<PAGE>
As filed with the Securities and Exchange Commission on March 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):
February 20, 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 January 31,
1997 that the Company filed with the United States Bankruptcy Court for Northern
District of Ohio, Eastern Division on February 20, 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 January 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,
Fretter 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: March 7, 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
January 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: 1-31-97
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/IS NOT 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/ARE
NOT 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: 2/14/97 /s/ J. Michael McLean
--------------------------
Debtor in Possession
Controller
---------- ------------
Title Phone
<PAGE>
OPERATING STATEMENT (P&L)
-------------------------
(Accrual Basis)
---------------
Debtor: Fretter Inc. Case No: 96-15177
Month Ending: 1-31-97
<TABLE>
<CAPTION>
Total
Current Month Since Filing
<S> <C> <C>
Total Revenue/Sales $ 1,837 $ 449,867
Cost of Sales 1,837 450,475
--------- -----------
Gross Profit -- (608)
========= ===========
EXPENSES:
--------
Officer Compensation 27,895 171,318
Salary Expenses other Employees 40,687 165,681
Employee Benefits & Pensions -- --
Payroll Taxes 7,219 18,463
Other Taxes 9,200 36,800
Rent and Lease Expense -- --
Interest Expense 336,553 1,323,428
Insurance 59,556 190,497
Automobile and Truck Expense -- --
Utilities (gas, electric, phone) 16,238 67,045
Depreciation -- --
Travel and Entertainment 1,647 2,605
Repairs and Maintenance, alarm 8,809 25,425
Advertising -- --
Supplies, Office Expenses, etc. 8,369 17,333
Other: Specify Director & Trustee Fees 6,567 28,595
Other: Specify Misc. Fees 6,732
TOTAL EXPENSES: 522,740 2,054,530
--------- -----------
NET OPERATING PROFIT/(LOSS) $(522,740) $(2,054,530)
========= ===========
Add: Non-Operating Income:
Interest Income
Other Income 185,446 627,532
Less: Non-Operating Expenses:
Professional Fees
Other 57,834 183,655
--------- -----------
NET INCOME / (LOSS) $(395,128) $(1,610,653)
========= ===========
</TABLE>
<PAGE>
BALANCE SHEET *
-------------
Debtor: Fretter Inc. Case No: 96-15177
Month Ending: 1-31-97
<TABLE>
<CAPTION>
ASSETS: Current Month Prior Month At Filing
<S> <C> <C> <C>
Cash: 9,331 57,249 89,252
Inventory: 341,617 421,164 1,307,487
Accounts Receivables: 35,221,440 4,762,288 1,102,281
Insider Receivables ** 7,235,877 41,298,703 35,674,942
Land and Buildings: 7,235,877 49,357,008 55,562,318
Furniture, Fixtures & Equip: 267,003 272,634 576,118
Accumulated Depreciation: (10,997,609) (10,954,954) (11,923,676)
Other: Prepaids & misc. 354,325 357,278 768,378
Other: Utility deposits 57,161 57,161 0
----------- ----------- -----------
TOTAL ASSETS: 81,854,946 85,628,531 83,157,100
=========== =========== ===========
LIABILITIES:
Postpetition Liabilities:
Accounts Payable: 362,737 9,416 0
Wages and Salaries: 42,293 52,464 0
Taxes Payable: 132,051 97,723 (9,211)
Other: 1,392,993 1,028,921 0
----------- ----------- -----------
TOTAL Postpetition Liab. 1,930,074 1,188,524 (9,211)
=========== =========== ===========
Secured Liabilities:
Subject to Postpetition
Collateral or Financing Order 29,002,401 29,002,401 29,002,401
All other Secured Liab. 5,915,876 6,430,777 7,382,657
----------- ----------- -----------
TOTAL Secured Liabilities: 34,918,277 35,433,178 36,385,058
=========== =========== ===========
Prepetition Liabilities:
Taxes & Other Priority Liab. 58,858 58,858 58,858
Unsecured Liabilities 6,649,481 9,641,432 9,641,432
Other: Accrued Liabilities 6,157,322 8,258,148 7,853,863
----------- ----------- -----------
TOTAL Prepetition Liab. 12,865,661 17,958,438 17,554,153
=========== =========== ===========
Redeemable Prfd. Stock 48,265,040 48,265,040 44,559,316
Equity:
Owners Capital: 1,692,451 1,746,636 1,746,636
Retained Earnings-Pre Pet. (16,205,904) (17,747,760) (17,078,852)
Retained Earnings-Post Pet. (81,854,946) (1,215,525) --
----------- ----------- -----------
TOTAL Equity: (16,124,106) (17,216,649) 15,332,216)
=========== =========== ===========
TOTAL LIABILITIES
AND EQUITY: 1,610,653 85,628,531 83,157,100
=========== =========== ===========
</TABLE>
________________________________
* Preliminary estimate
** Includes contingent receivable from Silo, Inc. collectibility
indeterminate
<PAGE>
SUMMARY OF OPERATIONS
---------------------
Period Ended: 1-31-97
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 16,891 16,891 0
State: 0 3,554 3,554 0
Local: 0 0 0 0
FICA Withheld: 0 6,015 6,015 0
Employers FICA: 0 6,015 6,015 0
Unemployment Tax:
Federal: (150) 477 -- (327)
State: 220 1,724 -- 1,724
Sales, Use & Excise Taxes: 0 0 -- 0
Property Taxes: 97,500 32,500 -- 130,000
Workers' Compensation -- -- -- --
Other: 401(k) -- 0
------ ------ ------ ------
TOTALS: 97,570 67,176 32,695 132,051
====== ====== ====== =======
</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: 1-1-97 To: 1-31-97
Cash Activity Analysis (Cash Basis Only):
<TABLE>
<CAPTION>
General Payroll Tax Cash Coll. B.T.
Acct. Acct. Acct. Acct. Direct
------- ------- ----- --------- ------
<S> <C> <C> <C> <C> <C>
A. Beginning Balance: 55,908.60 (4.32) 130.50 1,214.66 --
---------- --------- --------- --------- ----------
B. Receipts. Attach
separate schedule: 106,297.03 57,596.82 34,672.60 2.97 510,891.88
---------- --------- --------- --------- ----------
C. Balance Available
(A + B): 162,205.63 57,592.50 34,803.10 1,271.63 --
---------- --------- --------- --------- ----------
D. Less Disbursements
Attach separate
schedule 156,077.57 57,706.85 32,694.51 9.22 510,891.88
---------- --------- --------- --------- ----------
E. ENDING BALANCE
(C-D) 6,128.06 114.35 2,108.57 1,208.41 --
========== ========= ========= ========= ==========
(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: 2-14-97
-----------------------
Debtor in Possession
<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: John B. Hurley Capacity: X Principal
-----
X Officer
-----
X Director
-----
X Insider
-----
Detailed Description of Duties: As President and CEO, directs all financial,
administrative and merchandising activities, with direct responsibility for sale
of real estate, legal settlements and cash flow planning
Current Compensation Paid: Semi-
Weekly or Monthly
________ 3,500
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>
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: Julian L. Potts Capacity: Principal
------
X Officer
------
Director
------
Insider
------
Detailed Description of Duties: As Vice President has overall direct
responsibility for inventory and vendor payables as well as sale of store
fixtures, furniture and inventory
Current Compensation Paid: Semi-
Weekly or Monthly
8,333
------ ------
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>
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: Semi-
Weekly or Monthly
4,583
------ ------
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 January 1997 Cash Receipts
(Account Number 4707-38120-0)
2. Schedule of Michigan National Bank January 1997 Cash Disbursements
(Account Number 4707-38120-0)
3. Michigan National Bank Statement of Account for the Period January 1, 1997
to January 31, 1997 (Account Number 4707-38120-0)
4. Michigan National Bank Statement of Account for the Period January 1, 1997
to January 31, 1997 (Account Number 4707-38024-4)
5. Schedule of Michigan National Bank Payroll Account January 1997 Cash
Receipts and Disbursements (Account Number 4707-38024-4)
6. Schedules of Michigan National Bank Tax Account January 1997 Cash Receipts
and Disbursements (Account Number 4707-38128-3)
7. Michigan National Bank Statement of Account for the Period January 1, 1997
to January 31, 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 January 1, 1997 through
January 31, 1997 (Account Number 229377)
10. Schedules of Bankers Trust Cash Receipts and Disbursements
