Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Christopher Kim - J.P. Morgan.
Christopher Kim - J.P. Morgan
Could you talk a little more about the further wind down of the Crosstown Traders operations? What exactly is involved in the sale here? What assets, headquarters, DC, call center, etc.? And can you talk a little more about the timing of this transitional services agreement?
Eric M. Specter
Again I’ll refer everyone to the release we made Monday evening, but let me give a little more color to the questions you’ve asked. The business was sold, meaning the Missy apparel catalogs as we outlined. There are eight catalogs in total that make up that group. All of the inventory, the trademarks, the customer lists and so on were part of that transaction; substantially all the assets of the business. We continue to retain and run out of Tucson our Lane Bryant Woman catalog as well as our websites, our headquarter to be. They’re run out of the Tucson facility meaning all of our retail websites along with a stand-alone website www.shoetrader.com that we’ve retained as part of this acquisition back in 2005.
As far as the transitional service arrangements as we outlined in the release Monday evening we will retain what we call the infrastructure assets which are part of our whole shared service group, meaning the DCs, the distribution centers which there are two primary ones; one in Wilmington, North Carolina as well as one in Tucson that is connected to the home office. Those facilities will remain with us. They are leased facilities; they’re not owned. We also will be providing IT services through the transition period.
The transitional periods burn off at various time periods over the next 12 months but none of them go beyond a 12-month period. So we will wrap up all of these transitional services that we’ll be providing to Orchard Brands for a period not to exceed a year from closing. So they’ll all be completed the end of next September.
Christopher Kim - J.P. Morgan
Also regarding the Figi’s part of the business, I have in my notes that it generates about $100 million in revs. Can you give us any additional color on operating margin or EBITDA, trailing 12 or historical levels?
Eric M. Specter
Let me just clarify the sales run rate. If you look at an SEC reporting sales number which includes other revenue like shipping and handling, your $100 million is right. If you want to look at just their net sales from selling product, it’s approximately $90 million. So as a run rate of $90 million in sales. Of course again for the benefit of everyone on the call, substantially of its business and all of its profit are in the fourth quarter and more specifically in the period that starts in November and runs about seven or eight weeks through Christmas is where the majority of those sales and all of its earnings are recorded.
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