http://yoursite.com/templates/genera.../css/style.css

go to your syle.css (line 208??) and look for this

.sub_categories {
padding: 9px 20px 0 0;
color: #654234;

ad change it to this / below, this will white out the back ground and make it disapear and leave the correct gap ( add colour code to suit your background / use a colour picker in tolls if not sure)

.sub_categories {
padding: 9px 20px 0 0;
color: #ffffff;