EXHIBIT 99.2
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 February 24, 2002
-----------------
COMES NOW, SERVICE MERCHANDISE COMPANY, INC.
---------------------------------
Debtor-In-Possession, and hereby submits its Preliminary Monthly Operating
Report for the period commencing January 28, 2002 and ending February 24, 2002
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. On January 18, 2002,
the United States Bankruptcy Court for the Middle District of Tennessee,
Nashville Division (the "Bankruptcy Court") approved the request of Service
Merchandise Company, Inc. and its Subsidiaries (the "Company") to immediately
begin liquidating the inventory at all of its stores and to conduct store
closing sales on a final basis and to discontinue operations at the stores.
The financial statements and schedules related to the Company included herein
have not been prepared on a liquidation basis in accordance with generally
accepted accounting principles ("GAAP"). The information needed to prepare the
financial statements and schedules on a liquidation basis is not currently
available to management. Attempting to obtain such information necessary to
prepare the financial statements and schedules on a liquidation basis would
cause undue hardship and expense to the Company. Preparation of the financial
statements and schedules on a liquidation basis of accounting would result in
material adjustments to the financial statements and schedules. Consequently, no
representation is made regarding the sufficiency of the financial statements and
schedules. The Company cautions readers not to place undue reliance on the
financial statements and schedules contained herein.
This report includes those reports agreed upon as appropriate at this time
between the Debtor and the U.S. Trustee. 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: March 18, 2002 DEBTOR-IN-POSSESSION
----------------
By: /s/ Michael E. Hogrefe
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Name and Title: MICHAEL E. HOGREFE, SR. VP AND CHIEF FINANCIAL OFFICER
-------------------------------------------------------------------
Address: 7100 SERVICE MERCHANDISE DRIVE
-------------------------------------------------------------------
BRENTWOOD, TENNESSEE 37027
-------------------------------------------------------------------
Telephone No: (615) 660-3340
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Note: Report subject to further verification and account
reconciliation procedures
Page 1
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 28, 2002 THROUGH FEBRUARY 24, 2002
1. Payroll
WAGES TAXES
OFFICERS TITLE GROSS NET DUE PAID
- ---------------------------------------------------------------------------------------------------------------------------------
S. CUSANO CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE
OFFICER $2,479,014.38 $1,759,808.37 $5,043.76 $708,221.44
JANE F. GILMARTIN PRESIDENT AND CHIEF MERCHANDISING OFFICER $1,060,765.00 $ 755,093.16 $ -- $305,671.84
C. STEVEN MOORE SENIOR VICE PRESIDENT, CHIEF
ADMINISTRATIVE OFFICER, GENERAL COUNSEL
AND SECRETARY SENIOR $ 27,759.41 $ 16,292.08 $2,342.13 $ 7,184.77
MICHAEL E. HOGREFE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER $ 23,903.33 $ 14,191.91 $1,957.96 $ 6,053.80
KARREN M. PRASIFKA VICE PRESIDENT, ASSISTANT GENERAL COUNSEL $ 233,646.39 $ 162,448.83 $ -- $ 71,177.59
KENNETH A. CONWAY VICE PRESIDENT AND CONTROLLER $ 177,939.29 $ 123,138.60 $ -- $ 54,800.69
JOE M. ELLIOTT VICE PRESIDENT, PROPERTY ADMINISTRATION $ 11,648.13 $ 7,716.61 $ 790.85 $ 2,248.70
KIMBERLY B. SOUTHARD ASSISTANT VICE PRESIDENT, STRATEGIC
PLANNING AND ASSISTANT TREASURER $ 8,864.66 $ 5,496.84 $ 790.30 $ 2,350.70
</Table>
The following associates received payment for accrued vacation:
S. CUSANO $ 52,914.38
JANE F. GILMARTIN $ 20,765.00
KARREN M. PRASIFKA $ 9,415.58
KENNETH A. CONWAY $ 7,939.33
The following associates received pay for severance:
S. CUSANO $2,368,600.00
JANE F. GILMARTIN $1,040,000.00
KARREN M. PRASIFKA $ 220,000.04
KENNETH A. CONWAY $ 169,999.96
Note: The disclosure on page 1 is an integral part of these
consolidated financial statements and schedules.
Page 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: JANUARY 28, 2002 THROUGH FEBRUARY 24, 2002
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 01MXI9761300 12/31/02 $453,750 06/30/02
Royal Indemnity Co. $5 Million RHD317182 12/31/02 $ 60,000 06/30/02
Westchester Fire $15 Million WXA663479-0 12/31/02 $ 51,500 06/30/02
Commonwealth Ins Co $25 Million CLP 10333 12/31/02 $ 79,459 06/30/02
Boiler & Machinery Hartford Steam Boiler $10 Million FBP4914359 12/31/02 $ 20,248 12/31/02
Transit Fireman's Fund Insurance Co $1 Million OIMXI97600751 12/31/02 $ 10,000 12/31/02
General Liability Ace American Ins Co $5 Million XSLG2057804A 12/31/02 $250,000 12/31/02
Tenants Liability - AOS Pacific Employers Ins. Co. $5 Million HDOG20578129 12/31/02 Incl. In GL 12/31/02
Tenants Liability-First Union Pacific Employers Ins. Co. $5 Million HODG20578087 12/31/02 Incl. In GL 12/31/02
Workers' Compensation-AOS Pacific Employers Ins Co Statutory WLRC43124456 12/31/02 $201,195 12/31/02
WC Excess Ace American Ins Co Statutory XWC014136 12/31/02 $ 24,034 12/31/02
Workers' Compensation-DAS Pacific Employers Ins Co Statutory WLRC43124493 12/31/02 Incl. In Excess 12/31/02
WC Retro Pacific Employers Ins. Co. Statutory SCFC43031673 12/31/02 Incl. In Excess 12/31/02
WC Contractual Indemnity Illinois Union Insurance Co Statutory CTPG20577794 12/31/02 $ 15,750 12/31/02
Auto Pacific Employers Ins Co $1 Million ISAH07969661 12/31/02 $ 43,572 12/31/02
Umbrella Ohio Casualty Group $25 Million BX(02)O52805120 06/30/02 $ 52,006 06/30/02
Excess Liability American Guarantee & Lia. Ins. $50 Million AEC287610704 03/31/02 $ 12,500 03/31/02
Excess Liability Great American Assurance $25 Million EXC5752226 06/30/02 $ 18,600 06/30/02
International Ace American Ins Co $1 Million PHF051491 12/31/02 $ 2,500 12/31/02
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
</Table>
Note: The disclosure on page 1 is an integral part of these
consolidated financial statements and schedules.
Page 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: JANUARY 28, 2002 THROUGH FEBRUARY 24, 2002
3. BANK ACCOUNTS
TOTAL CASH AND CASH EQUIVALENTS
CASH IN STORES AND HOME OFFICE
HOME OFFICE $ 2,950
CORPORATE ACCOUNTS 9,145,874
CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) 4,707,975
OTHER DEPOSITORY ACCOUNTS
SERVICE MERCHANDISE - MUSCULAR DYSTROPHY ASSOC 92,808
OTHER CASH ACCOUNTS 97,827
-------------
INVESTMENTS
SHORT TERM INVESTMENTS 16,850,239
TOTAL CASH PER GENERAL LEDGER $ 30,897,673
=============
Note: The disclosure on page 1 is an integral part of these
consolidated financial statements and schedules.
Page 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: JANUARY 28, 2002 THROUGH FEBRUARY 24, 2002
RECEIPTS AND DISBURSEMENTS
(DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL ACTUAL TOTAL
Monday 01/28/02 02/04/02 02/11/02 02/18/02 01/28/02
Sunday 02/03/02 02/10/02 02/17/02 02/24/02 02/24/02
-------- -------- -------- -------- --------
Receipts:
Sales receipts $ -- $ -- $ -- $ -- $ --
Miscellaneous receipts 2,482 1,139 23,593 4,020 31,234
Expense reimbursements 7,150 9,032 13,930 8,483 38,595
------- ------- ------- ------- -------
Total available collections 9,632 10,171 37,523 12,503 69,829
Disbursements:
Merchandise disbursements 802 52 37 478 1,369
Non-merchandise disbursements 13,486 13,018 10,826 15,174 52,504
------- ------- ------- ------- -------
Total disbursements 14,288 13,070 10,863 15,652 53,873
------- ------- ------- ------- -------
Net receipts/(disbursements) $(4,656) $(2,899) $26,660 $(3,149) $15,956
======= ======= ======= ======= =======
Note: The disclosure on page 1 is an integral part of these
consolidated financial statements and schedules.
Page 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: JANUARY 28, 2002 THROUGH FEBRUARY 24, 2002
ROLLING REVISED CASH FLOW FORECAST
(DOLLARS IN THOUSANDS)
Actual Actual
01/27/02 02/24/02
-------- --------
Ending total revolver balance $ -- $ --
Term loan -- --
Standby letters of credit 20,571 20,141
Trade letters of credit 11,948 9,610
-------- --------
Total extensions of credit 32,519 29,751
Borrowing base 118,250 122,940
-------- --------
Availability $ 85,731 $ 93,189
======== ========
Note: The disclosure on page 1 is an integral part of these
consolidated financial statements and schedules.
Page 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: JANUARY 28, 2002 THROUGH FEBRUARY 24, 2002
4. Payments to Professionals January 28, 2002 through February 24, 2002
Vendor # Vendor Name Check Amt. Check Date Check #
- ---------------------------------------------------------------------------------------------------------------------------------
57117 Deloitte and Touche $18,000.00 01/28/02 50064363
44013 McCarter and English $493.69 01/28/02 50064388
101730 CBIZ Property Tax Solutions, Inc. $160.92 01/28/02 50064391
101730 CBIZ Property Tax Solutions, Inc. $2,487.07 01/28/02 50064392
101730 CBIZ Property Tax Solutions, Inc. $4,670.97 01/28/02 50064393
101730 CBIZ Property Tax Solutions, Inc. $4,814.83 01/28/02 50064394
101730 CBIZ Property Tax Solutions, Inc. $5,813.53 01/28/02 50064395
101730 CBIZ Property Tax Solutions, Inc. $6,508.23 01/28/02 50064396
101730 CBIZ Property Tax Solutions, Inc. $6,515.98 01/28/02 50064397
101730 CBIZ Property Tax Solutions, Inc. $6,669.11 01/28/02 50064398
101730 CBIZ Property Tax Solutions, Inc. $6,698.29 01/28/02 50064399
101730 CBIZ Property Tax Solutions, Inc. $10,617.16 01/28/02 50064400
101730 CBIZ Property Tax Solutions, Inc. $12,000.00 01/28/02 50064401
44013 McCarter and English $284.00 01/29/02 50064429
101606 Service Real Estate Venture $51,988.00 01/29/02 B0026748
71403 Seyfarth, Shaw, Fairweather and Geraldson $7,247.03 01/30/02 50064479
96221 Holt and Babington $46.81 01/30/02 50064486
44013 McCarter and English $1,872.06 01/31/02 50064602
57117 Deloitte and Touche $27,125.00 02/01/02 50064651
44013 McCarter and English $1,495.40 02/04/02 50064725
44013 McCarter and English $382.61 02/05/02 50064804
44013 McCarter and English $175.00 02/06/02 50064863
84740 Taft, Stettinius and Hollister $10,523.46 02/08/02 50064993
95913 Locke, Reynolds, Boyd and Weisell $947.16 02/08/02 50064999
48779 Loss, Pavone and Orel $1,177.50 02/08/02 50065016
69583 McCarthy, Fingar, Donovan, Drazen and Smith, LLP $37.50 02/11/02 50065103
57117 Deloitte and Touche $24,270.00 02/11/02 50065106
44013 McCarter and English $1,488.47 02/12/02 50065162
95384 Deloitte and Touche, LLP $21,749.04 02/12/02 50065164
99329 Aegis Property Tax Specialists $10,500.00 02/13/02 50065230
99329 Aegis Property Tax Specialists $2,137.50 02/13/02 50065231
71217 Bass, Berry and Sims Escrow Account $135,082.85 02/15/02 B0026852
99104 Jay Alix and Associates $23,980.00 02/15/02 B0026853
99444 Sitrick and Company, Inc. $9,957.40 02/15/02 B0026854
57117 Deloitte and Touche $18,000.00 02/18/02 50065378
84740 Taft, Stettinius and Hollister $457.50 02/19/02 50065438
44013 McCarter and English $1,378.68 02/19/02 50065457
86237 Brusniak, Clement, Harrison and McCool, PC $115.00 02/19/02 50065509
50995 Brann and Isaacson $689.54 02/20/02 50065577
57117 Deloitte and Touche $44,741.00 02/20/02 50065579
67017 Barkley and Thompson $1,910.72 02/21/02 50065832
95384 Deloitte and Touche, LLP $55,529.67 02/21/02 50065834
84740 Taft, Stettinius and Hollister $13,948.43 02/22/02 50065944
Note: The disclosure on page 1 is an integral part of these
consolidated financial statements and schedules.
Page 7
FORM OPR-1 AND 2
SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(IN THOUSANDS)
FEBRUARY 24,
2002
-------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 30,898
Accounts receivable 22,306
Inventories 0
Prepaid Expenses 2,161
----------
TOTAL CURRENT ASSETS 55,365
----------
PROPERTY AND EQUIPMENT
Owned assets, net of accumulated depreciation 338,233
Capitalized leases, net of accumulated amortization 10,219
----------
TOTAL PROPERTY AND EQUIPMENT 348,452
----------
Other assets and deferred charges 16,228
----------
TOTAL ASSETS $ 420,045
==========
LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY
LIABILITIES NOT SUBJECT TO COMPROMISE
CURRENT LIABILITIES:
Notes payable to banks $ --
Accounts payable 38,307
Accrued expenses 85,818
State & Local tax 12,096
Current maturities capitalized leases 103
----------
TOTAL CURRENT LIABILITIES 136,324
----------
Note: The disclosure on page 1 is an integral part of these
consolidated financial statements and schedules.
Page 8
FORM OPR-1 AND 2
SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(IN THOUSANDS)
FEBRUARY 24,
2002
-------------
LONG-TERM LIABILITIES:
Long-term debt --
Capitalized lease obligations 2,277
LIABILITIES SUBJECT TO COMPROMISE:
Accrued restructuring costs 42,067
Capitalized lease obligations 18,398
Long-term debt 403,304
Accounts payable 208,656
Accrued expenses 109,491
----------
Total Liabilities Subject To Compromise 781,916
TOTAL LIABILITIES 920,517
----------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' (DEFICIT) EQUITY
Common stock 49,936
Additional paid-in-capital 5,881
Deferred compensation (75)
Accumulated other comprehensive loss --
Retained (deficit) earnings (556,214)
----------
TOTAL SHAREHOLDERS' (DEFICIT) EQUITY (500,472)
TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY $ 420,045
==========
Note: The disclosure on page 1 is an integral part of these
consolidated financial statements and schedules.
Page 9
CHAPTER 11
MONTHLY OPERATING REPORT
CASE NAME: SERVICE MERCHANDISE COMPANY, INC. et. al.
CASE NUMBER: 399-02649 THROUGH 399-02680
PERIOD: JANUARY 28, 2002 THROUGH FEBRUARY 24, 2002
SUMMARY OF ACCOUNTS RECEIVABLE
MONTH ENDED: FEBRUARY 24, 2002
FORM OPR-3 NOT APPLICABLE
Note: The disclosure on page 1 is an integral part of these
consolidated financial statements and schedules.
Page 10
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 28, 2002 THROUGH FEBRUARY 24, 2002
SCHEDULE OF POST PETITION LIABILITIES-ACCOUNTS PAYABLE
Month Ended: 2/24/02
FORM OPR-4
Total
----------
Trade Accounts Payable (Merchandise) $ 38,307
Total
----------
Expense & other payables $ 85,818
Note: The disclosure on page 1 is an integral part of these
consolidated financial statements and schedules.
Page 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: JANUARY 28, 2002 THROUGH FEBRUARY 24, 2002
SCHEDULE OF POST PETITION LIABILITIES
FORM OPR-4
(Dollars in Thousands)
Date Date Total
TAXES PAYABLE Incurred Due Due
---------------------------------------------
Federal income tax ** Various Various $ 1,684
State income tax Various Various (6)
--------
SUBTOTAL $ 1,678
--------
Sales/use tax SUBTOTAL * Various Various $ 12,100
--------
Personal property tax * Various Various $ 998
Real estate taxes * Various Various 8,883
Inventory taxes * Various Various --
Gross receipts/bus licenses * Various Various (74)
Franchise taxes * Various Various 807
--------
SUBTOTAL $ 10,614
--------
--------
TOTAL TAXES PAYABLE $ 24,392
========
* liability included in accrued expenses on OPR-2
** tax reserve
Note: The disclosure on page 1 is an integral part of these
consolidated financial statements and schedules.
Page 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: JANUARY 28, 2002 THROUGH FEBRUARY 24, 2002
SCHEDULE OF POST PETITION LIABILITIES
FORM OPR-4
(DOLLARS IN THOUSANDS)
DATE TOTAL DUE
INCURRED DATE DUE (2/24/02 BALANCE)
---------------------------------------------------------------
POST PETITION SECURED DEBT
Revolver borrowings 04/14/00 04/14/04 $ --
Facility standby letters of credit 04/14/00 04/14/04 20,141
Facility trade letters of credit 04/14/00 04/14/04 9,610
Term loans 04/14/00 04/14/04 --
--------
TOTAL EXTENSIONS OF CREDIT $ 29,751
========
ACCRUED INTEREST PAYABLE $ 1,006
========
Note: The disclosure on page 1 is an integral part of these
consolidated financial statements and schedules.
Page 13
FORM OPR-5
SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(IN THOUSANDS)
ACTIVITY
JANUARY 28, 2002
THROUGH
FEBRUARY 24, 2002
-----------------
Net Sales $ 13,940
Costs of merchandise sold and buying and occupancy expense 16,591
----------
Gross margin after cost of merchandise sold and buying and occupancy expenses (2,651)
Selling, General and Administrative Expenses:
Net Employment Expense 7,904
Net Advertising (30)
Banking and Other Fees 427
Real Estate and Other Taxes 1,717
Supplies (9)
Communication and Equipment 278
Travel 41
UCC and Other Services 83
Legal and Professional 87
Sales and Shipping 31
Insurance 93
Miscellaneous (1,806)
Credit Card Services 1
----------
Total Selling, General and Administrative Expenses 8,817
Other expense/(income), net (57)
Note: The disclosure on page 1 is an integral part of these
consolidated financial statements and schedules.
Page 14
FORM OPR-5
SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(DEBTOR-IN-POSSESSION)
(IN THOUSANDS)
ACTIVITY
JANUARY 28, 2002
THROUGH
FEBRUARY 24, 2002
-----------------
Restructuring charge (credit) --
Depreciation and amortization --
----------
Earnings (loss) before interest, reorganization items, and income tax (11,411)
Interest expense - debt 880
Interest expense - capitalized leases 183
----------
Earnings (loss) before reorganization items, and income tax (12,474)
Reorganization Items:
Legal and Professional (4,663)
Miscellaneous (520)
Loss (Gain) on Disposal of Assets --
Close Store Charges --
----------
Total Reorganization Items (5,183)
Earnings (loss) before income tax (7,291)
Income tax benefit --
Cumulative Effect of Change in Accounting Principles --
----------
Net earnings (loss) $ (7,291)
==========
Note: The disclosure on page 1 is an integral part of these
consolidated financial statements and schedules.
Page 15