Operator

Your next question comes from Crystal Kallik with D. A. Davidson.

Crystal Kallik - D. A. Davidson

Good morning Ed, my congratulations as far as the implementation of the merchandize which is very impressive. Ed, when I look at the Talbots only it looks like SG&A was down on a dollar basis about $11 million Q3 last year to this year. I’m just wondering your thoughts as you guys mentioned in a prior pres release about additional supply chain savings you just identified. I’m just trying to get handle on what we should be thinking about on a dollar basis for SG&A for Q4, pure Talbots?

Ed Larsen

Well, let me address that broadly. We have major initiatives in place for our cost structure, we realigned them. We talked about $50 million for ’08 and $100 million for ’09. Our current estimates internally have surpassed that. Much of that is coming at cost of sales through significant IMU improvement and significant markdown improvement with markdown optimization, but we’re really taking a real tough line on our expenses. It’s a $12 million drop here that is apples-to-apples. Some of that is headcounts, some of that is catalogs moving from the third quarter to the fourth quarter, but we expect tight express controls as we go through the rest of the year and 2009. We’re in the middle of our budgeting process; everyone is really fine tuning the pencils to try to get this number down.

Operator

Your next question comes from Roxanne Meyer with UBS.

Roxanne Meyer – UBS

Very good morning and Trudy you have my congratulations on much improving merchandize.

Trudy Sullivan

Thanks Roxanne.

Roxanne Meyer – UBS

Just two questions; one, I was wondering if you could elaborate on your CapEx plan for next year, which are a nice haircut there; just what you’re going to be focusing your spending on and maybe pushing back into the out years and then looking at your balance sheet. It looks like you’ve taken some impairment of store assets and I guess I’m wondering, I’m assuming that’s for the Talbots brand and if you could talk to that and what you’re seeing at the store level there? Thanks.

Ed Larsen

Roxanne, we’re going to be very tight on capital next year. First, we look at our expansion plan, we’re pushing everything out that we can out of 2009 into 2010, but we want to support our premium outlet strategy. We’re going to open 12 premium outlet stores next year. So that’s a lock and we have about eight other Talbots stores that we attributed to; we will keep those; that’s 20 on the Talbots brand and right now we have three Jill stores that we’re committed to, so we would open those. So, that is going to take us for capital and some renovation money, probably somewhere in the low to mid 20s and then we’re looking at the IT study we need to do and other kind of corporate things. So, we will be below $40 million, that’s kind of our goal at this point. Impairment we do have some store impairment from Talbot’s stores that is the $2 million you’ll see on P&L for impairment. That is all Talbots and $2.5 million year-to-date.

Operator

Your next question comes from Todd Slater with Lazard Capital Management.

Jennifer Cook - Lazard Capital Management

Hi, this is actually Jennifer for Todd. Let me add my congratulations. A couple of questions; first of all, I guess could you talk a little bit about the sale of J. Jill; when do you expect that to happen?