<PAGE>
As filed with the Securities and Exchange Commission on May 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):
April 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 March 31,
1997 that the Company filed with the United States Bankruptcy Court for Northern
District of Ohio, Eastern Division on April 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 March 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: May 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
March 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: 3-31-97
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: 4/18/97 /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: 3/31/97
<TABLE>
<CAPTION>
Total
Current Month Since Filing
<S> <C> <C>
Total Revenue/Sales 2,744 524,660
Cost of Sales 2,744 497,223
--------- -----------
Gross Profit 0 27,437
========= ===========
EXPENSES:
--------
Officer Compensation 15,421 200,790
Salary Expenses other Employees 33,448 229,263
Court-Ordered Stay Bonus 78,671 84,088
Employee Benefits & Pensions
Payroll Taxes 11,321 40,978
Other Taxes 9,200 59,154
Rent and Lease Expense
Interest Expense 338,674 2,119,203
Insurance 54,935 266,731
Automobile and Truck Expense
Utilities (gas, electric, phone alarms) 16,273 102,126
Depreciation
Travel and Entertainment 425 5,817
Repairs and Maintenance 9,669 37,823
Advertising
Supplies, Office Expenses, etc. 9,838 43,150
Other: Specify Director & Trustee Fees 6,567 38,224
Other: Specify Misc. Fees 1,712 3,095
TOTAL EXPENSES: 586,154 3,230,441
--------- -----------
NET OPERATING PROFIT/(LOSS) (586,154) (3,203,004)
========= ===========
Add: Non-Operating Income:
Interest Income
Gain/Loss on Sale of Real Estate 732,007 732,007
Other Income 167,648 941,579
TOTAL 899,655 1,673,586
Less: Non-Operating Expenses:
Professional Fees
Other 62,486 373,835
--------- -----------
NET INCOME / (LOSS) 251,016 (1,903,252)
========= ===========
</TABLE>
<PAGE>
BALANCE SHEET *
-------------
Debtor: Fretter Inc. Case No: 96-15177
Month Ending: 3/31/97
<TABLE>
<CAPTION>
ASSETS: Current Month Prior Month At Filing
<S> <C> <C> <C>
Cash: 187,828 105,272 89,252
Inventory: 294,261 297,005 791,999
Accounts Receivables: ** 34,866,186 34,904,797 35,930,804
Insider Receivables 7,414,781 7,414,781 7,424,547
Land and Buildings: 48,557,369 49,365,801 49,365,801
Furniture, Fixtures & Equip: 247,484 261,598 418,000
Accumulated Depreciation: (10,630,880) (10,757,354) (10,623,681)
Other: Prepaids & misc. 686,460 745,720 807,689
Other: Utility deposits 52,425 53,760
----------- ----------- -----------
TOTAL ASSETS: 81,675,914 82,391,381 84,204,411
=========== =========== ===========
LIABILITIES:
Postpetition Liabilities:
Accounts Payable: 362,737 362,737
Wages and Salaries: 23,488 21,795
Taxes Payable: 238,535 165,566
Other: 1,632,905 1,827,941 1,390
----------- ----------- -----------
TOTAL Postpetition Liab. 2,257,665 2,378,039 1,390
=========== =========== ===========
Secured Liabilities:
Subject to Postpetition
Collateral or Financing Order 29,002,401 29,002,401 29,002,401
All other Secured Liab. 5,271,486 5,844,241 7,371,875
----------- ----------- -----------
TOTAL Secured Liabilities: 34,273,887 34,846,642 36,374,276
=========== =========== ===========
Prepetition Liabilities:
Taxes & Other Priority Liab. 919,600 939,332 1,132,770
Unsecured Liabilities 6,765,082 6,674,431 6,849,397
Other: Accrued Liabilities 5,254,046 5,352,917 5,449,917
----------- ----------- -----------
TOTAL Prepetition Liab. 12,938,729 12,966,680 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. (15,848,605) (15,603,203) (15,560,830)
Retained Earnings-Post Pet. (1,903,252) (2,154,268) 0
----------- ----------- -----------
TOTAL Equity: (16,059,407) (16,065,020) (13,868,379)
=========== =========== ===========
TOTAL LIABILITIES
AND EQUITY: 81,675,914 82,391,381 84,204,411
========== =========== ===========
</TABLE>
________________________________
* Preliminary Estimate
** Includes contingent receivable from Silo, Inc.
Collectibility indeterminate
<PAGE>
SUMMARY OF OPERATIONS
---------------------
Period Ended: 3/31/97
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 29,893 6,879 23,014
State: 0 5,575 1,938 3,637
Local:
FICA Withheld: 0 9,541 3,480 6,061
Employers FICA: 0 9,541 3,480 6,061
Unemployment Tax:
Federal: 518 72 590
State: 2,449 1,708 4,157
Sales, Use & Excise Taxes: 99 84 15
Property Taxes: 162,500 32,500 195,000
Workers' Compensation
Other: 401(k)
------- ------ ------ ------
TOTALS: 165,566 88,830 15,861 238,535
======= ====== ====== =======
</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: 3-1-97 To: 3-31-97
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: 100,845.24 206.20 3,018.99 1,201.82 0.00
---------- ---------- --------- --------- ----------
B. Receipts. Attach
separate schedule: 327,183.99 101,810.19 16,262.12 2.65 99,043.08
---------- ---------- --------- --------- ----------
C. Balance Available
(A + B): 428,029.23 102,016.39 19,281.11 1,204.47 99,043.08
---------- ---------- --------- --------- ----------
D. Less Disbursements
Attach separate
schedule 263,452.79 83,458.05 15,782.95 9.00 99,043.08
---------- ---------- --------- --------- ----------
E. ENDING BALANCE
(C-D) 164,576.44 18,558.34 3,498.16 1,195.47 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 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:
Weekly or Monthly
________ 7,000
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:
Weekly or Monthly
9,167
------ ------
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 March 1997 Cash Receipts (Account Number
4707-38120-0)
2. Schedule of Michigan National Bank March 1997 Cash Disbursements (Account
Number 4707-38120-0)
3. Michigan National Bank Statement of Account for the Period March 1, 1997
to March 31, 1997 (Account Number 4707-38120-0)
4. Michigan National Bank Statement of Account for the Period March 1, 1997
to March 31, 1997 (Account Number 4707-38024-4)
5. Schedule of Michigan National Bank Payroll Account March 1997 Cash Receipts
and Disbursements (Account Number 4707-38024-4)
6. Schedules of Michigan National Bank Tax Account March 1997 Cash Receipts
and Disbursements (Account Number 4707-38128-3)
7. Michigan National Bank Statement of Account for the Period March 1, 1997
to March 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 March 1, 1997 through
March 31, 1997 (Account Number 229377)
10. Schedule of Bankers Trust Cash Receipts
