<PAGE>
As filed with the Securities and Exchange Commission on October 6, 1997
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):
September 22, 1997
FRETTER, INC.
(Exact name of registrant as specified in its charter)
Michigan 0-14611 38-1557359
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification Number)
incorporation)
12501 Grand River
Brighton, Michigan 48116
(Address of principal executive offices) (Zip Code)
(810) 220-5000
(Registrant's telephone number, including area code)
<PAGE>
Item 5. Other Events.
- ---------------------
Fretter, Inc. (the "Company") is filing herewith the Monthly Operating
Reports of Debtors and Debtors in Possession for the Period Ended August 31,
1997 that the Company filed with the United States Bankruptcy Court for Northern
District of Ohio, Eastern Division on September 22, 1997 in connection with the
Company's ongoing proceeding under chapter 11 of the United States Bankruptcy
Code (11 U.S.C. Sections 101-1330), Case No. 96-15177.
Item 7. Exhibits.
- ------------------
(c) Exhibits.
--------
99.1 Monthly Operating Reports of Debtors and Debtors in Possession
for the Period Ended August 31, 1997 (1)
- -------------
(1) The Company agrees to furnish supplementally a copy of any omitted schedule
or similar attachment to the Commission upon its request.
-2-
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this Current Report on Form 8-K to be signed on its
behalf by the undersigned thereunto duly authorized.
FRETTER, INC.
By /s/ J. Michael McLean
--------------------------------------
J. Michael McLean
Controller
Date: October 6, 1997
-3-
<PAGE>
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
Exhibit Sequential
Number Document Description Page Number
- --------- ------------------------------------------- -----------
<S> <C> <C>
99.1 Monthly Operating Reports of Debtors and
Debtors in Possession for the Period Ended
August 31, 1997
===================================================================
</TABLE>
-4-
<PAGE>
EXHIBIT 99.1
TRANSMITTAL OF FINANCIAL REPORTS AND
CERTIFICATION OF COMPLIANCE WITH
UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR
THE PERIOD ENDED: 8-31-97
IN RE: :
CASE NO: 96-15177
Fretter, Inc. : Chapter 11
Judge Morgenstern-Clarren
:
- ------------------------------------
Debtor
:
As debtor in possession, I affirm:
1. That I have reviewed the financial statements attached hereto, consisting
of:
X Operating Statement (Form 2)
-----
X Balance Sheet (Form 3)
-----
X Summary of Operations (Form 4)
-----
X Monthly Cash Statements (Form 5)
-----
X Statement of Compensation (Form 6)
-----
----- -----------------------------------------
and that they have been prepared in accordance with normal and customary
accounting practices, and fairly and accurately reflect the debtor's financial
activity for the period stated:
2. That the insurance as described in Section 4 of the Operating Instructions
and Reporting Requirements for Chapter 11 Cases is in effect; and, (if not,
attach written explanation)
3. That all postpetition taxes as described in Sections 1 and 14 of the
Operating Instructions and Reporting Requirements For Chapter 11 cases are
current. (If not, attach written explanation)
4. No professional fees (attorney, accountant, etc.) have been paid without
specific court authorization. Explain on separate sheet if not true.
I hereby certify, under penalty of perjury, that the information provided herein
is true and correct to the best of my information and belief.
Dated: 9/18/97 /s/ J. Michael McLean
--------------------------
Debtor in Possession
Controller 810-220-5007
---------- ------------
Title Phone
<PAGE>
OPERATING STATEMENT (P&L)
-------------------------
(Accrual Basis)
---------------
Debtor: Fretter Inc. Case No: 96-15177
Month Ending: 08/31/97
<TABLE>
<CAPTION>
Total
Current Month Since Filing
<S> <C> <C>
Total Revenue/Sales 0 532,663
Cost of Sales 0 505,226
--------- -----------
Gross Profit 0 27,437
========= ===========
EXPENSES:
--------
Officer Compensation 9,167 250,661
Salary Expenses other Employees 11,731 320,767
Court-Ordered Stay Bonus 162,921
Employee Benefits & Pensions
Payroll Taxes 1,597 57,486
Other Taxes 87,574
Rent and Lease Expense
Interest Expense 196,792 3,538,249
Insurance 19,862 497,462
Automobile and Truck Expense
Utilities (gas, electric, phone alarms) (80) 153,827
Depreciation
Travel and Entertainment 698 10,957
Repairs and Maintenance 8,611 111,618
Advertising
Supplies, Office Expenses, etc. 25,510 148,091
Other: Specify Director & Trustee Fees 9,566 80,055
Other: Specify Misc. Fees 3,095
TOTAL EXPENSES: 283,454 5,422,763
--------- -----------
NET OPERATING PROFIT/(LOSS) (283,454) (5,395,326)
========= ===========
Add: Non-Operating Income:
Interest Income 1,518 7,328
Gain/Loss on Sale of Real Estate 1,080,429 4,880,657
Other Income 125,819 1,527,036
TOTAL 1,207,766 6,415,021
Less: Non-Operating Expenses:
Professional Fees 3,134 50,350
Other 36,174 566,349
--------- -----------
NET INCOME / (LOSS) 885,004 402,996
========= ===========
</TABLE>
<PAGE>
BALANCE SHEET *
-------------
Debtor: Fretter, Inc. Case No: 96-15177
Month Ending: 08/31/97
<TABLE>
<CAPTION>
ASSETS: Current Month Prior Month At Filing
<S> <C> <C> <C>
Cash: 557,888 566,623 89,252
Inventory: 791,999
Accounts Receivable: ** 34,731,972 34,773,637 35,930,804
Insider Receivables 7,414,781 7,414,781 7,424,547
Land and Buildings: 32,342,490 35,885,570 49,365,801
Furniture, Fixtures & Equip: 418,000
Accumulated Depreciation: (7,411,252) (8,042,355) (10,623,681)
Other: Prepaids & misc. 2,394,525 473,852 807,689
Other: Utility deposits 48,843 50,051
----------- ----------- -----------
TOTAL ASSETS: 70,079,247 71,122,159 84,204,411
=========== =========== ==========
LIABILITIES:
Postpetition Liabilities:
Accounts Payable: 210,341 255,154
Wages and Salaries: 10,640 11,891
Taxes Payable: 149,226 200,488
Other: 722,831 683,618 1,390
----------- ----------- -----------
TOTAL Postpetition Liab. 1,093,038 1,151,151 1,390
=========== =========== ===========
Secured Liabilities:
Subject to Postpetition
Collateral or Financing Order 18,023,782 19,869,372 29,002,401
All other Secured Liab. 4,330,267 4,383,920 7,371,875
----------- ----------- -----------
TOTAL Secured Liabilities: 22,354,049 24,253,292 36,374,276
=========== =========== ===========
Prepetition Liabilities:
Taxes & Other Priority Liab. 904,893 736,440 1,132,770
Unsecured Liabilities 6,612,555 6,611,527 6,849,397
Other: Accrued Liabilities 4,854,378 4,994,419 5,449,917
----------- ----------- -----------
TOTAL Prepetition Liab. 12,371,826 12,342,386 13,432,084
=========== =========== ===========
Redeemable Preferred Stock 48,265,040 48,265,040 48,265,040
----------- ----------- -----------
Equity:
Owners' Capital: 1,692,451 1,692,451 1,692,451
Retained Earnings-Pre Pet. (16,100,153) (16,100,153) (15,560,830)
Retained Earnings-Post Pet. (402,996) (482,008) 0
----------- ----------- -----------
TOTAL Equity: (14,004,706) (14,889,710) (13,868,379)
=========== =========== ===========
TOTAL LIABILITIES
AND EQUITY: 70,079,247 71,122,159 84,204,411
=========== ========== ===========
</TABLE>
________________________________
* Preliminary Estimate
** Includes contingent receivable from Silo, Inc.
Collectibility indeterminate
<PAGE>
SUMMARY OF OPERATIONS
---------------------
Period Ended: 08/31/97
Debtor: Fretter, Inc. Case No: 96-15177
Schedule of Postpetition Taxes Payable
--------------------------------------
<TABLE>
<CAPTION>
Beginning Accrued/ Payments/ Ending
Balance Withheld Deposits Balance
---------- -------- --------- --------
<S> <C> <C> <C> <C>
Income Taxes Withheld:
Federal: 0 3,564 3,564 0
State: 0 977 977 0
Local:
FICA Withheld: 0 1,401 1,401 0
Employers FICA: 0 1,401 1,401 0
Unemployment Tax:
Federal: 38 30 68
State: 174 168 342
Sales, Use & Excise Taxes: 301 301
Property Taxes: 199,975 18,419 69,879 148,515
Workers' Compensation
Other:
------- ------ ------- -------
TOTALS 200,488 25,960 77,222 149,226
======= ====== ======= =======
</TABLE>
AGING OF ACCOUNTS RECEIVABLE
AND POSTPETITION ACCOUNTS PAYABLE
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Age in Days 0-30 30-60 Over 60
PostPetition
Accounts Payable ______ ______ ______
Accounts Receivable ______ ______ ______
</TABLE>
For all postpetition accounts payable over 30 days old, please attach a sheet
listing each such account, to whom the account is owed, the date the account was
opened, and the reason for non-payment of the account.
Describe events or factors occurring during this reporting period materially
affecting operations and formulation of a Plan of Reorganization.
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
<PAGE>
MONTHLY CASH STATEMENT
Debtor: Fretter, Inc. Statement for the period:
Case #: 96-15177 From: 8-1-97 To: 8-31-97
Cash Activity Analysis (Cash Basis Only):
<TABLE>
<CAPTION>
General Payroll Tax Cash Coll. B.T.
Acct. Acct. Acct. Acct. B.T. Direct(1)
------- ------- ----- --------- ---------
<S> <C> <C> <C> <C> <C>
A. Beginning Balance: 103,177.14 80,602.05 5,255.45 0.00 0.00
------------ --------- --------- --------- ----------
B. Receipts. Attach
Separate Schedule: 80,602.05 17,091.83 7,539.29 47,679.13
------------ --------- --------- --------- ----------
C. Balance Available
(A + B): 183,779.15 28,376.23 12,794.74 47,679.13 0.00
------------ --------- --------- --------- ----------
D. Less Disbursements
Attach Separate
Schedule: 90,517.34 17,591.83 7,353.54 47,679.13
------------ --------- --------- --------- ----------
E. ENDING BALANCE
(C-D) 93,261.85 10,784.40 5,441.20 0.00 0.00
------------ --------- --------- --------- ----------
(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH
ACCOUNT)
General Account:
1. Depository Name & Location Michigan National Bank, Brighton, MI
2. Account Number 4707-38120-0
Payroll Account:
1. Depository Name & Location Michigan National Bank, Brighton, MI
2. Account Number 4707-38024-4
Tax Account:
1. Depository Name & Location Michigan National Bank, Brighton, MI
2. Account Number 4707-38128-3
</TABLE>
Other monies on hand (specify type and location) (i.e., CD's petty cash):
BT Collateral Acct. - Old Kent Bank, Acct. No 229377
BT Direct - BT cash collateral is forwarded directly to B.T.
Date: 9/18/97 /s/ J. Michael McLean
-----------------------
Debtor in Possession
<PAGE>
MONTHLY CASH STATEMENT
----------------------
Debtor: Fretter, Inc. Statement for the period:
-------------
Case No.: 96-15177 From: 8-1-97 To: 8-31-97
------------- ------------- ------------
Cash Activity Analysis (Cash Basis Only):
<TABLE>
<CAPTION>
General Tax
Savings Savings
Acct. Acct.
------------ ---------- ---- ---- ----
<S> <C> <C> <C> <C> <C>
A. Beginning Balance: 351,527.94 95,378.34
------------ ---------- ---- ---- ----
B. Receipts. Attach Separate Schedule: 1,194.20 324.00
------------ ---------- ---- ---- ----
C. Balance Available (A+B): 352,722.14 95,702.34 0.00 0.00 0.00
------------ ---------- ---- ---- ----
D. Less Disbursements Attach separate
schedule: 12.17 12.17
------------ ---------- ---- ---- ----
E. Ending Balance (C-D): 352,709.97 95,690.17 0.00 0.00 0.00
------------ ---------- ---- ---- ----
</TABLE>
(PLEASE ATTACH COPIES OF MOST RECENT RECONCILED BANK STATEMENTS FROM EACH
ACCOUNT)
General Savings Account
1. Depository Name & Location Michigan National Bank, Brighton, MI
----------------------------------------
2. Account Number 4707-38293-5
----------------------------------------
Tax Savings Account
1. Depository Name & Location Michigan National Bank, Brighton, MI
----------------------------------------
2. Account Number 4707-38357-8
----------------------------------------
----------------------------------------
----------------------------------------
Other monies on hand (specify type and location)(i.e., CD's petty cash):
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Date: 9/18/97 /s/ J. Michael McLean
-------------------- ----------------------------------------
Debtor in Possession
FORM 5
-ix-
<PAGE>
MONTHLY STATEMENT OF COMPENSATION
---------------------------------
The following information is to be provided for each shareholder,
officer, director, manager, insider, or owner that is employed by the debtor in
possession. Attach additional pages if necessary.
Name: J. Michael McLean Capacity: Principal
------
X Officer
------
Director
------
Insider
------
Detailed Description of Duties: As Controller, directs accounting, payroll,
benefit plans and tax filings as well as assists in cash flow planning
Current Compensation Paid:
Weekly or Monthly
9,167.00
------ --------
Current Benefits Received:
Weekly or Monthly
Vacation Pay ------ --------
Holiday Pay ------ --------
Retirement ------ --------
Company Vehicle ------ --------
Entertainment ------ --------
Travel ------ --------
Other Benefits ------ --------
CURRENT TOTAL:
Weekly or Monthly
------ --------
/s/ J. Michael McLean
Dated: ------------------------------------
-------------------- Principal, Officer, Director, Insider
<PAGE>
LIST OF OMITTED SCHEDULES
1. Schedule of Michigan National Bank August 1997 Cash Receipts (Account Number
4707-38120-0)
2. Schedules of Michigan National Bank August 1997 Cash Disbursements, Account
Reconciliation and Outstanding Check List (Account Number 4707-38120-0)
3. Michigan National Bank Statement of Account for the Period August 1, 1997
to August 31, 1997 (Account Number 4707-38120-0)
4. Michigan National Bank Statement of Account for the Period August 1, 1997
to August 31, 1997 (Account Number 4707-38024-4)
5. Schedules of Michigan National Bank Payroll Account August 1997 Cash
Receipts and Disbursements and Account Reconciliation (Account Number
4707-38024-4)
6. Schedules of Michigan National Bank Tax Account August 1997 Cash Receipts
and Disbursements and Account Reconciliation (Account Number 4707-38128-3)
7. Michigan National Bank Statement of Account for the Period August 1, 1997
to August 31, 1997 (Account Number 4707-38128-3)
8. Schedule of Bankers Trust August 1997 Cash Receipts
9. Schedules of Michigan National Bank General Savings Account August 1997 Cash
Receipts and Disbursements (Account Number 4707-38293-5)
10. Michigan National Bank Statement of Account for the Period August 1, 1997
through August 31, 1997 (Account Number 4707-38293-5)
11. Schedule of Michigan National Bank Tax Savings Account August 1997 Cash
Receipts and Disbursements (Account Number 4707-38357-8)
12. Michigan National Bank Statement of Account for the Period August 1, 1997
to August 31, 1997 (Account Number 4707-38357-8)
