This excerpt taken from the TWMC 10-Q filed Dec 7, 2006.
TRANS WORLD ENTERTAINMENT CORPORATION AND SUBSIDIARIES
The Company is subject to legal proceedings and claims that have arisen in the ordinary course of its business and have not been finally adjudicated. Although there can be no assurance as to the ultimate disposition of these matters, it is managements opinion, based upon the information available at this time, that the expected outcome of these matters, individually or in the aggregate, will not have a material adverse effect on the results of operations and financial condition of the Company.
Risks relating to the Companys business and common stock are described in detail in Item 1A of the Companys most recently filed Annual Report on Form 10-K for the year ended January 28, 2006.