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Exhibit 99.2
UNITED STATES BANKRUPTCY COURT
MIDDLE DISTRICT OF TENNESSEE
In re: Case No.: 399-02649 THROUGH 399-02680
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SERVICE MERCHANDISE COMPANY, INC.
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Judge: PAINE
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Chapter 11
Debtor(s)
MONTHLY OPERATING REPORT FOR PERIOD ENDING January 28, 2001
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COMES NOW, SERVICE MERCHANDISE COMPANY, INC.
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Debtor-In-Possession, and hereby submits its Preliminary Monthly Operating
Report for the period commencing January 1, 2001 and ending January 28, 2001
as shown by the report and exhibits consisting of 7 pages and containing the
following as indicated:
[X] Partial Monthly Reporting Questionnaire Available
at February 19, 2000-(Attachment 1)
[ ] Comparative Balance Sheets (Forms OPR-1 & OPR-2)
N/A Summary of Accounts Receivable (Form OPR-3)
[ ] Schedule of Postpetition Liabilities (Form OPR-4)
[ ] Statement of Income (Loss) (Form OPR-5)
I declare under penalty of perjury that this report and all the attachments
are true and correct to the best of my knowledge and belief. This report is
based on preliminary unaudited results, and includes those reports agreed
upon as appropriate at this time between the Debtor and the U.S. Trustee. The
Debtor and the U.S. Trustee have also agreed that the Debtor will file the
remianing reports and forms by March 5, 2001. I also hereby certify that the
original Monthly Operating Report was filed with the Bankruptcy Court Clerk
and a copy delivered to the U.S. Trustee.
Date: 2/19/01 DEBTOR - IN - POSSESSION
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By: /s/ KENNETH A. CONWAY
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Name and Title: KENNETH A. CONWAY, VICE PRESIDENT
AND CONTROLLER
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Address: 7100 SERVICE MERCHANDISE DRIVE
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BRENTWOOD, TENNESSEE 37027
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Telephone No: (615) 660-3340
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Note: Report subject to further verification and account reconciliation
procedures
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CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: JANUARY 1, 2001 THROUGH JANUARY 28, 2001
1. Payroll
WAGES TAXES
OFFICERS TITLE GROSS NET DUE PAID
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SAM CUSANO CHIEF EXECUTIVE OFFICER $ 62,876.20 $ 29,862.37 $4,987.23 $ 23,716.18
C. STEVEN MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER,
GENERAL COUNSEL AND SECRETARY $ 34,542.58 $ 19,799.49 $2,425.66 $ 9,893.83
CHARLES K. SEPTER PRESIDENT AND CHIEF OPERATING OFFICER $1,735,001.50 $1,212,925.60 $ -- $521,214.43
ROBERT J. PINDRED VICE PRESIDENT AND TREASURER $ 14,469.00 $ 9,719.97 $ 730.73 $ 2,906.65
JOE M. ELLIOTT VICE PRESIDENT, PROPERTY ADMINISTRATION $ 14,642.40 $ 8,837.04 $ 816.11 $ 3,145.85
KARREN PRASIFKA ASSISTANT GENERAL COUNSEL VICE PRESIDENT $ 18,368.55 $ 11,284.74 $1,390.30 $ 5,504.36
KENNETH A. CONWAY VICE PRESIDENT AND CONTROLLER $ 15,467.15 $ 10,442.27 $ 776.27 $ 3,068.76
ERIC A. KOVATS SENIOR VICE PRESIDENT, STORES $ 27,364.68 $ 16,244.84 $1,756.28 $ 7,201.46
ROSE C. SEPTER SENIOR VICE PRESIDENT, JEWELRY MERCHANDISING $ 834,904.66 $ 581,654.69 $ -- $252,816.01
JERRY E. FOREMAN SENIOR VICE PRESIDENT, MERCHANDISING $ 32,202.03 $ 18,478.01 $2,246.97 $ 9,134.40
The following associates received a payment for term vacation and severance
included in the gross amount above:
CHARLES K. SEPTER $ 43,550.51 Vacation
$1,672,000.56 Severance
ROSE C. SEPTER $ 8,517.99 Vacation
$ 240,838.21 Severance
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CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: January 1, 2001 THROUGH January 28, 2001
2. INSURANCE
COVERAGE POLICY EXPIRATION PREMIUM DATE COVERAGE
TYPE NAME OF CARRIER AMOUNT NUMBER DATE AMOUNT PAID THROUGH
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Property Fireman's Fund Insurance Co $5 Million 01MXI97600751 12/31/01 $685,000 12/31/01
Royal $5 Million RHD314289 12/31/01 $90,250 12/31/01
Westchester Fire $15 Million 1XA394310 12/31/01 $64,125 12/31/01
Allianz Insurance Co $12 Million TBD 12/31/01 $26,520 12/31/01
TIG Insurance Co $13 Million XPT38844629 12/31/01 $28,730 12/31/01
Westchester Fire $20 Million 1XA394311 12/31/01 $13,500 12/31/01
Allianz Insurance Co $30 Million TBD 12/31/01 $19,125 12/31/01
Allianz Insurance Co $25 Million TBD 12/31/01 $8,500 12/31/01
Boiler & Machinery Hartford Steam Boiler $10 Million TBD 12/31/01 $14,280 12/31/01
Transit Fireman's Fund Insurance Co $1 Million TBD 12/31/01 $13,091 12/31/01
Ocean Cargo Fireman's Fund Insurance Co $10 Million TBD 12/31/01 $40,000 12/31/01
Special Crime Reliance Insurance Co $25 Million NFK1951937 05/01/02 $13,458 05/01/02
Crime National Union Fire Ins Co $10 Million 858-0797 03/01/01 $56,505 03/01/01
Fiduciary National Union Fire Ins Co $10 Million 267-81-30 03/01/01 $19,140 03/01/01
Employment Practices
Liability Chubb Insurance Co $10 Million 81278901A 03/01/01 $130,845 03/01/01
Royal Insurance Co $10 Million PSF000010 03/01/01 $56,364 03/01/01
Directors & Officers Continental Insurance Co $10 Million 300714943 03/01/01 $453,500 03/01/01
Chubb Insurance Co $10 Million 81278902-A 03/01/01 $266,666 03/01/01
Royal Insurance Co $10 Million PSF000009 03/01/01 $133,000 03/01/01
Umbrella Federal Insurance Co $50 Million BXO52805120 12/31/01 $88,250 12/31/01
Excess Liability American Guarantee & Liab $50 Million AEC287610703 12/31/01 $30,000 12/31/01
International Ace American Ins Co $1 Million PHF051491 12/31/01 $2,500 12/31/01
Punitive Damages Chubb Atlantic Indemnity $50 Million MCPD201058 12/31/01 $40,000 12/31/01
Punitive Damages - Excess Zurich International Bermuda $50 Million ZICBB-091 PD 12/31/01 $5,000 12/31/01
General Liability Ace American Ins Co $5 Million XSLG20577009 12/31/01 $44,320 01/31/01
Workers' Compensation Pacific Employers Ins Co Statutory WLRC43024516 12/31/01 $27,325 02/28/01
WC Excess Ace American Ins Co Statutory XWC014026 12/31/01 $12,108 12/31/01
WC Contractual Indemnity Illinois Union Insurance Co Statutory CTPG20577344 12/31/01 $20,500 12/31/01
Auto Pacific Employers Ins Co $1 Million ISAH07968358 12/31/01 $33,518 12/31/01
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CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: JANUARY 1, 2001 THROUGH JANUARY 28, 2001
3. BANK ACCOUNTS
TOTAL CASH AND CASH EQUIVALENTS
CASH IN STORES AND HOME OFFICE
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HOME OFFICE $ 6,250
RETAIL SAFE FUNDS 1,966,611
CORPORATE ACCOUNTS 2,709,132
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STORE DEPOSITORY ACCOUNTS
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FIRST TENNESSEE 483,742
KEY NATIONAL BANK 517,307
BANK OF BOSTON 174,157
BANK OF BOSTON CONNECTICUT 97,819
FIRST UNION 1,734,799
BANK ONE LOUISIANA 449,204
ABN-AMRO BANK 329,328
COMERICA BANK 136,654
AM SOUTH 430,273
BANK OF AMERICA 145,332
BANK OF OKLAHOMA 180,901
CHASE BANK OF TEXAS 429,164
SINGLE STORE DEPOSITORY ACCOUNTS 535,032
WELLS FARGO BANK 120,494
BANK ONE, IN 172,713
PNC BANK 414,739
OAK BROOK BANK 896,199
CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) 7,326,601
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OTHER DEPOSITORY ACCOUNTS
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SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC 47,064
OTHER CASH ACCOUNTS 122,944
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TOTAL CASH PER GENERAL LEDGER $19,426,459
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CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: JANUARY 1, 2001 THROUGH JANUARY 28, 2001
RECEIPTS AND DISBURSEMENTS
(Dollars in Thousands)
Actual Actual Actual Actual Total
Monday 01/01/01 01/08/01 01/15/01 01/22/01 01/01/01
Sunday 01/07/01 01/14/01 01/21/01 01/28/01 01/28/01
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Receipts:
Sales receipts $ 13,438 $ 10,834 $ 13,354 $ 15,392 $ 53,018
Miscellaneous receipts -- 3,496 -- 1,136 4,632
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Total available collections 13,438 14,330 13,354 16,528 57,650
Disbursements:
Merchandise disbursements 12,216 11,310 5,111 10,781 39,418
Non-merchandise disbursements 13,759 24,785 17,946 13,167 69,657
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Total disbursements 25,975 36,095 23,057 23,948 109,075
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Net receipts/(disbursements) $(12,537) $(21,765) $ (9,703) $ (7,420) $ (51,425)
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CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: January 1, 2001 THROUGH January 28, 2001
4. Payments to Professionals January 1, 2001 through January 28, 2001
Vendor # Vendor Name Check Amt. Check Date Check #
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53703 Barron and Stadfeld $ 4,666.85 01/03/01 50029409
63010 Rives & Peterson $ 1,052.39 01/03/01 50029411
67017 Barkley & Thompson $ 1,460.91 01/03/01 50029413
71403 Seyfarth, Shaw, Fairweather & Geraldson $ 10,409.71 01/03/01 50029414
84573 Buchanan & Ingersoll $ 2,502.80 01/03/01 50029416
93547 D'Assaro and Hall $ 1,008.00 01/03/01 50029420
97660 Schnader, Harrison, Segal & Lewis $ 165.00 01/04/01 50029536
94414 Keen Realty Consultants, Inc. $ 3,169.27 01/11/01 50030168
57117 Deloitte & Touche $ 34,983.99 01/22/01 50031102
101993 Rothschild, Inc. $110,388.80 01/24/01 B0023887
63078 Weil, Gotshal & Manges, LLP $ 424.73 01/24/01 B0023888
99444 Sitrick & Company, Inc. $ 16,246.14 01/24/01 B0023890
95911 Kelly, Lucas & Pacifico, LLP $ 6,650.00 01/26/01 70000042
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CHAPTER 11
MONTHLY OPERATING REPORT
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: JANUARY 01, 2000 THROUGH JANUARY 28, 2000
SUMMARY OF ACCOUNTS RECEIVABLE
Month Ended: 01/28/01
FORM OPR-3 NOT APPLICABLE
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