----

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

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

| Delaware                                                      | 06-0967107                          |
|---------------------------------------------------------------|-------------------------------------|
| (State or other jurisdiction ofincorporation or organization) | (I.R.S. EmployerIdentification No.) |
|                                                          |                                |
| 114 W. 41st Street, New York, New York                        | 10036                               |
| (Address of principal executive offices)                      | (Zip Code)                          |

----

|   | Large accelerated filer  ̈                                                                              |                             | Accelerated filer  ̈       |
|--------|-------------------------------------------------------------------------------------------------------------|----------------------------------|-------------------------------------------------------------------|
|   |                                                                                                        |                             |                                                              |
|   | Non-accelerated filer   ̈    (Do not check if smaller reporting company)  | Smaller reporting company x |

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| “SAFE HARBOR” STATEMENT                                                                                         | ii |
|-----------------------------------------------------------------------------------------------------------------------------|----|
| PART I–FINANCIAL INFORMATION                                                                                          | 1  |
| Item 1.    Financial Statements.                                                                        | 1  |
| Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations. | 10 |
| Item 3.    Quantitative and Qualitative Disclosures About Market Risk.                                  | 14 |
| Item 4.    Controls and Procedures.                                                                     | 14 |
| PART II–OTHER INFORMATION                                                                                             | 14 |
| Item 1.    Legal Proceedings.                                                                           | 14 |
| Item 1A. Risk Factors.                                                                                                      | 14 |
| Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.                                 | 15 |
| Item 5.    Other Information.                                                                           | 15 |
| Item 6.    Exhibits                                                                                     | 16 |

----

----

|                                                                                                                                                       |   | April 2, 2011 |    |   | December 31, 2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
| (In thousands, except par value and shares)                                                                                                                |   |          |    |   |              |   |
|  Current assets:                                                                                                                                      |   |          |    |   |              |   |
| Cash and cash equivalents                                                                                                                                  |   | $             | 36,482  |   |              | $      | 33,720 |   |
| Restricted cash                                                                                                                                            |   |          | 1,813   |   |              |   | 2,725 |   |
| Accounts receivable, net                                                                                                                                   |   |          | 1,495   |   |              |   | 13,529 |   |
| Other receivables                                                                                                                                          |   |          | 447     |   |              |   | 679 |   |
| Inventories, net                                                                                                                                           |   |          | 4,668   |   |              |   | 4,128 |   |
| Other current assets                                                                                                                                       |   |          | 4,053   |   |              |   | 2,338 |   |
| Assets of discontinued operations                                                                                                                          |   |          | 8,747   |   |              |   | 9,528 |   |
|                                                                                                                                                       |   |          |    |   |              |   |   |   |
| Total current assets                                                                                                                                       |   |          | 57,705  |   |              |   | 66,647 |   |
|  Fixed assets, net                                                                                                                                    |   |          | 9,115   |   |              |   | 9,495 |   |
|  Goodwill                                                                                                                                             |   |          | 1,204   |   |              |   | 1,204 |   |
|  Other assets                                                                                                                                         |   |          | 1,160   |   |              |   | 1,207 |   |
|                                                                                                                                                       |   |          |    |   |              |   |   |   |
| Total assets                                                                                                                                               |   | $             | 69,184  |   |              | $      | 78,553 |   |
|                                                                                                                                                       |   |          |    |   |              |   |   |   |
|                                                                                                                                                       |   |          |    |   |              |   |   |   |
|  Current liabilities:                                                                                                                                 |   |          |    |   |              |   |   |   |
|      Current portion of long-term debt                                                                                            |   | $             | 72      |   |              | $      | 36 |   |
|      Accounts payable                                                                                                             |   |          | 972     |   |              |   | 3,210 |   |
|      Accrued expenses and other liabilities                                                                                       |   |          | 7,016   |   |              |   | 5,773 |   |
|      Liabilities of discontinued operations                                                                                       |   |          | 2,866   |   |              |   | 6,182 |   |
|                                                                                                                                                       |   |          |    |   |              |   |   |   |
|                 Total current liabilities                                  |   |          | 10,926  |   |              |   | 15,201 |   |
|                                                                                                                                                       |   |          |    |   |              |   |   |   |
|  Long-term debt less current portion                                                                                                                  |   |          | 33      |   |              |   | 43 |   |
|  Deferred rent                                                                                                                                        |   |          | 7,245   |   |              |   | 7,210 |   |
|  Other long-term liabilities                                                                                                                          |   |          | 6,514   |   |              |   | 6,697 |   |
|                                                                                                                                                       |   |          |    |   |              |   |   |   |
|                 Total liabilities                                          |   |          | 24,718  |   |              |   | 29,151 |   |
|                                                                                                                                                       |   |          |    |   |              |   |   |   |
|                                                                                                                                                       |   |          |    |   |              |   |   |   |
|  Commitments and contingencies                                                                                                                        |   |          |    |   |              |   |   |   |
|                                                                                                                                                       |   |          |    |   |              |   |   |   |
|  Stockholders’ equity:                                                                                                                          |   |          |    |   |              |   |   |   |
| Preferred stock, $0.10 par value, 1,000,000 shares authorized at April 2, 2011 and December 31, 2010, respectively; none issued                            |   |          | — |   |              |   | — |   |
| Series A junior participating preferred stock, $0.10 par value, 10,000 shares authorized at April 2, 2011 and December 31, 2010, respectively; none issued |   |          | — |   |              |   | — |   |
| Common stock, $0.10 par value, 10,000,000 shares authorized; 8,243,784 shares issued at April 2, 2011 and December 31, 2010                                |   |          | 824     |   |              |   | 824 |   |
| Additional paid-in capital                                                                                                                                 |   |          | 30,866  |   |              |   | 30,098 |   |
| Retained earnings                                                                                                                                          |   |          | 27,556  |   |              |   | 32,553 |   |
| Treasury stock, 2,012,430 and 1,914,549 shares at cost at April 2, 2011 and December 31, 2010, respectively                                                |   |          | (14,780 | )      |              |   | (14,073 | ) |
|                                                                                                                                                       |   |          |    |   |              |   |   |   |
|                 Total stockholders’ equity                           |   |          | 44,466  |   |              |   | 49,402 |   |
|                                                                                                                                                       |   |          |    |   |              |   |   |   |
|                 Total liabilities and stockholders’ equity           |   | $             | 69,184  |   |              | $      | 78,553 |   |

----

|                                                         |   | Three Months Ended |    |
|--------------------------------------------------------------|--------|--------------------|---------|
| (In thousands, except per share data)                        |   | April 2, 2011 |    |   | April 3, 2010 |   |
| Net sales                                                    |   | $                  | 3,511   |   |   | $ | 2,559 |   |
| Cost of goods sold                                           |   |               | 2,780   |   |   |   | 2,305 |   |
|                                                         |   |               |    |   |   |   |   |   |
| Gross profit                                                 |   |               | 731     |   |   |   | 254 |   |
| Selling, general, and administrative expenses                |   |               | 4,277   |   |   |   | 4,073 |   |
| Special costs                                                |   |               | — |   |   |   | 541 |   |
|                                                         |   |               |    |   |   |   |   |   |
| Loss from operations                                         |   |               | (3,546  | ) |   |   | (4,360 | ) |
| Other income (expense):                                      |   |               |    |   |   |   |   |   |
| Interest income                                              |   |               | 1       |   |   |   | 18 |   |
| Interest expense                                             |   |               | (77     | ) |   |   | (108 | ) |
| Other, net                                                   |   |               | (4      | ) |   |   | (24 | ) |
|                                                         |   |               |    |   |   |   |   |   |
| Loss from continuing operations before income taxes          |   |               | (3,626  | ) |   |   | (4,474 | ) |
|                                                         |   |               |    |   |   |   |   |   |
| Income tax provision                                         |   |               | 69      |   |   |   | 39 |   |
|                                                         |   |               |    |   |   |   |   |   |
| Loss from continuing operations                              |   |               | (3,695  | ) |   |   | (4,513 | ) |
| Loss from discontinued operations, net of taxes              |   |               | (1,302  | ) |   |   | (507 | ) |
|                                                         |   |               |    |   |   |   |   |   |
| Net loss                                                     |   | $                  | (4,997  | ) |   | $ | (5,020 | ) |
|                                                         |   |               |    |   |   |   |   |   |
| Basic loss per share:                                        |   |               |    |   |   |   |   |   |
| Loss from continuing operations                              |   | $                  | (0.67   | ) |   | $ | (0.81 | ) |
| Loss from discontinued operations, net of taxes              |   |               | (0.23   | ) |   |   | (0.09 | ) |
|                                                         |   |               |    |   |   |   |   |   |
|    Net loss                                   |   | $                  | (0.90   | ) |   | $ | (0.90 | ) |
|                                                         |   |               |    |   |   |   |   |   |
| Diluted loss per share:                                      |   |               |    |   |   |   |   |   |
| Loss from continuing operations                              |   | $                  | (0.67   | ) |   | $ | (0.81 | ) |
| Loss from discontinued operations, net of taxes              |   |               | (0.23   | ) |   |   | (0.09 | ) |
|                                                         |   |               |    |   |   |   |   |   |
| Net loss                                                     |   | $                  | (0.90   | ) |   | $ | (0.90 | ) |
|                                                         |   |               |    |   |   |   |   |   |
|                                                         |   |               |    |   |   |   |   |   |
| Weighted average number of shares outstanding:               |   |               |    |   |   |   |   |   |
| Basic weighted average number of common shares outstanding   |   |               | 5,554   |   |   |   | 5,553 |   |
|                                                         |   |               |    |   |   |   |   |   |
| Diluted weighted average number of common shares outstanding |   |               | 5,554   |   |   |   | 5,553 |   |

----

|                                           |   |         |      |   |    |   |    |     |   | Additional |           |   |   |                |    |   |   |   |      |   |   |   |    |   | Total  |   |
|------------------------------------------------|--------|--------------|-----------|--------|---------|--------|---------|----------|--------|------------|----------------|--------|--------|---------------------|---------|--------|--------|--------|-----------|--------|--------|--------|---------|--------|--------|--------|
|                                           |   | Common Stock |      |   | Paid-In |   |    | Retained |   |       | Treasury Stock |   |   | Stockholders’ |    |
|                                           |   | Shares       |      |   | Amount  |   |    | Capital  |   |       |  Earnings |   |   | Shares              |    |   | Amount |   |      | Equity |   |
| (In thousands, except shares)                  |   |         |      |   |    |   |    |     |   |       |           |   |   |                |    |   |   |   |      |   |   |   |    |   |   |   |   |   |
| Balance at December 31, 2010                   |   |         | 8,243,784 |   |    | $      | 824     |     |   | $          | 30,098         |   |   | $                   | 32,553  |   |   |   | 1,914,549 |   |   | $      | (14,073 | )      |   | $      | 49,402 |   |
|    Net loss                     |   |         | —   |   |    |   | — |     |   |       | —        |   |   |                | (4,997  | )      |   |   | —   |   |   |   | — |   |   |   | (4,997 | ) |
|    Restricted stock forfeitures |   |         | —   |   |    |   | — |     |   |       | 698            |   |   |                | — |   |   |   | 95,000    |   |   |   | (698    | )      |   |   | — |   |
|    Stock based compensation     |   |         | —   |   |    |   | — |     |   |       | 70             |   |   |                | — |   |   |   | —   |   |   |   | — |   |   |   | 70 |   |
|    Purchase of treasury shares  |   |         | —   |   |    |   | — |     |   |       | —        |   |   |                | — |   |   |   | 2,881     |   |   |   | (9      | )      |   |   | (9 | ) |
|                                           |   |         |      |   |    |   |    |     |   |       |           |   |   |                |    |   |   |   |      |   |   |   |    |   |   |   |   |   |
| Balance at April 2, 2011                       |   |         | 8,243,784 |   |    | $      | 824     |     |   | $          | 30,866         |   |   | $                   | 27,556  |   |   |   | 2,012,430 |   |   | $      | (14,780 | )      |   | $      | 44,466 |   |

----

|                                                                                                                                                |   | Three Months Ended |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|
| (In thousands)                                                                                                                                      |   | April 2, 2011      |    |   | April 3, 2010 |   |
| Cash flows from operating activities:                                                                                                               |   |               |    |   |   |   |
| Net loss                                                                                                                                            |   | $                  | (4,997  | ) |   | $ | (5,020 | ) |
| Less:  Loss from discontinued operations, net of taxes                                                                                    |   |               | (1,302  | ) |   |   | (507 | ) |
|                                                                                                                                                |   |               |    |   |   |   |   |   |
| Loss from continuing operations                                                                                                                     |   |               | (3,695  | ) |   |   | (4,513 | ) |
| Adjustments to reconcile loss from continuing operations to net cash provided by (used in) operating activities:                                    |   |               |    |   |   |   |   |   |
| Depreciation and amortization                                                                                                                       |   |               | 512     |   |   |   | 618 |   |
| Stock based compensation                                                                                                                            |   |               | 70      |   |   |   | 147 |   |
| Changes in operating assets and liabilities:                                                                                                        |   |               |    |   |   |   |   |   |
| Receivables, net                                                                                                                                    |   |               | 12,266  |   |   |   | 14,124 |   |
| Inventories, net                                                                                                                                    |   |               | (540    | ) |   |   | 688 |   |
| Other assets                                                                                                                                        |   |               | (1,714  | ) |   |   | (758 | ) |
| Liabilities                                                                                                                                         |   |               | (1,143  | ) |   |   | (1,039 | ) |
|                                                                                                                                                |   |               |    |   |   |   |   |   |
| Net cash provided by (used in) continuing operating activities                                                                                      |   |               | 5,756   |   |   |   | 9,267 |   |
| Net cash provided by (used in) discontinued operations                                                                                              |   |               | (3,837  | ) |   |   | (2,053 | ) |
|                                                                                                                                                |   |               |    |   |   |   |   |   |
|                 Net cash provided by (used in) operating activities |   |               | 1,919   |   |   |   | 7,214 |   |
| Cash flows from investing activities:                                                                                                               |   |               |    |   |   |   |   |   |
| Capital expenditures                                                                                                                                |   |               | (86     | ) |   |   | (38 | ) |
|                                                                                                                                                |   |               |    |   |   |   |   |   |
| Net cash provided by (used in) continuing investing activities                                                                                      |   |               | (86     | ) |   |   | (38 | ) |
| Net cash provided by (used in) discontinued operations                                                                                              |   |               | — |   |   |   | — |   |
|                                                                                                                                                |   |               |    |   |   |   |   |   |
|                 Net cash provided by (used in) investing activities |   |               | (86     | ) |   |   | (38 | ) |
| Cash flows from financing activities:                                                                                                               |   |               |    |   |   |   |   |   |
| Decrease in cash restricted for the collateralization of letters of credit                                                                          |   |               | 912     |   |   |   | — |   |
| Proceeds from line of credit                                                                                                                        |   |               | 1,266   |   |   |   | — |   |
| Repayment of line of credit                                                                                                                         |   |               | (1,230  | ) |   |   | — |   |
| Purchase of treasury stock                                                                                                                          |   |               | (9      | ) |   |   | (5 | ) |
| Repayment of long-term debt                                                                                                                         |   |               | (10     | ) |   |   | (12 | ) |
|                                                                                                                                                |   |               |    |   |   |   |   |   |
| Net cash provided by (used in) financing activities                                                                                                 |   |               | 929     |   |   |   | (17 | ) |
|                                                                                                                                                |   |               |    |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                                                                |   |               | 2,762   |   |   |   | 7,159 |   |
| Cash and cash equivalents at beginning of period                                                                                                    |   |               | 33,720  |   |   |   | 33,365 |   |
|                                                                                                                                                |   |               |    |   |   |   |   |   |
| Cash and cash equivalents at end of period                                                                                                          |   | $                  | 36,482  |   |   | $ | 40,524 |   |

----

----

| (In thousands)                                                                                             |   | April 2, 2011 |   |   | December 31, 2010 |   |
|------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|-------------------|--------|
| Finished goods                                                                                             |   | $             | 4,231  |   |              | $      | 3,660 |   |
| Raw materials and supplies                                                                                 |   |          | 778    |   |              |   | 802 |   |
|                                                                                                       |   |          |   |   |              |   |   |   |
|    Total cost                                                                               |   |          | 5,009  |   |              |   | 4,462 |   |
|    Less: reserves                                                                           |   |          | (341   | )      |              |   | (334 | ) |
|                                                                                                       |   |          |   |   |              |   |   |   |
|                Inventories, net |   | $             | 4,668  |   |              | $      | 4,128 |   |

| (In thousands, except per share data)   |   | NumeratorIncome (Loss) |    |   | DenominatorShares |   |    | Per ShareAmount |   |
|-----------------------------------------|--------|------------------------|---------|--------|-------------------|--------|---------|----------------------|--------|
| Three months ended April 2, 2011:       |   |                   |    |   |              |   |    |                 |   |
| Basic loss from continuing operations   |   | $                      | (3,695  | )      |              |   | 5,554   |                 |   | $ | (0.67 | ) |
|                                    |   |                   |    |   |              |   |    |                 |   |   |   |   |
| Effect of dilutive securities:          |   |                   |    |   |              |   |    |                 |   |   |   |   |
| Preferred rights                        |   |                   | — |   |              |   | — |                 |   |   | — |   |
| Restricted stock                        |   |                   | — |   |              |   | — |                 |   |   | — |   |
|                                    |   |                   |    |   |              |   |    |                 |   |   |   |   |
| Diluted loss from continuing operations |   | $                      | (3,695  | )      |              |   | 5,554   |                 |   | $ | (0.67 | ) |
|                                    |   |                   |    |   |              |   |    |                 |   |   |   |   |
| Three months ended April 3, 2010:       |   |                   |    |   |              |   |    |                 |   |   |   |   |
| Basic loss from continuing operations   |   | $                      | (4,513  | )      |              |   | 5,553   |                 |   | $ | (0.81 | ) |
|                                    |   |                   |    |   |              |   |    |                 |   |   |   |   |
| Effect of dilutive securities:          |   |                   |    |   |              |   |    |                 |   |   |   |   |
| Preferred rights                        |   |                   | — |   |              |   | — |                 |   |   | — |   |
| Restricted stock                        |   |                   | — |   |              |   | — |                 |   |   | — |   |
|                                    |   |                   |    |   |              |   |    |                 |   |   |   |   |
| Diluted loss from continuing operations |   | $                      | (4,513  | )      |              |   | 5,553   |                 |   | $ | (0.81 | ) |

----

----

| (In thousands)                         |   | April 2, 2011 |   |   | December 31, 2010 |   |
|----------------------------------------|--------|---------------|--------|--------|-------------------|--------|
| Accounts receivable, net               |   | $             | 4,484  |   |              | $      | 2,881 |   |
| Inventories, net                       |   |          | 2,998  |   |              |   | 4,837 |   |
| Other receivables                      |   |          | 932    |   |              |   | 1,438 |   |
| Other current assets                   |   |          | 333    |   |              |   | 372 |   |
| Assets of discontinued operations      |   | $             | 8,747  |   |              | $      | 9,528 |   |
|                                   |   |          |   |   |              |   |   |   |
| Accounts payable                       |   | $             | 1,893  |   |              | $      | 5,328 |   |
| Accrued expenses and other liabilities |   |          | 973    |   |              |   | 854 |   |
| Liabilities of discontinued operations |   | $             | 2,866  |   |              | $      | 6,182 |   |

| (In thousands)                                      |   | April 2, 2011 |    |   | April 3, 2010 |   |
|-----------------------------------------------------|--------|---------------|---------|--------|---------------|--------|
| Net sales                                           |   | $             | 13,322  |   |          | $      | 17,891 |   |
|                                                |   |          |    |   |          |   |   |   |
| Gross profit                                        |   | $             | 2,806   |   |          | $      | 3,984 |   |
|                                                |   |          |    |   |          |   |   |   |
| Loss on discontinued operations before income taxes |   | $             | (1,302  | )      |          | $      | (507 | ) |
| Income tax benefit                                  |   |          | — |   |          |   | — |   |
| Loss from discontinued operations, net of taxes     |   | $             | (1,302  | )      |          | $      | (507 | ) |

----

|                     |   | Three Months Ended |    |
|--------------------------|--------|-------------------------|---------|
|                     |   | April 2, 2011 |    |   | April 3, 2010 |   |
|                     |   | Personnel               |    |   | Other |   |   |   |   |   | Personnel |   |   | Other |   |   |   |   |
| (In thousands)      |   | Reductions              |    |   | Costs |   |   | Total |   |   | Reductions |   |   | Costs |   |   | Total |   |
| Beginning of period      |   | $                       | — |   |   | $ | 447 |   |   | $ | 447 |   |   | $ | 32 |   |   | $ | 1,210 |   |   | $ | 1,242 |   |
| Costs charged to expense |   |                    | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Costs paid or settled    |   |                    | — |   |   |   | (27 | ) |   |   | (27 | ) |   |   | (32 | ) |   |   | (107 | ) |   |   | (139 | ) |
| End of period            |   | $                       | — |   |   | $ | 420 |   |   | $ | 420 |   |   | $ | — |   |   | $ | 1,103 |   |   | $ | 1,103 |   |

----

| ● | A prolonged period of depressed consumer spending; |
|---------|----------------------------------------------------|

| ● | Lack of an established public trading market for our common stock; |
|---------|--------------------------------------------------------------------|

| ● | Decreases in business from or the loss of any one of our key customers; |
|---------|-------------------------------------------------------------------------|

| ● | Financial instability experienced by our customers; |
|---------|-----------------------------------------------------|

| ● | Chargebacks and margin support payments; |
|---------|------------------------------------------|

| ● | Loss of or inability to renew certain licenses; |
|---------|-------------------------------------------------|

| ● | Change in consumer preferences and fashion trends, which could negatively affect acceptance of our products by retailers and consumers; |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ● | Use of foreign suppliers for raw materials and manufacture of our products and the increase of related costs; |
|---------|---------------------------------------------------------------------------------------------------------------|

| ● | Failure of our manufacturers to use acceptable ethical business practices; |
|---------|----------------------------------------------------------------------------|

| ● | Failure to deliver quality products in a timely manner; |
|---------|---------------------------------------------------------|

| ● | Problems with our distribution system and our ability to deliver products; |
|---------|----------------------------------------------------------------------------|

| ● | Labor disruptions at port, our suppliers, manufacturers, or distribution facilities; |
|---------|--------------------------------------------------------------------------------------|

| ● | Failure, inadequacy, interruption, or security lapse of our information technology; |
|---------|-------------------------------------------------------------------------------------|

| ● | Failure to compete successfully in a highly competitive and fragmented industry; |
|---------|----------------------------------------------------------------------------------|

| ● | Challenges integrating any business we have acquired or may acquire; |
|---------|----------------------------------------------------------------------|

| ● | Unanticipated expenses beyond the amount reserved on our balance sheet or unanticipated cash payments related to the ultimate resolution of income and other possible tax liabilities; |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Loss of certain key personnel which could negatively impact our ability to manage our business; |
|---------|-------------------------------------------------------------------------------------------------|

| ● | Our stockholders’ rights plan potentially adversely affects existing stockholders; and |
|---------|----------------------------------------------------------------------------------------------|

| ● | Risks related to the global economic, political and social conditions. |
|---------|------------------------------------------------------------------------|

----

----

|                                  |   | Quarterly Rate/Volume |
|---------------------------------------|--------|-----------------------|
| (Dollars in thousands)                |   | Dollars               |   | Percentage of 2010 |
| Net sales quarter ended April 3, 2010 |   | $                     | 2,559 |   |   100.0% |
| Volume                                |   |                  | (31 | ) |       (1.2%) |
| Average net selling prices            |   | 983                   |   |    38.4% |
| Net sales quarter ended April 2, 2011 |   | $                     | 3,511 |   |   137.2% |

----

----

----

| ISSUER PURCHASES OF EQUITY SECURITIESCOMMON STOCK, $0.10 PAR VALUE |
|--------------------------------------------------------------------|
|                                                               |
| Period                                                             |   | TotalNumber of Shares Purchased |   |   | Average Price Paid per Share |   |   | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs |   |
| January 1, 2011  –  January 29, 2011     |   |   | — |   |   | $ | — |   |   |   | — |   |   |   | 841,489 |   |
| January 30, 2011  – February 26, 2011              |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 841,489 |   |
| February 27, 2011 – April 2, 2011                            |   |   | 2,881 | (1) |   |   | 3.62 |   |   |   | 2,881 | (1) |   |   | 727,936 |   |
| Total                                                              |   |   | 2,881 |   |   | $ | 3.62 |   |   |   | 2,881 |   |   |   | 727,936 |   |

|   | (1) | Represents shares turned in by employees of the Company to cover personal tax obligations on shares of common stock that vested on March 31, 2011. The vested shares were awarded to certain employees under The Hampshire Group, Limited 2009 Stock Incentive Plan, adopted on October 21, 2009 (the “Plan”), which allows employees to satisfy their applicable withholding tax obligations by using shares of common stock that would otherwise be deliverable upon the vesting of the restricted stock. 727,936 shares that have been granted pursuant to the Plan remain subject to vesting conditions and are outstanding as of April 2, 2011. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (a) | The following exhibits are filed as part of this Report: |
|-----|----------------------------------------------------------|

|   | 10.1     Separation and Release Agreement, dated as of May 11, 2011, by and between Hampshire Group, Limited and Howard L. Zwilling |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1    Certification of Principal Executive Officer pursuant to Item 601(b) (31) of Regulation S-K as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2    Certification of Principal Financial Officer pursuant to Item 601(b) (31) of Regulation S-K as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1    Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2    Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|               |   | Hampshire Group, Limited |
|--------------------|--------|--------------------------|
|               |   |                     |   |
| Date: May 12, 2011 |   | By:                      | /s/ Heath L. Golden |
|               |   |                     |   | Heath L. Golden |
|               |   |                     |   | President and Chief Executive Officer |
|               |   |                     |   | (Principal Executive Officer) |
|               |   |                     |   |   |
|               |   |                     |   | /s/ Timothy L. Walsh |
|               |   |                     |   | Timothy L. Walsh |
|               |   |                     |   | Interim Chief Financial Officer(Principal Financial and Accounting Officer) |

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| EXHIBITNUMBER |  DESCRIPTION |
|---------------|-------------------|

|   | 10.1 | Separation and Release Agreement, dated as of May 11, 2011, by and between Hampshire Group, Limited and Howard L. Zwilling |
|--------|------|----------------------------------------------------------------------------------------------------------------------------|

|   | 31.1 | Certification of Principal Executive Officer pursuant to Item 601(b) (31) of Regulation S-K as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Principal Financial Officer pursuant to Item 601(b) (31) of Regulation S-K as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|