<PAGE>
As filed with the Securities and Exchange Commission on February 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):
January 21, 1996
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 December 31,
1996 that the Company filed with the United States Bankruptcy Court for Northern
District of Ohio, Eastern Division on January 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 December 31, 1996 (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: February 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
December 31, 1996
</TABLE>
-4-
<PAGE>
EXHIBIT 99.1
TRANSMITTAL OF FINANCIAL REPORTS AND
CERTIFICATION OF COMPLIANCE WITH
UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR
THE PERIOD ENDED: 12-31-96
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: 1/20/97 /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: 12-31-96
<TABLE>
<CAPTION>
Total
Current Month Since Filing
<S> <C> <C>
Total Revenue/Sales $ 188,641 $ 448,030
Cost of Sales 188,641 448,638
--------- -----------
Gross Profit -- (608)
========= ===========
EXPENSES:
--------
Officer Compensation 42,474 143,423
Salary Expenses other Employees 30,075 124,994
Employee Benefits & Pensions -- --
Payroll Taxes 3,457 11,244
Other Taxes 9,200 27,600
Rent and Lease Expense -- --
Interest Expense 325,759 986,875
Insurance 41,614 130,941
Automobile and Truck Expense -- --
Utilities (gas, electric, phone) 16,058 50,807
Depreciation -- --
Travel and Entertainment -- 958
Repairs and Maintenance, alarm 7,028 16,616
Advertising -- --
Supplies, Office Expenses, etc. 7,499 8,964
Other: Directors & Trustee 11,483 22,028
Other: Misc. Fees 4,029 6,732
TOTAL EXPENSES: 498,676 1,531,182
--------- -----------
NET OPERATING PROFIT/(LOSS) $(498,676) $(1,531,790)
========= ===========
Add: Non-Operating Income:
Interest Income
Other Income 156,327 442,086
Less: Non-Operating Expenses:
Professional Fees
Other 41,991 125,821
--------- -----------
NET INCOME / (LOSS) $(384,340) $(1,215,525)
========= ===========
</TABLE>
<PAGE>
BALANCE SHEET *
-------------
Debtor: Fretter Inc. Case No: 96-15177
Month Ending: 12-31-96
<TABLE>
<CAPTION>
ASSETS: Current Month Prior Month At Filing
<S> <C> <C> <C>
Cash: 57,249 75,255 89,252
Inventory: 421,164 523,199 1,307,487
Accounts Receivables: 4,762,288 5,200,709 1,102,281
Insider Receivables ** 41,298,703 40,199,153 35,674,942
Land and Buildings: 49,357,008 49,357,008 55,562,318
Furniture, Fixtures & Equip: 272,634 307,680 576,118
Accumulated Depreciation: (10,954,954) (10,858,254) (11,923,676)
Other: Prepaids & misc. 357,278 508,842 768,378
Other: Utility deposits 57,161 57,161 0
----------- ----------- -----------
TOTAL ASSETS: 85,628,531 85,370,753 83,157,100
=========== =========== ===========
LIABILITIES:
Postpetition Liabilities:
Accounts Payable: 9,416 16,761 0
Wages and Salaries: 52,464 54,345 0
Taxes Payable: 97,723 69,464 (9,211)
Other: 1,028,921 687,686 0
----------- ----------- -----------
TOTAL Postpetition Liab. 1,188,524 828,256 (9,211)
=========== =========== ===========
Secured Liabilities:
Subject to Postpetition
Collateral or Financing Order 29,002,401 29,002,401 29,002,401
All other Secured Liab. 6,430,777 6,926,150 7,382,657
----------- ----------- -----------
TOTAL Secured Liabilities: 35,433,178 35,928,551 36,385,058
=========== =========== ===========
Prepetition Liabilities:
Taxes & Other Priority Liab. 58,858 58,858 58,858
Unsecured Liabilities 9,641,432 9,641,432 9,641,432
Other: Accrued Liabilities 8,258,148 8,534,933 7,853,863
----------- ----------- -----------
TOTAL Prepetition Liab. 17,958,438 18,235,223 17,554,153
=========== =========== ===========
Redeemable Prfd. Stock 48,265,040 48,265,040 44,559,316
Equity:
Owners Capital: 1,746,636 1,746,636 1,746,636
Retained Earnings-Pre Pet. (17,747,760) (18,801,768) (17,078,852)
Retained Earnings-Post Pet. (1,215,525) (831,185) --
----------- ----------- -----------
TOTAL Equity: (17,216,649) (17,886,317) 15,332,216)
=========== =========== ===========
TOTAL LIABILITIES
AND EQUITY: 85,628,531 85,370,753 83,157,100
=========== =========== ===========
</TABLE>
________________________________
* Preliminary estimate
** Includes contingent receivable from Silo, Inc. collectibility
indeterminate
<PAGE>
SUMMARY OF OPERATIONS
---------------------
Period Ended: 12-31-96
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 14,478 14,478 0
State: 4,319 3,338 7,657 0
Local: 0 0 0 0
FICA Withheld: 0 3,381 3,381 0
Employers FICA: 0 3,381 3,381 0
Unemployment Tax:
Federal: (8) 4 -- (4)
State: 153 72 -- 225
Sales, Use & Excise Taxes: 0 0 -- 0
Property Taxes: 65,000 32,500 -- 97,500
Workers' Compensation -- -- -- --
Other: 401(k) -- 14,440 14,440 0
------ ------ ------ ------
TOTALS: 69,464 71,594 43,337 97,721
====== ====== ====== ======
</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: 12-1-96 To: 12-31-96
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>
A. Beginning Balance: 65,681.03 -- 4,370.92 5,202.80 --
---------- --------- ---------- ---------- ----------
B. Receipts. Attach
separate schedule: 184,015.18 30,346.27 29,960.82 11.86 377,649.79
---------- --------- ---------- ---------- ----------
C. Balance Available
(A + B): 249,696.21 30,346.27 34,331.74 5,214.66 --
---------- --------- ---------- ---------- ----------
D. Less Disbursements
Attach separate
schedule 193,787.61 30,350.59 34,201.24 4,000.00 377,649.79
---------- --------- ---------- ---------- ----------
E. ENDING BALANCE
(C-D) 55,908.60 (4.32) 130.50 1,214.66 --
========== ========= ========== ========== ==========
(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: 1-17-97 /s/ J. Michael McLean
-----------------------
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
________ 13,542
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 December 1996 Cash Receipts
(Account Number 4707-38120-0)
2. Schedule of Michigan National Bank December 1996 Cash Disbursements
(Account Number 4707-38120-0)
3. Michigan National Bank Statement of Account for the Period December 1, 1996
to December 31, 1996 (Account Number 4707-38120-0)
4. Michigan National Bank Statement of Account for the Period December 1, 1996
to December 31, 1996 (Account Number 4707-38024-4)
5. Schedule of Michigan National Bank Payroll Account December 1996 Cash
Receipts and Disbursements (Account Number 4707-38024-4)
6. Schedules of Michigan National Bank Tax Account December 1996 Cash Receipts
and Disbursements (Account Number 4707-38128-3)
7. Michigan National Bank Statement of Account for the Period December 1, 1996
to December 31, 1996 (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 November 30, 1996 through
December 31, 1996 (Account Number 229377)
10. Schedules of Bankers Trust Cash Receipts and Disbursements
