------------------------------- OMB APPROVAL ------------------------------- OMB Number: 3235-0060 Expires: April 30, 2009 Estimated average burden Hours per response.......38.0 ------------------------------- 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 16, 2007 MOVIE STAR, INC. (Exact Name of Registrant as Specified in Charter) New York 1-5893 13-5651322 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 1115 Broadway, New York, New York 10010 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (212) 684-3400 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 (see General Instruction A.2. below): [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 4.02. NON-RELIANCE ON PREVIOUSLY ISSUED FINANCIAL STATEMENTS OR A RELATED AUDIT REPORT OR COMPLETED INTERIM REVIEW. (a) In response to comments received from the Securities and Exchange Commission ("SEC") as part of the SEC's regular review of the periodic filings of Movie Star, Inc. ("Company") under the Securities Exchange Act of 1934, the Company's Chief Financial Officer and Audit Committee determined, in consultation with its independent accountants, that it was appropriate to restate the Company's Consolidated Statement of Cash Flows for fiscal 2006 to include within Cash Flows from Investing Activities, the cash proceeds of $1,424,000 received from the insurance recovery relating to the Company's building damage caused by Hurricane Katrina. In the Consolidated Statements of Cash Flows that were previously filed with the SEC on September 27, 2006, the amount had been included within Cash Flows from Operating Activities. Accordingly, on January 16, 2007, the Audit Committee concluded that the Company's Consolidated Statement of Cash Flows for the fiscal year ended June 30, 2006 previously filed with the SEC should not be relied upon. The Company has amended its Form 10-K for the fiscal year ended June 30, 2006 to include restated Consolidated Statements of Cash Flows correcting this error. The restatement did not have an effect on the Company's net loss or net loss per share. 2 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. Dated: January 30, 2007 MOVIE STAR, INC. By: /s/ Thomas Rende ----------------------------------- Thomas Rende Chief Financial Officer (Principal Financial and Accounting Officer) 3