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<TITLE>Filed by Bowne Pure Compliance</TITLE>
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<P style="font-size: 14pt" align="center"><B>UNITED STATES<BR>
SECURITIES AND
EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P style="font-size: 18pt" align="center"><B>FORM 8-K</B>

<P style="font-size: 12pt" align="center"><B>CURRENT REPORT<BR>
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P style="font-size: 10pt" align="center"><B>Date of Report (Date of earliest
event reported): January 15, 2009 </B>

<P style="font-size: 24pt" align="center"><B>A.C. Moore Arts &amp; Crafts,
Inc.<BR>
</B><FONT style="font-size: 10pt">(Exact name of registrant as
specified in its charter) </FONT>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="100%" border="0">

 <TR>
  <TD width="32%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="33%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="32%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>Pennsylvania</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>000-23157</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>22-3527763</B></TD>
 </TR>
 <TR valign="top">
  <TD>(State or other Jurisdiction of Incorporation)</TD>
  <TD>&nbsp;</TD>
  <TD>(Commission File Number)</TD>
  <TD>&nbsp;</TD>
  <TD>(IRS Employer Identification No.)</TD>
 </TR>

</TABLE>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="100%" border="0">

 <TR>
  <TD width="49%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="49%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>130 A.C. Moore Drive, Berlin,
NJ<BR>
</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>08009</B></TD>
 </TR>
 <TR valign="top">
  <TD>(Address of Principal Executive Offices)</TD>
  <TD>&nbsp;</TD>
  <TD>(Zip Code)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="center">Registrant&#8217;s telephone number,
including area code: <B>(856) 768-4930</B>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="30%" border="0">

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  <TD width="100%">&nbsp;</TD>
 </TR>
 <TR>
  <TD style="border-bottom: #000000 1px solid" nowrap><B>Not
Applicable<BR>
</B></TD>
 </TR>
 <TR>
  <TD nowrap>(Former name or former address if changed since last report.)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="left">Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:

<P style="font-size: 10pt" align="left"><FONT face="Wingdings">o</FONT> Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)<BR>
<BR>
<FONT face="Wingdings">o</FONT> Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>



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style="margin-top: 10pt; font-size: 1pt; width: 100%; border-bottom: black 1pt solid">&nbsp;</DIV>
<DIV
style="font-size: 1pt; width: 100%; border-bottom: black 2pt solid">&nbsp;</DIV>
</DIV>

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">1
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;1.01. Entry into a Material Definitive Agreement.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">On January&nbsp;15, 2009, A.C. Moore Arts &#038; Crafts, Inc. (the &#147;Company&#148;), and certain of its
subsidiaries entered into a Credit Agreement (the &#147;Credit
Agreement&#148;), with Wells Fargo Retail Finance, LLC (&#147;the Lender&#148;). The Credit Agreement, which
expires on January&nbsp;15, 2012, is an asset-based senior secured revolving credit facility in an
aggregate principal amount of up to $60.0&nbsp;million, with a $15.0&nbsp;million sub-limit for letters of
credit.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Interest is calculated at either LIBOR or the Lender&#146;s base rate, subject to certain minimums,
plus between 1.75 and 2.50&nbsp;percent, which is dependent upon the level of excess availability as
defined in the Credit Agreement. In addition the Company will pay an annual fee of between 0.25
and 0.50&nbsp;percent on the amount of unused availability, which is also dependent of the level of
excess availability. At closing, the Company had paid or incurred approximately $700,000 in
deferred financing costs which will be amortized over the term of the Credit Agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Credit Agreement contains customary covenants which, among other things, restrict the
Company&#146;s ability to incur additional indebtedness or guaranty obligations, create liens or other
encumbrances, pay dividends, redeem or issue certain equity securities or change the nature of the
business. In addition, there are limitations on the type of investments, acquisitions, or
dispositions the Company can make. The Company is also required to maintain greater than $90.0
million in book value of inventory and have excess availability of more than 10% of the borrowing
base or $6.0&nbsp;million, whichever is less.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The Credit Agreement defines various events of default which include failure to pay amounts
when due, cross-default provisions, material liens or judgments, insolvency, bankruptcy or a change
of control. Upon the occurrence of an event of default the Lender may take actions that include
increasing the interest rate on outstanding obligations, discontinue making advances and
accelerating the Company&#146;s obligations.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">On January&nbsp;15, 2009, the Company borrowed $19.0&nbsp;million under the Credit Agreement and used
these proceeds as well as approximately $13.2&nbsp;million of its own funds to repay indebtedness
totaling $31.7&nbsp;million under the Amended and Restated Loan Agreement between the Company and
Wachovia Bank, NA, (the &#147;Wachovia Credit Agreement&#148;). This payment included $18.9&nbsp;million of
principal and interest to satisfy mortgages that were held on the Company&#146;s corporate office and
distribution center, $2.8&nbsp;million to terminate an interest rate swap relating to these mortgages
and $10.0&nbsp;million of principal and interest to repay an advance under an existing line of credit.
In addition, the Company obtained a letter of credit in the amount of $6.9&nbsp;million to provide
credit support for letters of credit outstanding under the Wachovia Credit Agreement. The interest
rate on the $19.0&nbsp;million borrowed was based on 30&nbsp;day LIBOR at a rate of 0.33% plus 2.00%.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In connection with the Credit Agreement, on January&nbsp;15, 2009, the Company and certain of its
subsidiaries (collectively the &#147;Guarantors&#148;) entered into a Security Agreement (the &#147;Security
Agreement&#148;), with Wells Fargo, as collateral agent, and executed a Guaranty (the &#147;Guaranty&#148;), in
favor of Wells Fargo. Subject to certain limited exceptions, the Guarantors granted Wells Fargo,
as the collateral agent, a senior security interest in their respective personal property (the
&#147;Collateral&#148;) under the Security Agreement. In case of an event of default under the Credit
Agreement, pursuant to the Security Agreement, Wells Fargo has the right to sell or otherwise
dispose of any or all of the Collateral.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">This summary is not intended to be complete and is qualified in its entirety by reference to
the Credit Agreement, the Security Agreement and the Guaranty, which are incorporated by reference
herein and copies of which are attached to this Current Report on Form 8-K (the &#147;Report&#148;) as
Exhibits 10.1, 10.2 and 10.3, respectively.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of a Registrant.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As described in Item&nbsp;1.01 of this Report, on January&nbsp;15, 2009, under the Credit Agreement, the
Borrower obtained an initial extension of credit in the aggregate principal amount of $19.0&nbsp;million
and an initial Letter of Credit in the approximate amount of $6.9&nbsp;million in order to provide
credit support for certain letters of credit issued under the Wachovia Credit Agreement. The
disclosures set forth in such Item&nbsp;1.01 are incorporated by reference into this Item&nbsp;2.03.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Exhibits</TD>
</TR>

</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">The following exhibits are filed herewith.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Credit Agreement, dated as of January&nbsp;15, 2009, among
A.C. Moore Incorporated, as the Lead Borrower, the
Borrowers now or hereafter party thereto, the
Guarantors now or hereafter party thereto, each lender
from time to time party thereto, and Wells Fargo Retail
Finance, LLC, as Administrative Agent, Collateral Agent
and Swing Line Lender.</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Security Agreement, dated as of January&nbsp;15, 2009, by
and among A.C. Moore Incorporated, A.C. Moore Arts &#038;
Crafts, Inc., Moorestown Finance, Inc., Blackwood
Assets, Inc., and Wells Fargo Retail Finance, LLC, as
collateral agent.</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Guaranty, dated as of January&nbsp;15, 2009, by A.C. Moore
Arts &#038; Crafts, Inc., Moorestown Finance, Inc., and
Blackwood Assets, Inc. in favor of Wells Fargo Retail
Finance, LLC, as administrative agent and collateral
agent, and the Credit Parties.</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SIGNATURE</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>A.C. MOORE ARTS &#038; CRAFTS, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date:  January 22, 2009&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Michael Zawoysky
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Michael Zawoysky&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>EXHIBIT INDEX</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Credit Agreement, dated as of January&nbsp;15, 2009, among
A.C. Moore Incorporated, as the Lead Borrower, the
Borrowers now or hereafter party thereto, the
Guarantors now or hereafter party thereto, each lender
from time to time party thereto, and Wells Fargo Retail
Finance, LLC, as Administrative Agent, Collateral Agent
and Swing Line Lender.</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Security Agreement, dated as of January&nbsp;15, 2009, by
and among A.C. Moore Incorporated, A.C. Moore Arts &#038;
Crafts, Inc., Moorestown Finance, Inc., Blackwood
Assets, Inc., and Wells Fargo Retail Finance, LLC, as
collateral agent.</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Guaranty, dated as of January&nbsp;15, 2009, by A.C. Moore
Arts &#038; Crafts, Inc., Moorestown Finance, Inc., and
Blackwood Assets, Inc. in favor of Wells Fargo Retail
Finance, LLC, as administrative agent and collateral
agent, and the Credit Parties.</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>




</BODY>
</HTML>
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Filed by Bowne Pure Compliance
UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest
event reported): January 15, 2009
A.C. Moore Arts & Crafts,
Inc.
(Exact name of registrant as
specified in its charter)
Pennsylvania
000-23157
22-3527763
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
130 A.C. Moore Drive, Berlin,
NJ
08009
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number,
including area code:
(856) 768-4930
Not
Applicable
(Former name or former address if changed since last report.)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01. Entry into a Material Definitive Agreement.
On January 15, 2009, A.C. Moore Arts & Crafts, Inc. (the "Company"), and certain of its
subsidiaries entered into a Credit Agreement (the "Credit
Agreement"), with Wells Fargo Retail Finance, LLC ("the Lender"). The Credit Agreement, which
expires on January 15, 2012, is an asset-based senior secured revolving credit facility in an
aggregate principal amount of up to $60.0 million, with a $15.0 million sub-limit for letters of
credit.
Interest is calculated at either LIBOR or the Lender's base rate, subject to certain minimums,
plus between 1.75 and 2.50 percent, which is dependent upon the level of excess availability as
defined in the Credit Agreement. In addition the Company will pay an annual fee of between 0.25
and 0.50 percent on the amount of unused availability, which is also dependent of the level of
excess availability. At closing, the Company had paid or incurred approximately $700,000 in
deferred financing costs which will be amortized over the term of the Credit Agreement.
The Credit Agreement contains customary covenants which, among other things, restrict the
Company's ability to incur additional indebtedness or guaranty obligations, create liens or other
encumbrances, pay dividends, redeem or issue certain equity securities or change the nature of the
business. In addition, there are limitations on the type of investments, acquisitions, or
dispositions the Company can make. The Company is also required to maintain greater than $90.0
million in book value of inventory and have excess availability of more than 10% of the borrowing
base or $6.0 million, whichever is less.
The Credit Agreement defines various events of default which include failure to pay amounts
when due, cross-default provisions, material liens or judgments, insolvency, bankruptcy or a change
of control. Upon the occurrence of an event of default the Lender may take actions that include
increasing the interest rate on outstanding obligations, discontinue making advances and
accelerating the Company's obligations.
On January 15, 2009, the Company borrowed $19.0 million under the Credit Agreement and used
these proceeds as well as approximately $13.2 million of its own funds to repay indebtedness
totaling $31.7 million under the Amended and Restated Loan Agreement between the Company and
Wachovia Bank, NA, (the "Wachovia Credit Agreement"). This payment included $18.9 million of
principal and interest to satisfy mortgages that were held on the Company's corporate office and
distribution center, $2.8 million to terminate an interest rate swap relating to these mortgages
and $10.0 million of principal and interest to repay an advance under an existing line of credit.
In addition, the Company obtained a letter of credit in the amount of $6.9 million to provide
credit support for letters of credit outstanding under the Wachovia Credit Agreement. The interest
rate on the $19.0 million borrowed was based on 30 day LIBOR at a rate of 0.33% plus 2.00%.
In connection with the Credit Agreement, on January 15, 2009, the Company and certain of its
subsidiaries (collectively the "Guarantors") entered into a Security Agreement (the "Security
Agreement"), with Wells Fargo, as collateral agent, and executed a Guaranty (the "Guaranty"), in
favor of Wells Fargo. Subject to certain limited exceptions, the Guarantors granted Wells Fargo,
as the collateral agent, a senior security interest in their respective personal property (the
"Collateral") under the Security Agreement. In case of an event of default under the Credit
Agreement, pursuant to the Security Agreement, Wells Fargo has the right to sell or otherwise
dispose of any or all of the Collateral.
This summary is not intended to be complete and is qualified in its entirety by reference to
the Credit Agreement, the Security Agreement and the Guaranty, which are incorporated by reference
herein and copies of which are attached to this Current Report on Form 8-K (the "Report") as
Exhibits 10.1, 10.2 and 10.3, respectively.
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Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of a Registrant.
As described in Item 1.01 of this Report, on January 15, 2009, under the Credit Agreement, the
Borrower obtained an initial extension of credit in the aggregate principal amount of $19.0 million
and an initial Letter of Credit in the approximate amount of $6.9 million in order to provide
credit support for certain letters of credit issued under the Wachovia Credit Agreement. The
disclosures set forth in such Item 1.01 are incorporated by reference into this Item 2.03.
Item 9.01. Financial Statements and Exhibits.
(d)
Exhibits
The following exhibits are filed herewith.
Exhibit No.
Description
10.1
Credit Agreement, dated as of January 15, 2009, among
A.C. Moore Incorporated, as the Lead Borrower, the
Borrowers now or hereafter party thereto, the
Guarantors now or hereafter party thereto, each lender
from time to time party thereto, and Wells Fargo Retail
Finance, LLC, as Administrative Agent, Collateral Agent
and Swing Line Lender.
10.2
Security Agreement, dated as of January 15, 2009, by
and among A.C. Moore Incorporated, A.C. Moore Arts &
Crafts, Inc., Moorestown Finance, Inc., Blackwood
Assets, Inc., and Wells Fargo Retail Finance, LLC, as
collateral agent.
10.3
Guaranty, dated as of January 15, 2009, by A.C. Moore
Arts & Crafts, Inc., Moorestown Finance, Inc., and
Blackwood Assets, Inc. in favor of Wells Fargo Retail
Finance, LLC, as administrative agent and collateral
agent, and the Credit Parties.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
A.C. MOORE ARTS & CRAFTS, INC.
Date:  January 22, 2009
By:
/s/ Michael Zawoysky
Name:
Michael Zawoysky
Title:
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No.
Description
10.1
Credit Agreement, dated as of January 15, 2009, among
A.C. Moore Incorporated, as the Lead Borrower, the
Borrowers now or hereafter party thereto, the
Guarantors now or hereafter party thereto, each lender
from time to time party thereto, and Wells Fargo Retail
Finance, LLC, as Administrative Agent, Collateral Agent
and Swing Line Lender.
10.2
Security Agreement, dated as of January 15, 2009, by
and among A.C. Moore Incorporated, A.C. Moore Arts &
Crafts, Inc., Moorestown Finance, Inc., Blackwood
Assets, Inc., and Wells Fargo Retail Finance, LLC, as
collateral agent.
10.3
Guaranty, dated as of January 15, 2009, by A.C. Moore
Arts & Crafts, Inc., Moorestown Finance, Inc., and
Blackwood Assets, Inc. in favor of Wells Fargo Retail
Finance, LLC, as administrative agent and collateral
agent, and the Credit Parties.
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