1
EXHIBIT 99
UNITED STATES BANKRUPTCY COURT
MIDDLE DISTRICT OF TENNESSEE
In re: Case No.: 399-02649 THROUGH 399-02680
---------------------------
SERVICE MERCHANDISE COMPANY, INC.
---------------------------------
Judge: PAINE
---------------------------
Chapter 11
Debtor(s)
MONTHLY OPERATING REPORT FOR PERIOD ENDING July 1, 2001
------------------
COMES NOW, SERVICE MERCHANDISE COMPANY, INC.
--------------------------------------------
Debtor-In-Possession, and hereby submits its Monthly Operating Report for the
period commencing May 28, 2001 and ending July 1, 2001 as
---------------- ----------------
shown by the report and exhibits consisting of 15 pages and
------
containing the following as indicated:
X Monthly Reporting Questionnaire (Attachment 1)
------
X Comparative Balance Sheets (Forms OPR-1 & OPR-2)
------
N/A Summary of Accounts Receivable (Form OPR-3)
------
X Schedule of Postpetition Liabilities (Form OPR-4)
------
X 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. 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: 7/23/01 DEBTOR - IN - POSSESSION
-----------
By: /s/ Kenneth A. Conway
------------------------------------------------
Name and Title: KENNETH A. CONWAY, VICE PRESIDENT AND CONTROLLER
------------------------------------------------
Address: 7100 SERVICE MERCHANDISE DRIVE
------------------------------------------------
BRENTWOOD, TENNESSEE 37027
------------------------------------------------
Telephone No: (615) 660-3340
------------------------------------------------
Note: Report subject to further verification and account reconciliation
procedures
Page 1
2
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: MAY 28, 2001 THROUGH JULY 1, 2001
1. Payroll
WAGES TAXES
OFFICERS TITLE GROSS NET DUE PAID
- ------------------------------------------------------------------------------------------------------------------------------------
S. CUSANO CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER $ 90,871.60 $ 59,566.53 $5,147.07 $ 25,644.80
JANE F. GILMARTIN PRESIDENT AND CHIEF MERCHANDISING OFFICER $ 362,500.00 $248,873.69 $3,350.71 $110,275.59
C. STEVEN MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER,
GENERAL COUNSEL AND SECRETARY $ 34,483.63 $ 23,257.92 $2,108.22 $ 8,791.94
MICHAEL E. HOGREFE SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER $ 29,672.58 $ 20,291.05 $1,744.62 $ 7,314.81
ERIC A. KOVATS SENIOR VICE PRESIDENT, STORES $ 27,288.93 $ 18,854.09 $1,479.15 $ 6,193.09
JERRY E. FOREMAN SENIOR VICE PRESIDENT, MERCHANDISING $1,121,813.02 $790,418.95 $ -- $331,234.11
KARREN M. PRASIFKA VICE PRESIDENT, ASSISTANT GENERAL COUNSEL $ 18,318.90 $ 12,469.30 $1,130.29 $ 4,569.81
JOE M. ELLIOTT VICE PRESIDENT, PROPERTY ADMINISTRATION $ 14,532.75 $ 9,892.60 $ 625.95 $ 2,426.65
KENNETH A. CONWAY VICE PRESIDENT AND CONTROLLER $ 16,390.25 $ 12,032.50 $ 627.53 $ 2,517.77
KIMBERLY B. SOUTHARD ASSISTANT VICE PRESIDENT, STRATEGIC PLANNING AND
ASSISTANT TREASURER $ 11,076.20 $ 6,864.53 $ 634.99 $ 2,559.33
The following associate received retroactive pay, effective 03/17/01, that is
included in the amounts above.
S. CUSANO $ 24,370.00
The following associate received a payment, in accordance with the terms of her
employment agreement, that is included in the amounts above.
JANE F. GILMARTIN $ 312,500.00
The following associate received severance, a stay bonus and terminated vacation
pay that is included the amounts above.
JERRY E. FOREMAN $1,032,200.00 Severance
$ 60,937.50 Stay Bonus
$ 9,154.69 Terminated Vacation
Page 2
3
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: MAY 28, 2001 THROUGH JULY 1, 2001
2. INSURANCE
COVERAGE POLICY EXPIRATION PREMIUM DATE COVERAGE
TYPE NAME OF CARRIER AMOUNT NUMBER DATE AMOUNT PAID THROUGH
- -----------------------------------------------------------------------------------------------------------------------------------
Property Fireman's Fund Insurance Co $5 Million 01MXI97600751 12/31/01 $685,000 12/31/01
Royal Indemnity Co. $5 Million RHD317182 12/31/01 $90,250 12/31/01
Westchester Fire $15 Million 1XA394430-0 12/31/01 $64,125 12/31/01
Allianz Insurance Co $12 Million CLP1036568 12/31/01 $26,583 12/31/01
TIG Insurance Co $13 Million XPT38844629 12/31/01 $28,730 12/31/01
Westchester Fire $20 Million 1XA394429-0 12/31/01 $13,500 12/31/01
Allianz Insurance Co $30 Million CLP1036568 12/31/01 $20,250 12/31/01
Allianz Insurance Co $25 Million CLP1036568 12/31/01 $8,500 12/31/01
Boiler & Machinery Hartford Steam Boiler $10 Million 4914359 12/31/01 $9,934 12/31/01
Transit Fireman's Fund Insurance Co $1 Million CCIMG72820 12/31/01 $10,000 12/31/01
Ocean Cargo Fireman's Fund Insurance Co $10 Million CR37211 12/31/01 $40,000 12/31/01
General Liability Ace American Ins Co $5 Million XSLG20577009 12/31/01 $212,279 12/31/01
Workers' Compensation Pacific Employers Ins Co Statutory WLRC43024516 12/31/01 $136,566 12/31/01
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
Umbrella Ohio Casualty Group $50 Million BXO52805120 12/31/01 $88,250 12/31/01
Excess Liability Zurich American of Illinois $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 Magna Carta Ins. Ltd. $50 Million MCPD201058 12/31/01 $40,000 12/31/01
Punitive Damages - Excess Zurich Ins. Co Bermuda Branch $50 Million ZICBB-091 PD 12/31/01 $5,000 12/31/01
Directors & Officers Continental Insurance Co $10 Million 300714943 03/01/02 $200,000 03/01/02
Federal Insurance Co $10 Million 81278902-A 03/01/02 $190,000 03/01/02
Royal Insurance Co $10 Million PSF000009 03/01/02 $175,000 03/01/02
Greenwich Ins. Co. $10 Million ELU82217-01 03/01/02 $198,949 03/01/02
Zurich-American Ins. Co. $10 Million DOC3746468-00 03/01/02 $146,704 03/01/02
Kemper Insurance Co $10 Million 3DY00200100 03/01/02 $99,110 03/01/02
Crime National Union Fire Ins Co $10 Million 8726439 03/01/02 $53,833 03/01/02
Fiduciary National Union Fire Ins Co $10 Million 8726812 03/01/02 $25,839 03/01/02
Employment Practices
Liability Chubb Insurance Co $5 Million 81278901A 03/01/02 $100,000 03/01/02
National Union Fire Ins Co $5 Million 8727499 03/01/02 $70,000 03/01/02
Royal Insurance Co $10 Million PSF000010 03/01/02 $85,000 03/01/02
Special Crime Reliance Insurance Co $25 Million NFK1951937 05/01/02 $13,458 05/01/02
Page 3
4
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: MAY 28, 2001 THROUGH JULY 1, 2001
3. BANK ACCOUNTS
TOTAL CASH AND CASH EQUIVALENTS
CASH IN STORES AND HOME OFFICE
- ------------------------------
HOME OFFICE $ 5,950
RETAIL SAFE FUNDS 1,760,255
CORPORATE ACCOUNTS 3,394,961
- ------------------
STORE DEPOSITORY ACCOUNTS
- -------------------------
FIRST TENNESSEE 484,836
KEY NATIONAL BANK 278,669
BANK OF BOSTON 419,660
BANK OF BOSTON CONNECTICUT -
FIRST UNION 2,313,952
BANK ONE LOUISIANA 259,116
ABN - AMRO BANK 120,834
COMERICA BANK 184,672
AM SOUTH 271,249
BANK OF AMERICA 255,222
BANK OF OKLAHOMA 123,689
CHASE BANK OF TEXAS 653,877
SINGLE STORE DEPOSITORY ACCOUNTS 250,375
WELLS FARGO BANK 45,600
BANK ONE, IN 63,945
PNC BANK 439,790
OAK BROOK BANK 508,680
CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) 7,560,378
- ------------------------------------------------------------------
OTHER DEPOSITORY ACCOUNTS
- -------------------------
SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC. 69,726
OTHER CASH ACCOUNTS 69,714
------------
TOTAL CASH PER GENERAL LEDGER $ 19,535,150
============
Page 4
5
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: MAY 28, 2001 THROUGH JULY 1, 2001
RECEIPTS AND DISBURSEMENTS
(DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL TOTAL
Monday 05/28/01 06/04/01 06/11/01 06/18/01 06/25/01 05/28/01
Sunday 06/03/01 06/10/01 06/17/01 06/24/01 07/01/01 07/01/01
------ -------- -------- -------- -------- -------- --------
Receipts:
Sales receipts $18,303 $19,662 $20,132 $22,366 $19,265 $ 99,728
Miscellaneous receipts -- 2,704 1,011 -- -- 3,715
------- ------- ------- ------- ------- --------
Total available collections 18,303 22,366 21,143 22,366 19,265 103,443
Disbursements:
Merchandise disbursements 6,583 8,410 8,603 7,718 6,072 $ 37,386
Non-merchandise disbursements 7,767 12,911 9,804 9,956 11,672 52,110
------- ------- ------- ------- ------- --------
Total disbursements 14,350 21,321 18,407 17,674 17,744 89,496
------- ------- ------- ------- ------- --------
Net receipts/(disbursements) $ 3,953 $ 1,045 $ 2,736 $ 4,692 $ 1,521 $ 13,947
======= ======= ======= ======= ======= ========
Page 5
6
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: MAY 28, 2001 THROUGH JULY 1, 2001
ROLLING REVISED CASH FLOW FORECAST
(DOLLARS IN THOUSANDS)
ACTUAL ACTUAL FORECAST FORECAST FORECAST
07/01/01 07/15/01 07/29/01 08/26/01 09/30/01
-------- -------- -------- -------- --------
Ending total revolver balance $194,844 $196,778 $189,707 $185,169 $201,817
Term loan 60,000 60,000 60,000 60,000 60,000
Standby letters of credit 24,188 24,032 24,491 24,335 24,179
Trade letters of credit 15,309 25,759 32,226 26,907 28,926
-------- -------- -------- -------- --------
Total extensions of credit 294,341 306,569 306,424 296,411 314,922
Borrowing base 415,070 417,644 398,025 387,039 422,840
-------- -------- -------- -------- --------
Availability $120,729 $111,075 $ 91,601 $ 90,628 $107,918
======== ======== ======== ======== ========
Page 6
7
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: MAY 28, 2001 THROUGH JULY 1, 2001
4. Payments to Professionals May 28, 2001 through July 1, 2001
VENDOR # VENDOR NAME CHECK AMT. CHECK DATE CHECK #
- ---------------------------------------------------------------------------------------------
57117 Deloitte & Touche $ 15,526.00 05/29/01 50043297
57117 Deloitte & Touche $ 18,000.00 05/30/01 50043402
101730 CBIZ Property Tax Solutions, Inc. $ 14,318.75 06/04/01 50043899
93547 D'Assaro and Hall $ 4,362.07 06/05/01 50043976
95913 Locke Reynolds, LLP $ 820.52 06/05/01 50043979
47653 Hoge, Fenton, Jones & Appel, Inc. $ 500.00 06/06/01 50044119
48779 Loss, Pavone & Orel $ 75.00 06/06/01 50044120
67017 Barkley & Thompson $ 3,552.90 06/06/01 50044121
71403 Seyfarth, Shaw, Fairweather & Geraldson $ 1,968.53 06/06/01 50044122
84573 Buchanan & Ingersoll, PC $ 175.85 06/06/01 50044124
84740 Taft, Stettinius & Hollister $ 113.03 06/06/01 50044125
95912 Kightlinger & Gray $ 85.70 06/06/01 50044127
99329 Aegis Property Tax Specialists $ 14,787.93 06/06/01 50044146
71403 Seyfarth, Shaw, Fairweather & Geraldson $ 1,160.07 06/07/01 50044243
96684 Sherbow & Mitchell, PC $ 300.00 06/07/01 50044245
99329 Aegis Property Tax Specialists $ 7,340.32 06/07/01 50044262
99329 Aegis Property Tax Specialists $ 5,804.69 06/07/01 50044263
95913 Locke Reynolds, LLP $ 1,275.78 06/11/01 50044500
101606 Service Real Estate Venture $ 4,735.57 06/15/01 B0025041
99459 Robert L. Berger & Associates $ 12,531.32 06/18/01 B0025067
99444 Sitrick & Company, Inc. $ 5,971.57 06/19/01 B0025069
71217 Bass, Berry & Sims $218,974.96 06/19/01 B0025071
57117 Deloitte & Touche $ 18,000.00 06/21/01 50045458
57117 Deloitte & Touche $ 11,033.00 06/25/01 50045817
98176 Price, Waterhouse, Coopers, LLC $118,050.00 06/25/01 50045825
86237 Brusniak, Clement, Harrison & McCool PC, Inc. $ 2,012.28 06/25/01 50045829
57117 Deloitte & Touche $ 8,099.69 06/26/01 50045886
101232 E & Y Capiral Advisors, LLC $ 76,075.00 06/28/01 B0025114
101993 Rothschild, Inc. $ 88,519.73 06/28/01 B0025115
99104 Jay Alix & Associates $ 61,184.44 06/28/01 B0025116
99391 Otterbourg, Steindler, Houston & Rosen, PC $ 91,946.09 06/28/01 B0025117
99454 Harwell, Howard, Hyne, Gabbert & Manner, PC $ 17,075.68 06/28/01 B0025118
101232 E & Y Capiral Advisors, LLC $ 90,509.00 06/28/01 B0025135
98378 Skadden, Arps, Slate, Meagher & Flom $356,459.00 06/29/01 B0025128
Page 7
8
FORM OPR-1 AND 2
SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(IN THOUSANDS)
JULY 01, MAY 27,
2001 2001
----------- -----------
ASSETS
Current Assets: $ 19,535 $ 29,355
Cash and cash equivalents 6,834 7,433
Accounts receivable 431,746 452,689
Inventories 12,889 14,052
----------- -----------
TOTAL CURRENT ASSETS 471,004 503,529
----------- -----------
PROPERTY AND EQUIPMENT
Owned assets, net of accumulated depreciation 353,893 356,654
Capitalized leases, net of accumulated amortization 11,193 11,402
----------- -----------
TOTAL PROPERTY AND EQUIPMENT 365,086 368,056
----------- -----------
Other assets and deferred charges 49,066 48,025
----------- -----------
TOTAL ASSETS $ 885,156 $ 919,610
=========== ===========
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY
Liabilities Not Subject To Compromise
Current Liabilities:
Notes payable to banks $ 194,844 $ 208,460
Accounts payable 31,001 33,678
Accrued expenses 123,531 126,965
State & local sales tax 7,886 8,126
Current maturities capitalized leases 97 96
----------- -----------
TOTAL CURRENT LIABILITIES 357,359 377,325
----------- -----------
Page 8
9
FORM OPR-1 AND 2
SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(IN THOUSANDS)
JULY 01, MAY 27,
2001 2001
----------- -----------
Long-Term Liabilities:
Long-term debt 60,000 60,000
Capitalized lease obligations 2,346 2,355
Liabilities Subject To Compromise:
Accrued restructuring costs 42,077 42,066
Capitalized lease obligations 20,584 20,855
Long-term debt 411,408 412,617
Accounts payable 198,712 198,061
Accrued expenses 73,147 72,589
----------- -----------
Total Liabilities Subject To Compromise 745,928 746,188
TOTAL LIABILITIES 1,165,633 1,185,868
----------- -----------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' (DEFICIT) EQUITY
Common stock 49,936 49,936
Additional paid-in-capital 5,881 5,881
Deferred compensation (158) (170)
Accumulated other comprehensive loss (2,545) (2,697)
Retained (deficit) earnings (333,591) (319,208)
----------- -----------
TOTAL SHAREHOLDERS' (DEFICIT) EQUITY (280,477) (266,258)
TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY $ 885,156 $ 919,610
=========== ===========
Page 9
10
CHAPTER 11
MONTHLY OPERATING REPORT
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: MAY 28, 2001 THROUGH JULY 1, 2001
SUMMARY OF ACCOUNTS RECEIVABLE
MONTH ENDED: JULY 1, 2001
FORM OPR-3 NOT APPLICABLE
Page 10
11
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: MAY 28, 2001 THROUGH JULY 1, 2001
SCHEDULE OF POST PETITION LIABILITIES-ACCOUNTS PAYABLE
MONTH ENDED: JULY 1, 2001
FORM OPR-4
TOTAL
--------
Trade Accounts Payable (Merchandise) $ 31,001
TOTAL
--------
Expense & other payables $ 123,531
Page 11
12
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: MAY 28, 2001 THROUGH JULY 1, 2001
SCHEDULE OF POST PETITION LIABILITIES
FORM OPR-4
(DOLLARS IN THOUSANDS)
DATE DATE TOTAL
TAXES PAYABLE INCURRED DUE DUE
Federal income tax ** Various Various $ 7,919
State income tax Various Various (558)
--------
SUBTOTAL $ 7,361
--------
Sales/use tax SUBTOTAL * Various Various $ 9,011
--------
Personal property tax * Various Various $ 2,546
Real estate taxes * Various Various 11,072
Inventory taxes * Various Various --
Gross receipts/bus licenses * Various Various 231
Franchise taxes * Various Various 442
--------
SUBTOTAL $ 14,291
--------
TOTAL TAXES PAYABLE $ 30,663
========
* liability included in accrued expenses on OPR-2
** tax reserve
Page 12
13
CHAPTER 11
MONTHLY OPERATING REPORT
MONTHLY REPORTING QUESTIONNAIRE
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: MAY 28, 2001 THROUGH JULY 1, 2001
SCHEDULE OF POST PETITION LIABILITIES
FORM OPR-4
(DOLLARS IN THOUSANDS)
DATE TOTAL DUE
INCURRED DATE DUE (7/01/01 BALANCE)
------------------------------------------
POST PETITION SECURED DEBT
Revolver borrowings 04/14/00 04/14/04 $ 194,844
Facility standby letters of credit 04/14/00 04/14/04 24,188
Facility trade letters of credit 04/14/00 04/14/04 18,272
Term loans 04/14/00 04/14/04 60,000
---------
TOTAL EXTENSIONS OF CREDIT $ 297,304
=========
ACCRUED INTEREST PAYABLE $ 1,163
=========
Page 13
14
FORM OPR 5
SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(IN THOUSANDS)
ACTIVITY ACTIVITY
MAY 28, 2001 MAY 30, 2000
THROUGH THROUGH
JULY 1, JULY 1,
2001 2001
-------- ---------
Net Sales $ 87,936 $ 156,660
Costs of merchandise sold and buying and occupancy expense 63,629 139,135
-------- ---------
Gross margin after cost of merchandise sold and buying and
occupancy expenses 24,307 17,525
Selling, General and Administrative Expenses:
Net Employment Expense 15,231 33,922
Net Advertising 5,710 8,335
Banking and Other Fees 1,302 2,324
Real Estate and Other Taxes 2,114 2,315
Supplies 795 1,179
Communication and Equipment 314 363
Travel 443 665
UCC and Other Services (108) 277
Legal and Professional 340 312
Sales and Shipping 288 79
Insurance 608 773
Miscellaneous (80) (58)
Credit Card Services (35) (54)
-------- ---------
Total Selling, General and Administrative Expenses 26,922 50,432
Other expense/(income), net (19) 156
Page 14
15
FORM OPR 5
SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(IN THOUSANDS)
ACTIVITY ACTIVITY
MAY 28, 2001 MAY 30, 2000
THROUGH THROUGH
JULY 1, JULY 1,
2001 2001
-------- ---------
Restructuring charge (credit) -- (838)
Depreciation and amortization 4,043 3,856
-------- ---------
Earnings (loss) before interest, reorganization items,
and income tax (6,639) (36,081)
Interest expense - debt 3,561 2,988
Interest expense - capitalized leases 260 281
-------- ---------
Earnings (loss) before reorganization items, and
income tax (10,460) (39,350)
Reorganization Items:
Legal and Professional 3,057 6,922
Miscellaneous 334 681
Loss (Gain) on Disposal of Assets 536 (275)
Close Store Charges -- --
-------- ---------
Total Reorganization Items 3,927 7,328
Earnings (loss) before income tax (14,387) (46,678)
Income tax benefit 4 --
Cumulative Effect of Change in Accounting
Principles -- --
-------- ---------
Net earnings (loss) $(14,383) $ (46,678)
======== =========
Page 15