   |                   |   |   |                     |    |   |         |   |   |   |   |   |   |   |
| Purchases of property and equipment                                         |   |            | — |   |          |   | (2,891  | )                     |   |   | —                |   |   |                     | (41     | )      |         |   | — |   |   |   | (2,932 | ) |
| Proceeds from the sale of property and equipment                            |   |            | — |   |          |   | 192     |                  |   |   | —                |   |   |                     | — |   |         |   | — |   |   |   | 192 |   |
| Intercompany payables/receivables                                           |   |            | — |   |          |   | (1,598  | )                     |   |   | —                |   |   |                     | — |   |         |   | 1,598 |   |   |   | — |   |
|                                                                        |   |            |    |   |          |   |    |                  |   |   |                   |   |   |                     |    |   |         |   |   |   |   |   |   |   |
| NET CASH USED IN INVESTING ACTIVITIES                                       |   |            | — |   |          |   | (4,297  | )                     |   |   | —                |   |   |                     | (41     | )      |         |   | 1,598 |   |   |   | (2,740 | ) |
|                                                                        |   |            |    |   |          |   |    |                  |   |   |                   |   |   |                     |    |   |         |   |   |   |   |   |   |   |
| CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:                                |   |            |    |   |          |   |    |                  |   |   |                   |   |   |                     |    |   |         |   |   |   |   |   |   |   |
| Repayments under Credit Facility                                            |   |            |    |   |          |   | (11,000 | )                     |   |   | —                |   |   |                     | — |   |         |   | — |   |   |   | (11,000 | ) |
| Borrowings under Credit Facility                                            |   |            | — |   |          |   | 37,000  |                  |   |   | —                |   |   |                     | — |   |         |   | — |   |   |   | 37,000 |   |
| Proceeds from issuance of common stock                                      |   |            | — |   |          |   | 25      |                  |   |   | —                |   |   |                     | — |   |         |   | — |   |   |   | 25 |   |
| Repurchase of common stock                                                  |   |            | — |   |          |   | (630    | )                     |   |   | —                |   |   |                     | — |   |         |   | — |   |   |   | (630 | ) |
| Intercompany payables/receivables                                           |   |            | — |   |          |   | — |                  |   |   | 78                     |   |   |                     | 1,520   |   |         |   | (1,598 | ) |   |   | — |   |
|                                                                        |   |            |    |   |          |   |    |                  |   |   |                   |   |   |                     |    |   |         |   |   |   |   |   |   |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                   |   |            | — |   |          |   | 25,395  |                  |   |   | 78                     |   |   |                     | 1,520   |   |         |   | (1,598 | ) |   |   | 25,395 |   |
|                                                                        |   |            |    |   |          |   |    |                  |   |   |                   |   |   |                     |    |   |         |   |   |   |   |   |   |   |
| EFFECT EXCHANGE RATE CHANGES ON CASH                                        |   |            | — |   |          |   | — |                  |   |   | —                |   |   |                     | (92     | )      |         |   | — |   |   |   | (92 | ) |
|                                                                        |   |            |    |   |          |   |    |                  |   |   |                   |   |   |                     |    |   |         |   |   |   |   |   |   |   |
| NET DECREASE IN CASH                                                        |   |            | — |   |          |   | (3,003  | )                     |   |   | (317                   | )      |   |                     | (1,728  | )      |         |   | — |   |   |   | (5,048 | ) |
|                                                                        |   |            |    |   |          |   |    |                  |   |   |                   |   |   |                     |    |   |         |   |   |   |   |   |   |   |
| CASH, BEGINNING OF PERIOD                                                   |   |            | — |   |          |   | 4,588   |                  |   |   | 2,151                  |   |   |                     | 2,356   |   |         |   | — |   |   |   | 9,095 |   |
|                                                                        |   |            |    |   |          |   |    |                  |   |   |                   |   |   |                     |    |   |         |   |   |   |   |   |   |   |
| CASH, END OF PERIOD                                                         |   | $               | — |   |          | $      | 1,585   |                  |   | $      | 1,834                  |   |   | $                        | 628     |   |         | $      | — |   |   | $ | 4,047 |   |

----

Table of Contents

| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

----

Table of Contents

|                                                             |   | Thirteen Weeks Ended April 2, 2011 |   |   | Thirteen Weeks Ended April 3, 2010 |   |
|------------------------------------------------------------------|--------|------------------------------------|--------|--------|------------------------------------|--------|
| Yankee Holding Corp. Statements of Operations Data:              |   |                               |   |   |                               |   |
| Sales:                                                           |   |                               |   |   |                               |   |
| Retail                                                           |   |                               | 51.9   | %      |                               |   | 52.3 | % |
| Wholesale                                                        |   |                               | 32.9   |   |                               |   | 36.0 |   |
| International                                                    |   |                               | 15.2   |   |                               |   | 11.7 |   |
| Total net sales                                                  |   |                               | 100.0  |   |                               |   | 100.0 |   |
| Cost of sales                                                    |   |                               | 45.0   |   |                               |   | 44.2 |   |
| Gross profit                                                     |   |                               | 55.0   |   |                               |   | 55.8 |   |
| Selling expenses                                                 |   |                               | 36.8   |   |                               |   | 35.2 |   |
| General and administrative expenses                              |   |                               | 12.9   |   |                               |   | 11.8 |   |
| Restructuring charges                                            |   |                               | -      |   |                               |   | 0.6 |   |
| Operating income                                                 |   |                               | 5.3    |   |                               |   | 8.2 |   |
| Other expense, net                                               |   |                               | 11.0   |   |                               |   | 17.4 |   |
| Loss from continuing operations before benefit from income taxes |   |                               | (5.7   | )      |                               |   | (9.2 | ) |
| Benefit from income taxes                                        |   |                               | (2.0   | )      |                               |   | (3.3 | ) |
| Loss from continuing operations                                  |   |                               | (3.7   | )      |                               |   | (5.9 | ) |
| Loss from discontinued operations, net of taxes                  |   |                               | (0.0   | )      |                               |   | (0.1 | ) |
| Net loss                                                         |   |                               | (3.7   | ) %    |                               |   | (6.0 | ) % |

----

Table of Contents

----

Table of Contents

----

Table of Contents

| Net income                                                                |   | $      | 45,063  |   |
|---------------------------------------------------------------------------|--------|--------|---------|--------|
| Income tax expense                                                        |   |   | 25,452  |   |
| Interest expense, net (excluding amortization of deferred financing fees) |   |   | 71,516  |   |
| Depreciation and amortization                                             |   |   | 42,511  |   |
|                                                                      |   |   |    |   |
|                                                                      |   |   |    |   |
| EBITDA                                                                    |   |   | 184,542 |   |
| Equity-based compensation expense                                         |   |   | 3,926   |   |
| Restructuring charges                                                     |   |   | 29      |   |
| Fees paid pursuant to management agreement                                |   |   | 1,500   |   |
| Other non-cash expenses                                                   |   |   | 1,988   |   |
|                                                                      |   |   |    |   |
|  Consolidated Adjusted EBITDA under the Credit Facility              |   | $      | 191,985 |   |

----

Table of Contents

| Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
|---------|------------------------------------------------------------|

----

Table of Contents

| Item 4. | Controls and Procedures |
|---------|-------------------------|

| Item 1. | Legal Proceedings |
|---------|-------------------|

----

Table of Contents

| Item 1A. | Risk Factors |
|----------|--------------|

----

Table of Contents

----

Table of Contents

|   | • | withholding taxes or other taxes on our foreign income, tariffs or other restrictions on foreign trade and investment, including currency exchange controls imposed by or in other countries; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the inability to obtain, maintain or enforce intellectual property rights in other jurisdictions, at a reasonable cost or at all; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | • | difficulty with staffing and managing widespread operations; |
|--------|---------|--------------------------------------------------------------|

|   | • | trade barriers such as export requirements, tariffs, taxes and other restrictions and expenses, which could increase the prices of our products and make our product offering less competitive in some countries; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our establishing ourselves and becoming tax resident in foreign jurisdictions. |
|--------|---------|--------------------------------------------------------------------------------|

----

Table of Contents

|   | • | changes in the general economic conditions in the United States including, but not limited to, consumer debt levels, financial market performance, interest rates, consumer sentiment, inflation, commodity prices, unemployment and other factors that impact consumer confidence and spending; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | changes in levels of competition from our current competitors and potential new competition from both retail stores and alternative methods or channels of distribution; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | loss of a significant vendor or prolonged disruption of product supply; |
|--------|---------|-------------------------------------------------------------------------|

|   | • | the successful introduction of new products and technologies in our product categories, including the frequency of such introductions, the level of consumer acceptance of new products and technologies, and their impact on demand for existing products and technologies; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the impact of changes in pricing and profit margins associated with our sourced products or raw materials; |
|--------|---------|------------------------------------------------------------------------------------------------------------|

|   | • | changes in income tax laws or regulations, or in interpretations of existing income tax laws or regulations; |
|--------|---------|--------------------------------------------------------------------------------------------------------------|

|   | • | adverse outcomes from significant litigation matters; |
|--------|---------|-------------------------------------------------------|

|   | • | changes in the interpretation or enforcement of laws and regulations regarding our business or the sale of our products, or the ingredients contained in our products; or the imposition of new or additional restrictions or regulations regarding the same; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | changes in our ability to attract, retain and develop highly-qualified employees or changes in the cost or availability of a sufficient labor force to manage and support our operations; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | changes in our ability to meet objectives with regard to business acquisitions or new business ventures; |
|--------|---------|----------------------------------------------------------------------------------------------------------|

|   | • | the occurrence of severe weather events prohibiting or discouraging consumers from traveling to retail or wholesale locations; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------|

|   | • | the disruption of global, national or regional transportation systems; |
|--------|---------|------------------------------------------------------------------------|

|   | • | the occurrence of certain material events including natural disasters, acts of terrorism, the outbreak of war or other significant national or international events; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | an outbreak of certain public health issues, including contagious diseases; |
|--------|---------|-----------------------------------------------------------------------------|

|   | • | our ability to react in a timely manner and maintain our critical business processes and information systems capabilities in a disaster recovery situation; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | changes in our ability to manage our existing computer systems and technology infrastructures, and our ability to implement successfully new computer systems and technology infrastructures. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
|---------|--------------------------------------------------------------|

| Item 3. | Defaults Upon Senior Securities. |
|---------|----------------------------------|

----

Table of Contents

| Item 5. | Other Information. |
|---------|--------------------|

| Item 6. | Exhibits |
|---------|----------|

| 10.1   |   | Yankee Candle Investments LLC 2011 Incentive Equity Plan, filed with YCC Holdings LLC’s Form S-4 filed on April 14, 2011 (Reg. No. 333-173505) and incorporated by reference                                                                                                                                                                                       |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |
| 10.2   |   | Unitholders Agreement, dated February 8, 2011, by and among Yankee Candle Investments LLC, Madison Dearborn Capital Partners V-A, L.P., Madison Dearborn Capital Partners V-C, L.P., and Madison Dearborn Capital Partners V Executive-A, L.P., filed with YCC Holdings LLC’s Form S-4 filed on April 14, 2011 (Reg. No. 333-173505) and incorporated by reference |
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |
| 10.3   |   | Form of Class A Unit Exchange Agreement (executive form), filed with YCC Holdings LLC’s Form S-4 filed on April 14, 2011 (Reg. No. 333-173505) and incorporated by reference                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |
| 10.4   |   | Form of Class A Unit Exchange Agreement (director form), filed with YCC Holdings LLC’s Form S-4 filed on April 14, 2011 (Reg. No. 333-173505) and incorporated by reference                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |
| 10.5   |   | Form of Class A Unit Exchange Agreement (management form), filed with YCC Holdings LLC’s Form S-4 filed on April 14, 2011 (Reg. No. 333-173505) and incorporated by reference                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |
| 10.6   |   | Form of Class B Executive Unit Exchange Agreement (executive form), filed with YCC Holdings LLC’s Form S-4 filed on April 14, 2011 (Reg. No. 333-173505) and incorporated by reference                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |
| 10.7   |   | Form of Class B Executive Unit Exchange Agreement (management form), filed with YCC Holdings LLC’s Form S-4 filed on April 14, 2011 (Reg. No. 333-173505) and incorporated by reference                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |
| 10.8   |   | Form of Class C Executive Unit Exchange Agreement (executive form), filed with YCC Holdings LLC’s Form S-4 filed on April 14, 2011 (Reg. No. 333-173505) and incorporated by reference                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |
| 10.9   |   | Form of Class C Executive Unit Exchange Agreement (director form), filed with YCC Holdings LLC’s Form S-4 filed on April 14, 2011 (Reg. No. 333-173505) and incorporated by reference                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |
| 10.10  |   | Form of Class C Executive Unit Exchange Agreement (management form), filed with YCC Holdings LLC’s Form S-4 filed on April 14, 2011 (Reg. No. 333-173505) and incorporated by reference                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |
| 31.1   |   | Certification of Harlan M. Kent Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, dated May 17, 2011                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |
| 31.2   |   | Certification of Gregory W. Hunt Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, dated May 17, 2011                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                     |
| 32.1   |   | Certification of Harlan M. Kent Pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934, dated May 17, 2011                                                                                                                                                                                                                                                 |
|   |   |
| 32.2   |   | Certification of Gregory W. Hunt Pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934, dated May 17, 2011                                                                                                                                                                                                                                                |

----

Table of Contents

SIGNATURES

|               |   |                 |   |                                                 |
|--------------------|--------|----------------------|--------|------------------------------------------------------|
|               |   | YANKEE HOLDING CORP. |
|               |   |                 |   |                                                 |
| Date: May 17, 2011 |   | By:                  |   | /s/    GREGORY W. HUNT           |
|               |   |                 |   | Gregory W. Hunt                                      |
|               |   |                 |   | Executive Vice President and Chief Financial Officer |
|               |   |                 |   | (Principal Financial and Accounting Officer)         |

----