Note 3 -- Sale of Mimi's Café

Effective January 28, 2013, we entered into a definitive agreement for the sale of our Mimi's Café operating segment to Le Duff.  As a result of the anticipated transaction, we performed a recoverability test and determined that undiscounted cash flows of the long-lived asset group were less than the carrying amount of the long-lived asset group. Our market-approached valuation indicated that the asset group's then-current carrying value exceeded its fair value, which resulted in a pretax noncash impairment charge on assets held for sale in the Mimi's Café segment of $68,409, which is included in the “Impairment of assets held for sale” line in the Consolidated Statements of Operations.

Effective February 15, 2013, we completed the sale of Mimi's Café to Le Duff.  The purchase price of the transaction was $50,000, consisting of $20,000 in cash and a promissory note for $30,000, subject to customary purchase price allocations and adjustments. The note has an annual interest rate of 1.5% and a term of seven years. The interest and note are payable in full at maturity. We will continue to provide transitional services to Mimi's Café for a period of up to one year.  We realized a loss on the sale of $57,743.  Our consolidated results of operations include the Mimi's Café results of operations through the date of sale, February 15, 2013.

The following table presents the financial classification of assets and liabilities of Mimi's Café as of February 15, 2013, the date of sale, and the assets and liabilities that are reflected in the Consolidated Balance Sheets as of April 27, 2012: