<PAGE>
As filed with the Securities and Exchange Commission on November 4, 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):
October 20, 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 September 30,
1997 that the Company filed with the United States Bankruptcy Court for Northern
District of Ohio, Eastern Division on October 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 Ended September 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: November 4, 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
September 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: 9-30-97
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: 10/17/97 /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: 09/30/97
<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 8,744 259,405
Salary Expenses other Employees 11,017 331,784
Court-Ordered Stay Bonus 162,921
Employee Benefits & Pensions 0
Payroll Taxes 1,141 58,627
Other Taxes 87,574
Rent and Lease Expense 11,112 11,112
Interest Expense 160,622 3,698,871
Insurance 16,781 514,243
Automobile and Truck Expense 0
Utilities (gas, electric, phone alarms) 153,827
Depreciation 0
Travel and Entertainment 752 11,709
Repairs and Maintenance 9,471 121,089
Advertising 0
Supplies, Office Expenses, etc. 42,750 190,841
Other: Specify Director & Trustee Fees 9,566 89,621
Other: Specify Misc. Fees 3,095
TOTAL EXPENSES: 271,956 5,694,719
--------- -----------
NET OPERATING PROFIT/(LOSS) (271,956) (5,667,282)
========= ===========
Add: Non-Operating Income:
Interest Income 2,706 10,034
Gain/Loss on Sale of Real Estate 1,487,673 6,368,330
Other Income 86,351 1,613,387
TOTAL 1,576,730 7,991,751
Less: Non-Operating Expenses:
Professional Fees 2,500 52,850
Other (4,132) 562,217
--------- -----------
NET INCOME / (LOSS) 1,306,406 1,709,402
========= ===========
</TABLE>
<PAGE>
BALANCE SHEET *
-------------
Debtor: Fretter, Inc. Case No: 96-15177
Month Ending: 09/30/97
<TABLE>
<CAPTION>
ASSETS: Current Month Prior Month At Filing
<S> <C> <C> <C>
Cash: 1,227,222 557,888 89,252
Inventory: 791,999
Accounts Receivable: ** 34,579,092 34,731,972 35,930,804
Insider Receivables 7,414,781 7,414,781 7,424,547
Land and Buildings: 25,898,437 32,342,490 49,365,801
Furniture, Fixtures & Equip: 418,000
Accumulated Depreciation: (5,857,842) (7,411,252) (10,623,681)
Other: Prepaids & misc. 1,122,838 2,394,525 807,689
Other: Utility deposits 48,565 48,843
----------- ----------- -----------
TOTAL ASSETS: 64,433,093 70,079,247 84,204,411
=========== =========== ==========
LIABILITIES:
Postpetition Liabilities:
Accounts Payable: 196,912 210,341
Wages and Salaries: 10,081 10,640
Taxes Payable: 121,927 149,226
Other: 697,396 722,831 1,390
----------- ----------- -----------
TOTAL Postpetition Liab. 1,026,316 1,093,038 1,390
=========== =========== ===========
Secured Liabilities:
Subject to Postpetition
Collateral or Financing Order 11,433,444 18,023,782 29,002,401
All other Secured Liab. 4,170,975 4,330,267 7,371,875
----------- ----------- -----------
TOTAL Secured Liabilities: 15,604,419 22,354,049 36,374,276
=========== =========== ===========
Prepetition Liabilities:
Taxes & Other Priority Liab. 879,795 904,893 1,132,770
Unsecured Liabilities 6,559,542 6,612,555 6,849,397
Other: Accrued Liabilities 4,796,281 4,854,378 5,449,917
----------- ----------- -----------
TOTAL Prepetition Liab. 12,235,618 12,371,826 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. 1,709,402 402,996 0
----------- ----------- -----------
TOTAL Equity: (12,698,300) (14,004,706) (13,868,379)
=========== =========== ===========
TOTAL LIABILITIES
AND EQUITY: 64,433,093 70,079,247 84,204,411
========== =========== ===========
</TABLE>
______________________________
* Preliminary Estimate
** Includes contingent receivable from Silo, Inc.
Collectibility indeterminate
<PAGE>
SUMMARY OF OPERATIONS
---------------------
Period Ended: 09/30/97
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 3,216 3,216 0
State: 0 866 866 0
Local:
FICA Withheld: 0 1,001 1,001 0
Employers FICA: 0 1,001 1,001 0
Unemployment Tax:
Federal: 68 14 82
State: 342 125 467
Sales, Use & Excise Taxes: 301 301 0
Property Taxes: 148,515 15,201 42,338 121,378
Workers' Compensation
Other:
------- ------ ------- -------
TOTALS 149,226 21,424 48,723 121,927
======= ====== ======= =======
</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: 9-1-97 To: 9-30-97
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: 93,261.85 10,784.40 5,441.20 0.00 0.00
------------ --------- --------- ---------- ----------
B. Receipts. Attach
Separate Schedule: 851,725.74 15,328.96 7,307.49 159,292.46
------------ --------- --------- ---------- ----------
C. Balance Available
(A + B): 944,387.59 26,113.36 12,748.69 159,292.46 0.00
------------ --------- --------- ---------- ----------
D. Less Disbursements
Attach Separate
Schedule: 833,222.48 15,328.96 7,468.67 159,292.46
------------ --------- --------- ---------- ----------
E. ENDING BALANCE
(C-D) 111,165.11 10,784.40 5,280.02 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: 9-1-97 To: 9-30-97
------------- ------------- ------------
Cash Activity Analysis (Cash Basis Only):
<TABLE>
<CAPTION>
General Tax
Savings Savings
Acct. Acct.
------------ ---------- ---- ---- ----
<S> <C> <C> <C> <C> <C>
A. Beginning Balance: 352,709.97 95,690.17
------------ ---------- ---- ---- ----
B. Receipts. Attach Separate Schedule: 651,302.03 314.57
------------ ---------- ---- ---- ----
C. Balance Available (A+B): 1,004,012.00 96,004.74 0.00 0.00 0.00
------------ ---------- ---- ---- ----
D. Less Disbursements Attach separate
schedule: 12.00 12.00
------------ ---------- ---- ---- ----
E. Ending Balance (C-D): 1,004,000.00 95,992.74 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
Vacation Pay ------ --------
Holiday Pay ------ --------
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 September 1997 Cash Receipts (Account
Number 4707-38120-0)
2. Schedules of Michigan National Bank September 1997 Cash Disbursements,
Account Reconciliation and Outstanding Check List (Account Number 4707-38120-0)
3. Michigan National Bank Statement of Account for the Period September 1, 1997
to September 30, 1997 (Account Number 4707-38120-0)
4. Michigan National Bank Statement of Account for the Period September 1, 1997
to September 30, 1997 (Account Number 4707-38024-4)
5. Schedules of Michigan National Bank Payroll Account September 1997 Cash
Receipts and Disbursements and Account Reconciliation (Account Number
4707-38024-4)
6. Schedules of Michigan National Bank Tax Account September 1997 Cash Receipts
and Disbursements and Account Reconciliation (Account Number 4707-38128-3)
7. Michigan National Bank Statement of Account for the Period September 1, 1997
to September 30, 1997 (Account Number 4707-38128-3)
8. Schedule of Bankers Trust September 1997 Cash Receipts
9. Schedules of Michigan National Bank General Savings Account September 1997
Cash Receipts and Disbursements (Account Number 4707-38293-5)
10. Michigan National Bank Statement of Account for the Period September 1, 1997
through September 30, 1997 (Account Number 4707-38293-5)
11. Schedule of Michigan National Bank Tax Savings Account September 1997 Cash
Receipts and Disbursements (Account Number 4707-38357-8)
12. Michigan National Bank Statement of Account for the Period September 1, 1997
to September 30, 1997 (Account Number 4707-38357-8)
