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<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
Annual Report pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the fiscal year ended December 31, 1997
Commission File Number 1-1594
A. Full title of the plan and address of the plan, if different from that of
the issuer named below:
CROWLEY'S/STEINBACH
401(K) PLAN
B. Name of issuer of securities held pursuant to the plan and the address of
its principal executive offices:
CROWLEY, MILNER AND COMPANY
2301 West Lafayette Boulevard
Detroit, Michigan 48216
The following financial statements and exhibits are filed as part of this
report:
(a) Financial Statements
Report of Independent Auditors
Statements of Assets Available for Benefits, with Fund Information -
December 31, 1997 and 1996
Statements of Changes in Assets Available for Benefits, with Fund
Information - Years Ended December 31, 1997 and 1996
Notes to Financial Statements
Supplemental Schedules
Item 27a - Schedule of Assets Held for Investment Purposes
Item 27d - Schedule of Reportable Transactions
(b) Exhibits - Consent of Independent Auditors
<PAGE> 2
Audited Financial Statements and Schedules
Crowley's/Steinbach 401(k) Plan
Years ended December 31, 1997 and 1996
with Report of Independent Auditors
<PAGE> 3
Crowley's/Steinbach 401(k) Plan
Audited Financial Statements and Schedules
Years ended December 31, 1997 and 1996
CONTENTS
Report of Independent Auditors....................................... 1
Audited Financial Statements
Statement of Assets Available for Benefits, with Fund
Information........................................................ 3
Statement of Changes in Assets Available for Benefits, with
Fund Information................................................... 5
Notes to Financial Statements........................................ 8
Supplemental Schedules
Item 27a - Schedule of Assets Held for Investment Purposes........... 11
Item 27d - Schedule of Reportable Transactions....................... 12
<PAGE> 4
Report of Independent Auditors
Administrative Committee
Crowley's/Steinbach 401(k) Plan
We have audited the accompanying statements of assets available for benefits of
the Crowley's/Steinbach 401(k) Plan ("the Plan") as of December 31, 1997 and
1996, and the related statements of changes in assets available for benefits for
the years then ended, as listed in the table of contents. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, assets available for plan benefits of the Plan at
December 31, 1997 and December 31, 1996, and the changes in its assets available
for plan benefits for the years then ended, in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes and reportable transactions as of and for the year
ended December 31, 1997, are presented for purposes of complying with the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974, and are not a required part
of the basic financial statements. The fund information in the statements of
assets available for plan benefits and statements of changes in assets available
for benefits is presented for purposes of additional analysis rather than to
present net assets available for benefits and changes in assets available for
benefits of each fund. The supplemental schedules and fund information have been
subjected to the auditing procedures applied in our audits of the financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the financial statements taken as a whole.
1
<PAGE> 5
The information presented in the "Schedules of Assets Held for Investment
Purposes and Reportable Transactions" does not disclose the historical cost of
investments. Disclosure of this information is required by the Department of
Labor's rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974.
/s/ ERNST AND YOUNG LLP
Detroit, Michigan
June 26, 1998
2
<PAGE> 6
Crowley's/Steinbach 401(k) Plan
Statement of Assets Available for Benefits, with Fund Information
December 31, 1997
<TABLE>
<CAPTION>
FUND INFORMATION
------------------------------------------------------------------------------------------------------
MFS
GOVERNMENT MASSACHUSETTS VANGUARD
MFS MFS MONEY LIMITED MFS INVESTORS MFS INDEX TEMPLETON
FIXED MARKET MATURITY BOND TRUST RESEARCH TRUST-500 FOREIGN CROWLEY
FUND FUND FUND FUND FUND FUND FUND FUND STOCK
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value
(Note 1)
Mutual Funds $39,415 $508,554 $491,391 $665,141 $1,415,776 $1,445,661 $2,829,270 $255,879
Guaranteed Investment
Contract
Company Stock $218,030
Participant loans
------------------------------------------------------------------------------------------------------
Total investments 39,415 508,554 491,391 665,141 1,415,776 1,445,661 2,829,270 255,879 218,030
Receivables:
Participants'
contributions 15,458 15,144 4,518 9,994 23,244 15,664 21,220 8,369 2,612
Employer's contribution 13,357 18,266 3,864 5,900 13,765 9,209 9,209 4,321 2,030
------------------------------------------------------------------------------------------------------
Total Receivables 28,815 33,410 8,382 15,894 37,009 24,873 30,429 12,690 4,642
------------------------------------------------------------------------------------------------------
Assets available for
benefits $68,230 $541,964 $499,773 $681,035 $1,452,785 $1,470,534 $2,859,699 $268,569 $222,672
======================================================================================================
<CAPTION>
FUND INFORMATION
-------------------------------------------
CROWLEY STEINBACH DEFINED
FROZEN FROZEN BENEFIT
G.I.C. G.I.C. G.I.C.
FUND FUND FUND LOANS TOTAL
--------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value
(Note 1)
Mutual Funds $ 7,651,087
Guaranteed Investment
Contract $1,078,224 $3,319,696 $1,518,002 5,915,922
Company Stock 218,030
Participant loans $221,177 221,177
--------------------------------------------------------
Total investments 1,078,224 3,319,696 1,518,002 221,177 14,006,216
Receivables:
Participants'
contributions 116,223
Employer's contribution 79,921
--------------------------------------------------------
Total Receivables 196,144
--------------------------------------------------------
Assets available for
benefits $1,078,224 $3,319,696 $1,518,002 $221,177 $14,202,360
========================================================
</TABLE>
See accompanying notes.
3
<PAGE> 7
Crowley's/Steinbach 401(k) Plan
Statement of Assets Available for Benefits, with Fund Information
December 31, 1996
<TABLE>
<CAPTION>
FUND INFORMATION
-------------------------------------------------------------------------------------------
ROYAL
GOVERNMENT INTERMEDIATE EQUITY EQUITY INTERNATIONAL LOAN/ MACCABEE'S
SECURITIES BOND INCOME GROWTH EQUITY PROCESSING SAFTY + #2
FUND FUND FUND FUND INDEX FUND FUND
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value
(Note 1)
Royal Maccabee's separate
accounts $526,612 $656,764 $1,063,964 $1,225,893 $161,924
Royal Maccabee's Guaranteed
Investment Contract $1,232,335
Company Stock
Participant loans $144,804
-------------------------------------------------------------------------------------------
Total investments 526,612 656,764 1,063,964 1,225,893 161,924 144,804 1,232,335
Receivables:
Participants' contributions 4,276 4,118 6,577 7,831 2,067 8,944
Employer's contribution 17,478 13,651 22,544 25,324 6,774 62,344
-------------------------------------------------------------------------------------------
Total Receivables: 21,754 17,769 29,121 33,155 8,841 71,288
Other
-------------------------------------------------------------------------------------------
Assets available for benefits $548,366 $674,533 $1,093,085 $1,259,048 $170,765 $144,804 $1,303,623
===========================================================================================
<CAPTION>
FUND INFORMATION
---------------------------------------------
G.I.C.
COLLECTIVE S&P MONEY
SAFTY + #1, 500 MARKET CROWLEY
#2 FUND FUND FUND STOCK TOTAL
----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value
(Note 1)
Royal Maccabee's separate
accounts $1,658,799 $624,668 $346,534 $6,265,158
Royal Maccabee's Guaranteed
Investment Contract 1,232,335
Company Stock $231,649 231,649
Participant loans 144,804
----------------------------------------------------------
Total investments 1,658,799 624,668 346,534 231,649 7,873,946
Receivables:
Participants' contributions 4,463 2,567 1,239 42,082
Employer's contribution 15,534 18,180 (19,537) 162,292
----------------------------------------------------------
Total Receivables: 19,997 20,747 (18,298) 204,374
Other 34,485 34,485
----------------------------------------------------------
Assets available for benefits $1,658,799 $644,665 $367,281 $247,836 $8,112,805
==========================================================
</TABLE>
4
<PAGE> 8
Crowley's/Steinbach 401(k) Plan
Statement of Changes in Assets Available for Benefits, with Fund Information
Year ended December 31, 1997
<TABLE>
<CAPTION>
FUND INFORMATION
-----------------------------------------------------------------------------------------------
MFS
MFS GOVERNMENT MASSACHUSETTS VANGUARD
MFS MONEY LIMITED MFS INVESTORS MFS INDEX TEMPLETON
FIXED MARKET MATURITY RESEARCH TRUST RESEARCH TRUST-500 FOREIGN
FUND FUND FUND FUND FUND FUND FUND FUND
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Contributions:
Participants $50,103 $ 51,146 $ 14,544 $ 32,387 $ 73,847 $ 50,340 $ 69,056 $ 26,802
Crowley, Milner & Co. 14,996 19,922 4,284 6,515 16,035 10,692 10,753 4,742
-----------------------------------------------------------------------------------------------
65,099 71,068 18,828 38,902 89,882 61,032 79,809 31,544
Interest and dividend
income 1,092 5,902 7,325 7,173 98,406 63,999 32,895 26,195
-----------------------------------------------------------------------------------------------
66,191 76,970 26,153 46,075 188,288 125,031 112,704 57,739
Deductions:
Participants' accounts
distributed upon
withdrawal
Fees
Other (additions) (2,039) (10,172) (897) (1,539) (2,852) (1,409) (3,257) (1,080)
-----------------------------------------------------------------------------------------------
68,230 87,142 27,050 47,614 191,140 126,440 115,961 58,819
Realized and unrealized
gain on investment (1,156) 3,449 (55,742) (98,891) (910) (50,114)
Transfers 454,822 473,879 629,972 1,018,014 1,031,814 1,159,702 259,864
-----------------------------------------------------------------------------------------------
Net increase (decrease) 68,230 541,964 499,773 681,035 1,153,412 1,059,363 1,274,753 268,569
Assets available for
benefits beginning of
year
Transfers in from Steinbach
401(k) plan 299,373 411,171 1,584,946
-----------------------------------------------------------------------------------------------
Assets available for
benefits
end of year $68,230 $541,964 $499,773 $681,035 $1,452,785 $1,470,534 $2,859,699 $268,569
================================================================================================
<CAPTION>
FUND INFORMATION
-----------------------------------------------------------
CROWLEY STEINBACH DEFINED
FROZEN FROZEN BENEFIT
CROWLEY G.I.C. G.I.C. G.I.C.
STOCK FUND FUND FUND LOAN
-----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Contributions:
Participants $ 27,773
Crowley, Milner & Co. 60,522
-----------------------------------------------------------
88,295
Interest and dividend
income $ 14,553 $ 101,528 $ 31,448
-----------------------------------------------------------
88,295 14,553 101,528 31,448
Deductions:
Participants' accounts
distributed upon
withdrawal 23,570
Fees
Other (additions) 78,641 $ 25,403
-----------------------------------------------------------
(13,916) 14,553 101,528 31,448 (25,403)
Realized and unrealized
gain on investment 3,193
Transfers (144,441) 1,063,671 1,486,554 144,804
-----------------------------------------------------------
Net increase (decrease) (25,164) 1,078,224 101,528 1,518,002 119,401
Assets available for
benefits beginning of
year 247,836
Transfers in from Steinbach
401(k) plan 3,218,168 101,776
-----------------------------------------------------------
Assets available for
benefits
end of year $222,672 $1,078,224 $3,319,696 $1,518,002 $221,177
===========================================================
</TABLE>
5
<PAGE> 9
Crowley's/Steinbach 401(k) Plan
Statement of Changes in Assets Available for Benefits, with Fund Information
(continued)
<TABLE>
<CAPTION>
FUND INFORMATION
----------------------------------------------------------------------------------------------------
G.I.C.
ROYAL COLLECTIVE
GOVERNMENT INTERMEDIATE EQUITY EQUITY INTERNATIONAL LOAN/ MACCABEE'S SAFTY +=1,
SECURITIES BOND INCOME GROWTH EQUITY PROCESSING SAFTY +#2 #2
FUND FUND FUND FUND INDEX FUND FUND FUND
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Contributions:
Participants $ 32,252 $ 29,244 $ 52,150 $ 60,035 $ 16,433 $ 67,595
Crowley, Milner & Co. 4,891 2,978 5,064 6,240 1,650 8,260
-----------------------------------------------------------------------------------------------------
37,143 32,222 57,214 66,275 18,083 75,855
Interest and dividend
income $ 2,950 43,740 $ 100,384
-----------------------------------------------------------------------------------------------------
37,143 32,222 57,214 66,275 18,083 2,950 119,595 100,384
Deductions:
Participants'
accounts
distributed upon
withdrawal 84,029 129,385 192,279 226,534 20,473 27,947 189,848 272,628
Fees 2,350 2,853 4,772 5,585 538 3,301
Other (additions) 1,500 5,463 4,536 5,433 (486) (19,865) 49,509
-----------------------------------------------------------------------------------------------------
(50,736) (105,479) (144,373) (171,277) (2,442) (5,132) (123,063) (172,244)
Realized and unrealized
gain on investment 29,931 35,344 178,963 278,184 19,582
Transfers (527,561) (604,398) (1,127,675) (1,365,955) (187,905) (139,672) (1,180,560) (1,486,555)
-----------------------------------------------------------------------------------------------------
Net increase (decrease) (548,366) (674,533) (1,093,085) (1,259,048) (170,765) (144,804) (1,303,623) (1,658,799)
Assets available for
benefits beginning of
year 548,366 674,533 1,093,085 1,259,048 170,765 144,804 1,303,623 1,658,799
Transfers in from
Steinbach 401(k) plan
-----------------------------------------------------------------------------------------------------
Assets available for
benefits
end of year $ - $ - $ - $ - $ - $ - $ - $ -
=====================================================================================================
<CAPTION>
FUND INFORMATION
------------------------
S&P MONEY
500 MARKET
FUND FUND TOTAL
------------------------------------
<S> <C> <C> <C>
Additions:
Contributions:
Participants $ 35,469 $ 17,296 $ 706,472
Crowley, Milner & Co. 3,856 20,490 201,890
------------------------------------
39,325 37,786 908,362
Interest and dividend
income 13,214 550,804
------------------------------------
39,325 51,000 1,459,166
Deductions:
Participants'
accounts
distributed upon
withdrawal 129,964 47,316 1,338,973
Fees 2,990 1,537 23,926
Other (additions) 1,281 2,945 131,115
------------------------------------
(89,910) (798) (34,848)
Realized and unrealized
gain on investment 167,135 508,968
Transfers (721,890) (336,483)
------------------------------------
Net increase (decrease) (644,665) (367,281) 474,120
Assets available for
benefits beginning of
year 644,665 367,281 8,112,805
Transfers in from
Steinbach 401(k) plan 5,615,435
------------------------------------
Assets available for
benefits
end of year $ - $ - $14,202,360
====================================
</TABLE>
6
<PAGE> 10
Crowley's/Steinbach 401(k) Plan
Statement of Changes in Assets Available for Benefits, with Fund Information
Year ended December 31, 1996
<TABLE>
<CAPTION>
FUND INFORMATION
-------------------------------------------------------------------------------------------
ROYAL
GOVERNMENT INTERMEDIATE EQUITY EQUITY INTERNATIONAL LOAN/ MACCABEE'S
SECURITIES BOND INCOME GROWTH EQUITY PROCESSING SAFTY + #2
FUND FUND FUND FUND INDEX FUND FUND
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions:
Contributions:
Participants $ 53,496 $ 53,300 $ 79,967 $ 85,154 $ 18,232 $ 112,383
Crowley, Milner and
Company 23,372 17,565 28,242 31,415 8,199 49,771
-------------------------------------------------------------------------------------------
76,868 70,865 108,209 116,569 26,431 162,154
Interest and dividend
income $ 10,204 97,845
-------------------------------------------------------------------------------------------
76,868 70,865 108,209 116,569 26,431 10,204 259,999
Deductions:
Participants' accounts
distributed upon
withdrawal 129,366 87,352 205,630 159,512 10,455 1,629 595,840
Fees 3,259 4,229 6,117 6,635 761 8,087
Other (additions) (126) (13,571)
-------------------------------------------------------------------------------------------
132,625 91,581 211,747 166,147 11,216 1,503 590,356
Realized and unrealized gain
on investments 21,520 24,279 138,297 184,666 15,191
Transfers (7,429) (128,009) (92,591) 42,078 27,954 (16,753) 7,379
-------------------------------------------------------------------------------------------
Net increase (decrease) (41,666) (124,446) (57,832) 177,166 58,360 (8,052) (322,978)
Assets available for benefits
beginning of year 590,032 798,979 1,150,917 1,081,882 112,405 152,856 1,626,601
-------------------------------------------------------------------------------------------
Assets available for benefits
end of year $ 548,366 $ 674,533 $1,093,085 $1,259,048 $ 170,765 $ 144,804 $1,303,623
===========================================================================================
<CAPTION>
FUND INFORMATION
-----------------------------------------------
G.I.C.
COLLECTIVE S&P MONEY
SAFTY + #1, 500 MARKET CROWLEY
#2 FUND FUND FUND STOCK TOTAL
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Contributions:
Participants $ 43,606 $ 33,796 $ 18,663 $ 498,597
Crowley, Milner and
Company 18,454 22,960 42,030 242,008
--------------------------------------------------------------
62,060 56,756 60,693 740,605
Interest and dividend
income $ 165,260 788 274,097
--------------------------------------------------------------
165,260 62,060 56,756 61,481 1,014,702
Deductions:
Participants' accounts
distributed upon
withdrawal 404,575 170,115 57,746 11,475 1,833,695
Fees 2,967 2,401 34,456
Other (additions) (867) (14,564)
--------------------------------------------------------------
404,575 173,082 60,147 10,608 1,853,587
Realized and unrealized gain
on investments 120,033 19,892 59,232 583,110
Transfers 137,120 (15,328) 45,579
--------------------------------------------------------------
Net increase (decrease) (239,315) 146,131 893 155,684 (255,775)
Assets available for benefits
beginning of year 1,898,114 498,534 366,108 92,152 8,368,580
--------------------------------------------------------------
Assets available for benefits
end of year $1,658,799 $ 644,665 $ 367,281 $ 247,836 $8,112,805
==============================================================
</TABLE>
See accompanying notes.
7
<PAGE> 11
Crowley's/Steinbach 401(k) Plan
Notes to Financial Statements
December 31, 1997
1. DESCRIPTION OF THE PLAN
Crowley's/Steinbach 401(k) Plan (the Plan) is a voluntary, defined contribution
plan established February 1, 1984 covering all eligible employees of Crowley,
Milner and Company and Steinbach Stores, Inc., its wholly-owned subsidiary (the
Company).
Effective October 1, 1997, the Company's Board of Directors amended and restated
the Plan, previously known as the Crowley, Milner & Company Profit Sharing Plan.
The amendment provided for the merger of another pension plan of the Company
into the Plan. In addition, distributions to Plan participants were suspended
from October 1, 1997 to January 15, 1998. The amended and restated plan also
provided for a change in trustees and available participant investment fund
options.
Information about the Plan agreement and the vesting and benefit provisions is
contained in the Summary Plan Description, copies of which are available from
the human resource office of the Company.
Eligible employees may make annual contributions to the Plan up to the lesser
of 20% of compensation or the maximum amount as allowed by Internal Revenue
Code of 1986 (the Code).
The Company contributes to employee accounts as stipulated in the Plan.
The Company has the right to amend or terminate the Plan at any time. In the
event the Plan is terminated, all participants' accounts become fully vested and
nonforfeitable.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The fair value of the participation units owned by the Plan in the Royal
Maccabees Life Insurance Company (RMLK) separate accounts represent their net
asset values on the last business day of the Plan year. The fair value of the
Company's stock is valued at the last reported sales price on the last business
day of the Plan year.
8
<PAGE> 12
Crowley's/Steinbach 401(k) Plan
Notes to Financial Statements (continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The Royal Maccabees Life Insurance Company guaranteed investment contract is
invested in the Bankers Trust Company - Pyramid Open End GIC Fund and Treasury
Yield Plus (SAFTY Funds) at a guaranteed effective annual rate of interest for a
specified period of time.
The investments held in the MFS family of funds are valued at the net asset
values on the last business day of the Plan year.
Administrative expenses incurred are borne by the Company, and fees associated
with the funds are borne by the participants.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements.
Estimates also affect the reported amounts of additions and deductions during
the reporting period. Actual results could differ from those estimates.
3. TAX STATUS
The Internal Revenue Service (IRS) had ruled favorably on the Plan in its form
prior to its 1997 restatement. The IRS has not yet ruled on the Plan as
restated. The Plan sponsor has requested a letter from the IRS that the Plan, as
restated, qualifies under section 401(a) of the Code and the related trust
therefore, is not subject to tax under present income tax laws. The Plan is
required to operate in conformity with the Code to maintain its qualification.
The Company is not aware of any course of action or series of events that have
occurred that might adversely affect the Plan's qualified status.
9
<PAGE> 13
Crowley's/Steinbach 401(k) Plan
Notes to Financial Statements (continued)
4. YEAR 2000 (UNAUDITED)
The Company has a plan to modify its internal information technology to be ready
for the year 2000 and has begun converting critical data processing systems.
The Company currently expects the project to be substantially complete by
August 1998. The Company does not expect this project to have a significant
effect on the Plan's operations. The project also includes determining whether
third party service providers have reasonable plans in place to become year
2000 compliant.
5. COMMITMENTS AND CONTINGENCIES
As described in Note 1, Description of the Plan, the assets of the Savings and
Profit Sharing Retirement Plan of Steinbach Stores, Inc. were merged into the
Plan during 1997. The former trustee and recordkeeper has alleged that an error
occurred in the settlement process and has requested that the Plan return
approximately $180,000. In response, Plan management has requested that the
former trustee and recordkeeper provide a detailed reconciliation of the alleged
error. At this time, the former trustee and recordkeeper has not provided any
detail supporting the allegation, and as a result, Plan management has made no
accrual in the Plan financial statements.
10
<PAGE> 14
Crowley's/Steinbach 401(k) Plan
EIN 38-0454910
Plan # 002
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1997
<TABLE>
<CAPTION>
DESCRIPTION OF INVESTMENT INCLUDING
IDENTITY OF ISSUE, BORROWER, MATURITY DATE, RATE OF INTEREST, CURRENT
LESSOR OR SIMILAR PARTY COLLATERAL, PAR OR MATURITY VALUE COST VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MFS Fixed Fund Fixed Fund Account--39,414 units ** $ 39,415
MFS Money Market Fund Money Market Fund Account--508,554 units ** 508,554
MFS Government Limited Maturity Fund Government Limited Maturity Fund Account--58,499 units ** 491,391
MFS Bond Fund Bond Fund Account--48,836 units ** 665,141
Massachusetts Investors Trust Fund Investors Trust Fund Account--80,766 units ** 1,445,776
MFS Research Fund Research Fund Account--67,903 units ** 1,445,661
Vanguard Index Trust--500 Fund Trust-500 Fund Account--31,412 units ** 2,829,270
Templeton Foreign Fund Foreign Fund Account--25,717 units ** 255,879
Crowley Frozen GIC Fund Frozen GIC Account--107,822 units ** 1,078,224
Steinbach Frozen GIC Fund Frozen GIC Account--331,970 units ** 3,319,696
Defined Benefit - GIC Fund Defined Benefit GIC Fund Account--151,800 units ** 1,518,002
*Crowley, Milner and Company Crowley Milner and Company Stock--26,739 shares ** 218,030
Participant Loans Various Loans (rate of interest 8%-9%) - 221,177
</TABLE>
There were no investment assets reportable as acquired and disposed of during
the year. The cost to acquire participant loans was zero. In addition, there
were no proceeds of disposition related to participant loans.
*Party-in-interest.
**Trustee does not track cost.
11
<PAGE> 15
Crowley's/Steinbach 401(k) Plan
EIN 38-0454910
Plan # 002
Item 27d - Schedule of Reportable Transactions
Year ended December 31, 1997
<TABLE>
<CAPTION>
DESCRIPTION OF ASSET (INCLUDING
INTEREST RATE AND MATURITY IN PURCHASE SELLING LEASE
IDENTITY OF PARTY INVOLVED CASE OF A LOAN) PRICE PRICE RENTAL
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category i) A single transaction within
the plan year in excess of 5% of the
current value of the plan assets:
Royal Maccabees Life Insurance
Company Intermediate Bond Fund
36,547 shares sold $ 629,972
Government Securities Fund
31,579 shares sold 473,879
S&P 500 Fund
13,009 shares sold 1,159,702
Equity Income Fund
17,093 of shares sold 1,018,014
Equity Growth Fund
17,755 of shares sold 1,031,814
Money Market Fund
15,045 shares sold 438,024
Safty Fund 783,048
<CAPTION>
CURRENT
EXPENSE VALUE OF
DESCRIPTION OF ASSET (INCLUDING INCURRED COST ASSET ON NET
INTEREST RATE AND MATURITY IN WITH OF TRANSACTION GAIN
IDENTITY OF PARTY INVOLVED CASE OF A LOAN) TRANSACTION ASSET DATE (LOSS)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Category i) A single transaction within
the plan year in excess of 5% of the
current value of the plan assets:
Royal Maccabees Life Insurance
Company Intermediate Bond Fund
36,547 shares sold $ 629,972 *
Government Securities Fund
31,579 shares sold 473,879 *
S&P 500 Fund
13,009 shares sold 1,159,702 *
Equity Income Fund
17,093 of shares sold 1,018,014 *
Equity Growth Fund
17,755 of shares sold 1,031,814 *
Money Market Fund
15,045 shares sold 438,024 *
Safty Fund 783,048 *
</TABLE>
12
<PAGE> 16
Crowley's/Steinbach 401(k) Plan
EIN 38-0454910
Plan #002
Item 27d - Schedule of Reportable Transactions (continued)
<TABLE>
<CAPTION>
DESCRIPTION OF ASSET (INCLUDING
INTEREST RATE AND MATURITY IN PURCHASE SELLING LEASE
IDENTITY OF PARTY INVOLVED CASE OF A LOAN) PRICE PRICE RENTAL
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category i) A single transaction within
the plan year in excess of 5% of the
current value of the plan
assets--continued:
MFS Money Market Fund MFS Money Market Fund
2,619,426 shares purchased
at $1/share $2,619,426
MFS Government Limited MFS Government Limited
Maturity Fund Maturity Fund
56,280 shares purchased
at $8.42/share 473,879
MFS Bond Fund MFS Bond Fund
46,492 shares purchased
at $13.55/share 629,972
Massachusetts Investors Trust Massachusetts Investors Trust
55,599 shares purchased
at $18.31/share 1,018,014
MFS Research Fund MFS Research Fund
45,116 shares purchased
at $22.87 share 1,031,814
Vanguard Index Trust Vanguard Index Trust
12,900 shares purchased
at $89.90/share 1,159,702
Vanguard Index Trust
17,548 shares purchased
at $90.32/share 1,584,946
<CAPTION>
CURRENT
EXPENSE VALUE OF
DESCRIPTION OF ASSET (INCLUDING INCURRED COST ASSET ON NET
INTEREST RATE AND MATURITY IN WITH OF TRANSACTION GAIN
IDENTITY OF PARTY INVOLVED CASE OF A LOAN) TRANSACTION ASSET DATE (LOSS)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Category i) A single transaction within
the plan year in excess of 5% of the
current value of the plan
assets--continued:
MFS Money Market Fund MFS Money Market Fund
2,619,426 shares purchased
at $1/share $2,619,426 $2,619,426
MFS Government Limited MFS Government Limited
Maturity Fund Maturity Fund
56,280 shares purchased
at $8.42/share 473,879 473,879
MFS Bond Fund MFS Bond Fund
46,492 shares purchased
at $13.55/share 629,972 629,972
Massachusetts Investors Trust Massachusetts Investors Trust
55,599 shares purchased
at $18.31/share 1,018,014 1,018,014
MFS Research Fund MFS Research Fund
45,116 shares purchased
at $22.87 share 1,031,814 1,031,814
Vanguard Index Trust Vanguard Index Trust
12,900 shares purchased
at $89.90/share 1,159,702 1,159,702
Vanguard Index Trust
17,548 shares purchased
at $90.32/share 1,584,946 1,584,946
</TABLE>
13
<PAGE> 17
Crowley's/Steinbach 401(k) Plan
EIN 38-0454910
Plan #002
Item 27d - Schedule of Reportable Transactions (continued)
<TABLE>
<CAPTION>
DESCRIPTION OF ASSET (INCLUDING
INTEREST RATE AND MATURITY IN PURCHASE SELLING LEASE
IDENTITY OF PARTY INVOLVED CASE OF A LOAN) PRICE PRICE RENTAL
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category i) A single transaction within
the plan year in excess of 5% of the
current value of the plan
assets--continued:
MFS Money Market Fund MFS Money Market Fund
1,584,946 shares sold
at $1.00/share $1,584,946
MFS Money Market Fund MFS Money Market Fund
783,048 shares sold
at $1.00/share 783,048
MFS Fixed Fund MFS Fixed Fund
783,048 shares purchased
at $1.00/share $ 783,048
Category iii) A series of transactions
involving securities of the same issue
which, when aggregated, involve an
amount in excess of 5% of the current
value of plan assets:
Royal Maccabees Life Insurance
Company Intermediate Bond Fund
41 purchases 135,995
62 sales 828,088
Government Securities Fund
39 purchases 95,820
62 sales 652,333
<CAPTION>
CURRENT
EXPENSE VALUE OF
DESCRIPTION OF ASSET (INCLUDING INCURRED COST ASSET ON NET
INTEREST RATE AND MATURITY IN WITH OF TRANSACTION GAIN
IDENTITY OF PARTY INVOLVED CASE OF A LOAN) TRANSACTION ASSET DATE (LOSS)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Category i) A single transaction within
the plan year in excess of 5% of the
current value of the plan
assets--continued:
MFS Money Market Fund MFS Money Market Fund
1,584,946 shares sold
at $1.00/share $1,584,946 *
MFS Money Market Fund MFS Money Market Fund
783,048 shares sold
at $1.00/share 783,048 *
MFS Fixed Fund MFS Fixed Fund
783,048 shares purchased
at $1.00/share $ 783,048 783,048
Category iii) A series of transactions
involving securities of the same issue
which, when aggregated, involve an
amount in excess of 5% of the current
value of plan assets:
Royal Maccabees Life Insurance
Company Intermediate Bond Fund
41 purchases 135,995 135,995
62 sales 828,088 *
Government Securities Fund
39 purchases 95,820 95,820
62 sales 652,333 *
</TABLE>
14
<PAGE> 18
Crowley's/Steinbach 401(k) Plan
EIN 38-0454910
Plan #002
Item 27d - Schedule of Reportable Transactions (continued)
<TABLE>
<CAPTION>
DESCRIPTION OF ASSET (INCLUDING
INTEREST RATE AND MATURITY IN PURCHASE SELLING LEASE
IDENTITY OF PARTY INVOLVED CASE OF A LOAN) PRICE PRICE RENTAL
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category iii) A series of transactions
involving securities of the same issue
which, when aggregated, involve an
amount in excess of 5% of the current
value of plan assets--continued:
Royal Maccabees Life Insurance
Company--continued S&P 500 Fund
37 purchases $ 574,360
88 sales $1,366,152
Equity Income Fund
44 purchases 212,973
104 sales 1,455,857
Equity Growth Fund
42 purchases 152,439
102 sales 1,656,467
Money Market Fund
40 purchases 176,019
105 sales 535,478
SAFTY+ #2
82 sales 82,528
<CAPTION>
CURRENT
EXPENSE VALUE OF
DESCRIPTION OF ASSET (INCLUDING INCURRED COST ASSET ON NET
INTEREST RATE AND MATURITY IN WITH OF TRANSACTION GAIN
IDENTITY OF PARTY INVOLVED CASE OF A LOAN) TRANSACTION ASSET DATE (LOSS)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Category iii) A series of transactions
involving securities of the same issue
which, when aggregated, involve an
amount in excess of 5% of the current
value of plan assets--continued:
Royal Maccabees Life Insurance
Company--continued S&P 500 Fund
37 purchases $ 574,360 $ 574,360
88 sales 1,366,152 *
Equity Income Fund
44 purchases 212,973 212,973
104 sales 1,455,857 *
Equity Growth Fund
42 purchases 152,439 152,439
102 sales 1,656,467 *
Money Market Fund
40 purchases 176,019 176,019
105 sales 535,478 *
SAFTY+ #2
82 sales 82,528 *
</TABLE>
15
<PAGE> 19
Crowley's/Steinbach 401(k) Plan
EIN 38-0454910
Plan #002
Item 27d - Schedule of Reportable Transactions (continued)
<TABLE>
<CAPTION>
EXPENSE
DESCRIPTION OF ASSET (INCLUDING INCURRED
INTEREST RATE AND MATURITY IN PURCHASE SELLING LEASE WITH
IDENTITY OF PARTY INVOLVED CASE OF A LOAN) PRICE PRICE RENTAL TRANSACTION
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Category iii) A series of transactions
involving securities of the same issue
which, when aggregated, involve an
amount in excess of 5% of the current
value of plan assets--continued:
Royal Maccabees Life Insurance
Company--continued SAFTY+ #3
81 sales $ 113,563
SAFTY+ #4
81 sales 93,690
SAF-TR #5
3 purchases 10,203
80 sales 75,063
Short-term Investment Fund
58 purchases $ 697,660
55 sales 1,334,959
MFS Money Market Fund MFS Money Market Fund
12 purchases 3,920,619
7 sales 3,412,065
MFS Fixed Fund MFS Fixed Fund
18 purchases 1,536,544
<CAPTION>
CURRENT
VALUE OF
DESCRIPTION OF ASSET (INCLUDING COST ASSET ON NET
INTEREST RATE AND MATURITY IN OF TRANSACTION GAIN
IDENTITY OF PARTY INVOLVED CASE OF A LOAN) ASSET DATE (LOSS)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category iii) A series of transactions
involving securities of the same issue
which, when aggregated, involve an
amount in excess of 5% of the current
value of plan assets--continued:
Royal Maccabees Life Insurance
Company--continued SAFTY+ #3
81 sales $ 113,563 *
SAFTY+ #4
81 sales 93,690 *
SAF-TR #5
3 purchases $ 10,203 10,203
80 sales 75,063 *
Short-term Investment Fund
58 purchases 697,660 697,660
55 sales 1,334,959 *
MFS Money Market Fund MFS Money Market Fund
12 purchases 3,920,619 3,920,619
7 sales 3,412,065 *
MFS Fixed Fund MFS Fixed Fund
18 purchases 1,536,544 1,536,544
</TABLE>
16
<PAGE> 20
Crowley's/Steinbach 401(k) Plan
EIN 38-0454910
Plan #002
Item 27d - Schedule of Reportable Transactions (continued)
<TABLE>
<CAPTION>
EXPENSE
DESCRIPTION OF ASSET (INCLUDING INCURRED
INTEREST RATE AND MATURITY IN PURCHASE SELLING LEASE WITH
IDENTITY OF PARTY INVOLVED CASE OF A LOAN) PRICE PRICE RENTAL TRANSACTION
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Category iii) A series of transactions
involving securities of the same issue
which, when aggregated, involve an
amount in excess of 5% of the current
value of plan assets--continued:
MFS Government Limited MFS Government Limited Maturity
Maturity Fund Fund
7 purchases $ 492,548
MFS Bond Fund
6 purchases 661,691
Massachusetts Investors Trust Massachusetts Investors Trust
8 purchases 1,470,755
MFS Research Fund MFS Research Fund
8 purchases 1,544,553
Vanguard Index Trust Vanguard Index Trust
17 purchases 2,883,437
2 sales $ 3,257
<CAPTION>
CURRENT
VALUE OF
DESCRIPTION OF ASSET (INCLUDING COST ASSET ON NET
INTEREST RATE AND MATURITY IN OF TRANSACTION GAIN
IDENTITY OF PARTY INVOLVED CASE OF A LOAN) ASSET DATE (LOSS)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Category iii) A series of transactions
involving securities of the same issue
which, when aggregated, involve an
amount in excess of 5% of the current
value of plan assets--continued:
MFS Government Limited MFS Government Limited Maturity
Maturity Fund Fund
7 purchases $ 492,548 $ 492,548
MFS Bond Fund
6 purchases 661,691 661,691
Massachusetts Investors Trust Massachusetts Investors Trust
8 purchases 1,470,755 1,470,755
MFS Research Fund MFS Research Fund
8 purchases 1,544,553 1,544,553
Vanguard Index Trust Vanguard Index Trust
17 purchases 2,833,437 2,833,437
2 sales 3,257 *
</TABLE>
There were no category ii) or iv) reportable transactions.
*Trustee does not track cost.
17
<PAGE> 21
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Crowley, Milner and Company, as the employer-sponsor of the Plan, has duly
caused this annual report to be signed on its behalf by the undersigned
thereunto duly authorized.
CROWLEY'S/STEINBACH
401(K) PLAN
By: CROWLEY, MILNER AND COMPANY
By: /s/ John R. Dallacqua
------------------------------
John R. Dallacqua, Vice
President-Finance
Dated: July 10, 1998
<PAGE> 22
EXHIBIT INDEX
Exhibit
No. Description
23 Consent of Independent Auditors.
<PAGE> 1
EXHIBIT 23
Consent of Independent Auditors
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 33-61207) pertaining to the Crowley's/Steinbach 401(k) Plan of Crowley,
Milner and Company of our report dated June 26, 1998, with respect to the
financial statements and schedules of the Crowley, Milner and Company Profit
Sharing Plan included in this Annual Report (Form 11-K) for the year ended
December 31, 1997.
/s/ ERNST & YOUNG LLP
Detroit, Michigan
June 29, 1998
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