<PAGE>
As filed with the Securities and Exchange Commission on August 5, 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):
July 21, 1997
FRETTER, INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
<S> <C> <C>
Michigan 0-14611 38-1557359
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification Number)
incorporation)
</TABLE>
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 June 30,
1997 that the Company filed with the United States Bankruptcy Court for Northern
District of Ohio, Eastern Division on July 21, 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 June 30, 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: August 5, 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
June 30, 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: 6-30-97
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: 7/18/97 /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: 06/30/97
<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 8,743 234,443
Salary Expenses other Employees 15,100 295,593
Court-Ordered Stay Bonus 21,167 162,921
Employee Benefits & Pensions
Payroll Taxes 5,188 53,582
Other Taxes 9,200 87,574
Rent and Lease Expense
Interest Expense 312,478 3,110,866
Insurance 61,796 422,051
Automobile and Truck Expense
Utilities (gas, electric, phone alarms) 18,455 150,979
Depreciation
Travel and Entertainment 8,961
Repairs and Maintenance 13,325 64,728
Advertising
Supplies, Office Expenses, etc. 24,934 99,601
Other: Specify Director & Trustee Fees 7,566 60,923
Other: Specify Misc. Fees 3,095
TOTAL EXPENSES: 497,953 4,755,317
--------- -----------
NET OPERATING PROFIT/(LOSS) (497,953) (4,727,880)
========= ===========
Add: Non-Operating Income:
Interest Income 1,076 4,154
Gain/Loss on Sale of Real Estate 1,143,052 3,457,247
Other Income 118,657 1,308,994
TOTAL 1,262,784 4,770,395
Less: Non-Operating Expenses:
Professional Fees 38,873 38,873
Other 39,575 492,560
--------- -----------
NET INCOME / (LOSS) 686,383 (450,046)
========= ===========
</TABLE>
<PAGE>
BALANCE SHEET *
-------------
Debtor: Fretter, Inc. Case No: 96-15177
Month Ending: 06/30/97
<TABLE>
<CAPTION>
ASSETS: Current Month Prior Month At Filing
<S> <C> <C> <C>
Cash: 624,074 567,523 89,252
Inventory: 791,999
Accounts Receivable: ** 34,777,085 34,782,083 35,930,804
Insider Receivables 7,414,781 7,414,781 7,424,547
Land and Buildings: 36,143,577 43,187,551 49,365,801
Furniture, Fixtures & Equip: 418,000
Accumulated Depreciation: (8,202,587) (9,588,861) (10,623,681)
Other: Prepaids & misc. 530,913 537,866 807,689
Other: Utility deposits 51,372 51,410
----------- ----------- -----------
TOTAL ASSETS: 71,339,215 76,952,353 84,204,411
=========== =========== ===========
LIABILITIES:
Postpetition Liabilities:
Accounts Payable: 362,737 362,737
Wages and Salaries: 19,746 62,320
Taxes Payable: 130,494 185,106
Other: 583,178 497,073 1,390
----------- ----------- -----------
TOTAL Postpetition Liab. 1,096,155 1,107,236 1,390
=========== =========== ===========
Secured Liabilities:
Subject to Postpetition
Collateral or Financing Order 20,155,160 26,157,165 29,002,401
All other Secured Liab. 4,399,393 4,403,582 7,371,875
----------- ----------- -----------
TOTAL Secured Liabilities: 24,554,553 30,560,747 36,374,276
=========== =========== ===========
Prepetition Liabilities:
Taxes & Other Priority Liab. 391,184 651,778 1,132,770
Unsecured Liabilities 6,765,082 6,765,082 6,849,397
Other: Accrued Liabilities 51,163,857 5,184,663 5,449,917
----------- ----------- -----------
TOTAL Prepetition Liab. 12,320,122 12,601,523 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. (16,139,061) (16,099,342) (15,560,830)
Retained Earnings-Post Pet. (450,046) (1,175,302) 0
----------- ----------- -----------
TOTAL Equity: (14,896,656) (15,582,193) (13,868,379)
=========== =========== ===========
TOTAL LIABILITIES
AND EQUITY: 71,339,215 76,952,353 84,204,411
=========== ========== ===========
</TABLE>
________________________________
* Preliminary Estimate
** Includes contingent receivable from Silo, Inc.
Collectibility indeterminate
<PAGE>
SUMMARY OF OPERATIONS
---------------------
Period Ended: 05/31/97
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 20,473 20,473 0
State: 0 3,855 3,855 0
Local:
FICA Withheld: 0 4,933 4,933 0
Employers FICA: 0 4,933 4,933 0
Unemployment Tax:
Federal: 90 36 0 126
State: 5,264 219 4,122 1,361
Sales, Use & Excise Taxes: 301 301
Property Taxes: 179,451 29,579 80,324 128,706
Workers' Compensation
Other:
------- ------ ------- -------
TOTALS: 185,106 64,028 118,640 130,494
======= ====== ======= =======
</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: 6-1-97 To: 6-30-97
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: 558,785.34 3,534.84 5,209.34 (6.45) 0.00
------------ --------- --------- --------- ----------
B. Receipts. Attach
separate schedule: 334,931.54 62,064.11 34,449.56 6.45 4,188.36
------------ --------- --------- --------- ----------
C. Balance Available
(A + B): 893,716.88 65,598.95 39,658.90 0.00 4,188.36
------------ --------- --------- --------- ----------
D. Less Disbursements
Attach separate
schedule 777,390.77 59,412.06 38,372.24 0.00 4,188.36
------------ --------- --------- --------- ----------
E. ENDING BALANCE
(C-D) 116,326.11 6,186.89 1,286.66 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:
-----------------------
Debtor in Possession
<PAGE>
MONTHLY CASH STATEMENT
----------------------
Debtor: Fretter, Inc. Statement for the period:
-------------
Case No.: 96-15177 From: 6-1-97 To: 6-30-97
------------- ------------- ------------
Cash Activity Analysis (Cash Basis Only):
<TABLE>
<CAPTION>
General Tax
Savings Savings
Acct. Acct.
---------- ---------- ---- ---- ----
<S> <C> <C> <C> <C> <C>
A. Beginning Balance: 0.00 0.00
---------- ---------- ---- ---- ----
B. Receipts. Attach Separate Schedule: 400,219.18 100,054.79
---------- ---------- ---- ---- ----
C. Balance Available (A+B): 400,219.18 100,054.79 0.00 0.00 0.00
---------- ---------- ---- ---- ----
D. Less Disbursements Attach separate
schedule: 0.00 0.00
---------- ---------- ---- ---- ----
E. Ending Balance (C-D): 400,219.18 100,054,79 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:
-------------------- ----------------------------------------
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
Health Insurance ------ ------
Life Insurance ------ ------
Retirement ------ ------
Company Vehicle ------ ------
Entertainment ------ ------
Travel ------ ------
Other Benefits ------ ------
CURRENT TOTAL:
Weekly or Monthly
------ ------
Dated: ------------------------------------
-------------------- Principal, Officer, Director, Insider
<PAGE>
LIST OF OMITTED SCHEDULES
1. Schedule of Michigan National Bank June 1997 Cash Receipts (Account Number
4707-38120-0)
2. Schedule of Michigan National Bank June 1997 Cash Disbursements (Account
Number 4707-38120-0)
3. Michigan National Bank Statement of Account for the Period June 1, 1997
to June 30, 1997 (Account Number 4707-38120-0)
4. Michigan National Bank Statement of Account for the Period June 1, 1997
to June 30, 1997 (Account Number 4707-38024-4)
5. Schedule of Michigan National Bank Payroll Account June 1997 Cash Receipts
and Disbursements (Account Number 4707-38024-4)
6. Schedules of Michigan National Bank Tax Account June 1997 Cash Receipts
and Disbursements (Account Number 4707-38128-3)
7. Michigan National Bank Statement of Account for the Period June 1, 1997
to June 30, 1997 (Account Number 4707-38128-3)
8. Schedules of Old Kent Cash Receipts and Disbursements (Account Number
229377)
9. Old Kent Bank Statement of Account for the Period June 1, 1997 through
June 30, 1997 (Account Number 229377)
10. Schedule of Bankers Trust Cash Receipts
