<PAGE>
As filed with the Securities and Exchange Commission on June 4, 1998
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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) May 20, 1998
FRETTER, INC.
(Exact Name of Registrant as Specified in Charter)
Michigan 0-14611 38-1557359
(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
12501 Grand River
Brighton, Michigan 48116
(Address of Principal Executive Offices) (Zip Code)
(810) 220-5000
(Registrant's telephone number, including area code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
<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 April 30,
1998 that the Company filed with the United States Bankruptcy Court for Northern
District of Ohio, Eastern Division on May 20, 1998 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 April 30, 1998 (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: June 4, 1998
-3-
<PAGE>
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
Exhibit
Number Document Description
- --------- --------------------------------------------
<S> <C>
99.1 Monthly Operating Reports of Debtors and
Debtors in Possession for the Period Ended
April 30, 1998
=======================================================
</TABLE>
-4-
<PAGE>
EXHIBIT 99.1
TRANSMITTAL OF FINANCIAL REPORTS AND
CERTIFICATION OF COMPLIANCE WITH
UNITED STATES TRUSTEE OPERATING REQUIREMENTS FOR
THE PERIOD ENDED: 4-30-98
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: 5/19/98 /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: 4/30/98
<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 8,429 317,757
Salary Expenses other Employees 9,560 397,697
Court-Ordered Stay Bonus 3,120 216,041
Employee Benefits & Pensions 0
Payroll Taxes 2,466 75,679
Other Taxes 87,574
Rent and Lease Expense 10,898 87,398
Interest Expense 40,631 4,338,028
Insurance 10,681 585,807
Automobile and Truck Expense 0
Utilities (gas, electric, phone, alarms) 0 167,999
Computer Service Bureau 5,366 25,366
Travel and Entertainment 1,187 17,987
Repairs and Maintenance 5,853 300,078
Advertising 0
Supplies, Office Expenses, etc. 37,956 355,870
Other: Specify Director & Trustee Fees 6,566 142,333
Other: Other Fees 3,500 6,595
---------- -----------
TOTAL EXPENSES: 146,213 7,122,209
---------- -----------
NET OPERATING PROFIT/(LOSS) (146,213) (7,094,772)
========== ===========
Add: Non-Operating Income:
Interest Income 2,576 36,381
Gain/Loss on Sale of Real Estate 312,561 8,205,275
Other Income 25,813 1,936,342
---------- -----------
TOTAL 340,950 10,177,998
---------- -----------
Less: Non-Operating Expenses:
Professional Fees 204,750 3,647,787
Other 7,550 637,556
---------- -----------
NET INCOME / (LOSS) (17,563) (1,202,117)
========== ===========
</TABLE>
<PAGE>
BALANCE SHEET *
-------------
Debtor: Fretter, Inc. Case No: 96-15177
Month Ending: 4/30/98
<TABLE>
<CAPTION>
ASSETS: Current Month Prior Month At Filing
<S> <C> <C> <C>
Cash: 1,046,634 987,405 89,252
Inventory: 791,999
Accounts Receivable: ** 34,475,770 34,475,837 35,930,804
Insider Receivables 3,553,787 7,414,781 7,424,547
Land and Buildings: 9,621,311 13,686,742 49,365,801
Furniture, Fixtures & Equip: 418,000
Accumulated Depreciation (1,569,597) (2,655,919) (10,623,681)
Other: Prepaids & misc. 1,922,547 1,054,834 807,689
Other: Utility deposits 10,390 10,531
----------- ----------- -----------
TOTAL ASSETS: 49,060,842 54,974,211 84,204,411
=========== =========== ===========
LIABILITIES:
Postpetition Liabilities:
Accounts Payable: 70,451 87,316
Wages and Salaries: 8,680 8,879
Taxes Payable 81,169 89,172
Other: Prof. fees, interest, etc. 3,110,647 2,965,198 1,390
----------- ----------- -----------
TOTAL Postpetition Liab.: 3,270,947 3,150,565 1,390
=========== =========== ===========
Secured Liabilities:
Subject to Postpetition
Collateral or Financing Order 0 4,488,035 29,002,401
All Other Secured Liab. 1,521,701 2,718,151 7,371,875
----------- ----------- -----------
TOTAL Secured Liabilities: 1,521,701 7,206,186 36,374,276
=========== =========== ===========
Prepetition Liabilities:
Taxes & Other Priority Liab. 755,152 885,638 1,132,770
Unsecured Liabilities 6,305,008 6,458,204 6,849,397
Other: Accrued Liabilities 4,499,930 4,547,951 5,449,917
----------- ----------- -----------
TOTAL Prepetition Liab. 11,560,090 11,891,793 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. (16,047,270) (16,047,270) (15,560,830)
Retained Earnings-Post Pet. (1,202,117) (1,184,554) 0
----------- ----------- -----------
TOTAL Equity: (15,556,936) (15,539,373) (13,868,379)
=========== =========== ===========
TOTAL LIABILITIES
AND EQUITY: 49,060,842 54,974,211 84,204,411
=========== =========== ===========
</TABLE>
______________________________
* Preliminary Estimate
** Includes contingent receivable from Silo, Inc.
Collectibility indeterminate
<PAGE>
SUMMARY OF OPERATIONS
---------------------
Period Ended: 4/30/98
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 3,877 3,877 0
State: 698 931 698 931
Local:
FICA Withheld: 0 1,699 1,699 0
Employers FICA: 0 1,699 1,699 0
Unemployment Tax:
Federal: 297 74 297 74
State: 3,217 693 3,217 693
Sales, Use & Excise Taxes 0 0
Property Taxes 84,960 3,578 9,067 79,471
Workers' Compensation
Other:
------ ------ ------ ------
TOTALS 89,172 12,551 20,554 81,169
====== ====== ====== ======
</TABLE>
AGING OF ACCOUNTS RECEIVABLE
AND POSTPETITION ACCOUNTS PAYABLE
<TABLE>
<CAPTION>
Age in Days 0-30 30-60 Over 60
<S> <C> <C> <C>
PostPetition
Accounts Payable 70,451
------ ------ ----------
Accounts Receivable 38,029,557
------ ------ ==========
</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>
AGING
POST-PETITION PAYABLES OVER 30 DAYS
4/30/98
CITY OF STERLING HEIGHTS 19,070 TO BE PAID OUT OF CLOSING PROCEEDS
POST-PETITION SERVICE
CONTRACT REPAIR CLAIM 51,381 PAYMENT TIMING WILL BE PART OF FINAL PLAN
------
70,451
======
<PAGE>
MONTHLY CASH STATEMENT
Debtor: Fretter, Inc. Statement for the period:
Case #: 96-15177 From: 4-1-98 To: 4-30-98
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: 195,715.48 9,547.40 10,453.59 0.00 0.00
---------- --------- --------- ---------- ----------
B. Receipts. Attach
Separate Schedule: 230,527.15 13,642.85 6,946.43 0.00 717.25
---------- --------- --------- ---------- ----------
C. Balance Available
(A + B): 426,242.63 23,190.25 17,400.02 0.00 717.25
---------- --------- --------- ---------- ----------
D. Less Disbursements
Attach separate
schedule: 166,616.80 16,348.11 11,486.90 0.00 717.25
---------- --------- --------- ---------- ----------
E. Ending Balance
(C-D) 259,625.83 6,842.14 5,913.12 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: 4-1-98 To: 4-30-98
------------- ------------- -----------
Cash Activity Analysis (Cash Basis Only):
<TABLE>
<CAPTION>
General Tax
Savings Savings
Acct. Acct.
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
A. Beginning Balance: 771,688.78 0.00 0.00
---------- ---------- ---------- ---------- ----------
B. Receipts. Attach Separate Schedule: 2,576.14 0.00
---------- ---------- ---------- ---------- ----------
C. Balance Available (A+B): 774,264.92 0.00 0.00 0.00 0.00
---------- ---------- ---------- ---------- ----------
D. Less Disbursements Attach separate
schedule: 12.00 0.00
---------- ---------- ---------- ---------- ----------
E. Ending Balance (C-D): 774,252.92 0.00 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
<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 April 1998 Cash Receipts (Account
Number 4707-38120-0)
2. Schedules of Michigan National Bank April 1998 Cash Disbursements,
Account Reconciliation and Outstanding Check List (Account Number 4707-38120-0)
3. Michigan National Bank Statement of Account for the Period April 1, 1998
to April 30, 1998 (Account Number 4707-38120-0)
4. Michigan National Bank Statement of Account for the Period April 1, 1998
to April 30, 1998 (Account Number 4707-38024-4)
5. Schedules of Michigan National Bank Payroll Account April 1998 Cash
Receipts and Disbursements and Account Reconciliation (Account Number
4707-38024-4)
6. Schedules of Michigan National Bank Tax Account April 1998 Cash Receipts
and Disbursements and Account Reconciliation (Account Number 4707-38128-3)
7. Michigan National Bank Statement of Account for the Period April 1, 1998
to April 30, 1998 (Account Number 4707-38128-3)
8. Schedule of Bankers Trust April 1998 Cash Receipts
9. Schedules of Michigan National Bank General Savings Account April 1998
Cash Receipts and Disbursements (Account Number 4707-38293-5)
10. Michigan National Bank Statement of Account for the Period April 1, 1998
through April 30, 1998 (Account Number 4707-38293-5)
11. Schedule of Michigan National Bank Tax Savings Account April 1998 Cash
Receipts and Disbursements (Account Number 4707-38357-8)
12. Michigan National Bank Statement of Account for the Period April 1, 1998
to April 30, 1998 (Account Number 4707-38357-8)
