Docoh
Loading...

HGGGQ HHGregg

Filed: 31 Dec 20, 11:04am
 
        Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
FOR THE SOUTHERN DISTRICT OF INDIANA
In reGregg Appliances, Inc.Case No.17-01303-11
 Debtors      
MONTHLY OPERATING REPORT
Gregg Appliances, Inc.
INDEX TO CONDENSED FINANCIAL STATEMENTS AND SCHEDULES
CONDENSED FINANCIAL STATEMENTS   Page
 
Condensed Statement of Income
   2
 
Condensed Balance Sheet
    3
 
Condensed Statement of Cash Flows
   4
SCHEDULES        
 
Schedule 1 -
Total Disbursements
   5
 
Schedule 2 -
Bank Reconciliations
    6
 
Schedule 3 -
Total Disbursements to Retained Professionals
  7
 
Schedule 4 -
Summary of Unpaid Post-Petition Debts
  8
 
Schedule 5 -
Schedule of Federal, State, and Local Taxes Collected, Received, Due or Withheld
9
 
Schedule 6 -
Accounts Receivable Aging
   10
 
Schedule 7 -
 Questionnaire
11
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the documents attached are true and correct to the best of my knowledge and belief.
Signature of Debtor
    
Date
   
Signature of Joint Debtor
   
Date
   
/s/ Kevin Kovacs
   
12/28/2020
 
Signature of Authorized Individual*
   
Date
   
Kevin Kovacs   
CEO/CFO
   
Printed Name of Authorized Individual
  
Title of Authorized Individual
 
* Authorized individual must be an officer, director, or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.
 



1


Gregg Appliances, Inc. 
DEBTORS AND DEBTORS IN POSSESSION 
Condensed Consolidated Statement of Income (unaudited) 
  For the Period of
  November 1, 2020 to
(In Thousands)November 30, 2020
Net Sales
$
 
Cost of Goods Sold
 
Gross Profit/(Loss)
 
Operating Expenses:
 
Advertising Expense, Net
 
Occupancy Costs3
 
Data Communications0
 
Repair and Maintenance 
Company Insurance (Non-Medical)0 
Employee Benefits1
 
Wage Expense39
 
Employee Services0
 
Travel and Entertainment
 
Bank Transaction Fees1
 
Professional Fees181
 
Stock Compensation Expense (Benefit), Net
 
Gain/Loss on Early Extinguishment of Debt
 
Depreciation and Amortization
 
Administrative and Sales Expense12
 
Product Services Expense
 
Bad Debts
 
Total Operating Expenses
238

Operating Income/(Loss)$       (238)
Interest Expense, net
 
Other Income/(Expense)
4,802
 
Income Before Taxes$4,564
Income Tax Expense/(Benefit)
—  
Net Income/(Loss)
$
4,564





2

Gregg Appliances, Inc. 
DEBTORS AND DEBTORS IN POSSESSION 
Condensed Consolidated Balance Sheet (unaudited) 
 As of
(In Thousands)11/30/2020
Assets 
Cash

842

Credit Card and Trade Accounts Receivable, Net
5,954

Accounts Receivable - Other
7,453

Merchandise Inventories

Prepaid Expenses and Other Assets
26

Income Taxes Receivable

Total Current Assets14,274
 
Property and Equipment, Net

Capitalized Financing Fees, Net

Goodwill

Trademarks, Net

Other Assets, Net

Total Assets$14,274

Liabilities and Stockholders' Deficit 
Accounts Payable
8,054

Outstanding Customer Deposits, Credits, Refunds
1,560

Unredeemed Gift Card Liability
15

Other Accrued Expenses
1,279

Deferred Tax Liability

DIP Loans

Total Current Liabilities$10,907

Deferred Rent

LT Deferred Compensation
234

Other Long-term Liabilities
107

Liabilities Subject to Compromise
 
191,450

Total Liabilities$ 
202,698

Preferred Stock

Common Stock
4

Accumulated Deficit
(342,975
)
Treasury Stock
(150,228
)
Additional Paid-in Capital
304,775

Total Stockholders' Deficit$(188,424
)
Total Liabilities and Stockholders' Deficit
$
14,274

 

 
3


 
Gregg Appliances, Inc. 
DEBTORS AND DEBTORS IN POSSESSION 
Condensed Consolidated Statement of Cash Flows (unaudited) 
 For the Period of 
 November 1, 2020 to 
(In Thousands)November 30, 2020 
Cash flows from operating activities:  
     Net cash provided by (used in) operating activities
$
319

 
Cash flows from investing activities:  
     Purchases of property and equipment

 
     Proceeds from sale of property and equipment

 
     Other

 
     Net cash used in investing activities

 
Cash flows from financing activities:  
     Net Borrowings (Repayments) on Debt Facility
 
 
 
 
 
Increase/(decrease) in cash and cash equivalents
319
 
 
Cash and cash equivalents at beginning of period
523

 
Cash and cash equivalents at end of period
$
842

 


4





Gregg Appliances, Inc.    
DEBTORS AND DEBTORS IN POSSESSION  
Total Disbursements by Filed Legal Entity (unaudited) 
(In Thousands)
    
For the Period of November 1, 2020 to November 30, 2020
Legal Entity Case Number  Disbursements
Gregg Appliances, Inc.
 17-01303-11 
$
4,483





5




Gregg Appliances, Inc.    
DEBTORS AND DEBTORS IN POSSESSION    
Bank Reconciliations (unaudited)    
(In Thousands)
      
G/L AcctAccount NameBank Acct #DebtorDescriptionBank BalanceLedger BalanceAs of DateReconciled
1000
Master Operating Account
9174
Gregg Appliances, Inc.
Operating Account
$          825

$             825

11/30/2020
Yes
1001Corporate Account
9505
Gregg Appliances, Inc.
Corporate AR deposit account, All retail locations depository account
$            —
 
$               —
 
11/30/2020
Yes
1016
Cash Concentration
9455
Gregg Appliances, Inc.
Cash Dominion
$            17

$               17

11/30/2020
Yes
1017Gregg AR DIP REVOLVERZT08
Gregg Appliances, Inc.
Excess cash on Wells Fargo AR DIP Revolver
$            —
 
$               —
 
11/30/2020
 
Yes
1051
Disbursements
9729
Gregg Appliances, Inc.
Checking
$            —

$               —

11/30/2020
Yes
1011Restricted - Wells Fargo EscrowInternal Wells Fargo AccountGregg Appliances, IncLegal Reserve and Escrow for Whirlpool,  Electrolux, GACP and WGT V Matters$             —$              —   
11/30/2020
No



6











Gregg Appliances, Inc.     
DEBTORS AND DEBTORS IN POSSESSION    
Total Disbursements to Retained Professionals (unaudited)    
(In Thousands)
     
For the Period of November 1, 2020 to November 30, 2020
Retained Professionals Approved Amounts (1) Disbursements
MORGAN, LEWIS & BOCKIUS LLP
Legal Services
 
$                               2,779

 
$                  670
STIFEL, NICOLAUS & COMPANY INC
Bankruptcy Services
 
$                                    —

 $                    —
BERKELEY RESEARCH GROUP LLC
Bankruptcy Services
 
$                               2,423

 
$                    —
DONLIN, RECANO & COMPANY INC
Bankruptcy Services
 
$                                    —

 
$                    21
ICE MILLER LLP
Legal Services
 
$                               2,007

 
$                  213
BINGHAM GREENEBAUM DOLL LLP
Bankruptcy Services

$                                  235

$                    54
MALFITANO PARTNERS
Bankruptcy Services
 
$                                    66

 
$                    —
COOLEY LLP
Bankruptcy Services
 
$                               2,558

 
$                  260
PROVINCE, INC.
Bankruptcy Services
 
$                                  556
  
$                    —
DLA PIPER LLP US
Bankruptcy Services

 
$                                    —
 
  
$                    —
FAEGRE DRINKLE BIDDLE & REATH
Bankruptcy Services

$                                    —


$                   —
CHOATE HALL & STEWART LLP
Bankruptcy Services

$                                    —
 
$                   —
ASK LLP 
Bankruptcy Services

 
$                                    —
 
$                   —
GREAT AMERICAN GROUP 
Bankruptcy Services

$                                    —
 
$                   —
GAVIN SOLMENESE LLC
Bankruptcy Services


$                                  136
  $                   —
CHIPMAN BROWN CICERO & COLE, LLP
 
Legal Services
 $                               1,819
  
$                   —
 
 
 

  
Total  
 
$                            12,580

 
$
1,218
(1) Approved amounts represent the amount of fees and expenses that were approved by court order for payment by the Debtors to each professional from commencement of the case through November 2020.
 
 



 
7


Gregg Appliances, Inc.      
DEBTORS AND DEBTORS IN POSSESSION     
Summary of Unpaid Post-Petition Debts (unaudited)  
As of 11/30/2020      
(In Thousands)      
Gregg Appliances, Inc. (17-01303-11)
   Number of Days Past Due
 Current 0-3031-6061-90Over 90Total
Accounts Payable
$             —
 
$
0

$             —

$             94

$           732

$
826

Wages Payable
$               4

$             —

$             —

$             —

4

Taxes Payable (1)
$               1


$             —

$             —

$           936

937

Rent/Leases-Building
$             —


$             —
 
$             —
 
$        3,759

3,759

Utilities Payable (2)
$             —


$             —

$             —

$           390

390

Insurance Reserves
$             —


$             —

$             —

$             —


Secured Debt/Adequate Protection Payments
$             —


$             —

$             —

$             —


Professional Fees
$           176

9

$             14

$        1,498

$           801

2,497

Amounts Due to Insiders
$             —


$             —

$             —

$             —


Outstanding Customer Deposits, Credits, Refunds (2)
$             —


$             —

$             —

$        1,560

1,560

Unredeemed Gift Card Liability (2)
$             —


$             —

$             —

$             15

15

Deferred Rent
$             —


$             —

$             —

$             —


LT Deferred Compensation
$             —


$             —

$             —

$           234

234

Other (2)
$             —


$             —

$             —

$        1,026

1,026

Total Post-Petition Debts
$           181

$9

$             14

$        1,591

$        9,453

$11,248

(1) Any past due taxes payable relate to unpaid business license fees for 2017, as well as unpaid gross receipts taxes payable and any penalties charged for late payments beginning in July 2017.



8


Gregg Appliances, Inc.    
DEBTORS AND DEBTORS IN POSSESSION  
Schedule of Federal, State, & Local Taxes Collected, Received, Due or Witheld (unaudited) 
(In Thousands)      
For the Period of November 1, 2020 to November 30, 2020   
 Beginning Tax LiabilityAmount Withheld or AccruedAmount PaidDate PaidCheck No. or EFTEnding Tax Liability
Federal      
Withholding
 $                       0

$                         7

$                 (7
)
11/2;11/10;11/25
WIRE
$                1

FICA - Employee
 $                       0

$                         1

$                 (1
)
11/2;11/10;11/25
WIRE$                0

FICA - Employer
 $                       0

$                         1

$                 (1
)
11/2;11/10;11/25
WIRE$                0

Unemployment
 $                     (0)

$                       —

$                —



$              (0
)
Income
 $                    — 

    $             —

Total Federal Taxes
 $                    — 

$                       10

$                 (9
)
  
$               0

State and Local      
Withholding
 $                       0

$                         2

$                 (2
)
11/2;11/10;11/25
WIRE$               0

Sales and Use
 $                    (0)

 $                       —
 
$                —
 
$             (0
)
Excise
$                     —

 $                       —

$                —   $             —

Unemployment
 $                     —

 $                       —

$                     



$               0

Real Property
$                3,474

 $                       —

$                 —

  $        3,474

Personal Property
$                1,582

 $                       —

$                 —
 
$        1,582

Other
$                     99

 $                       —
 
$                 —

  $             99

   Total State and Local
$                5,156

$                         2
 
$                  (2
)
  $        5,156





9

 
Gregg Appliances, Inc.      
DEBTORS AND DEBTORS IN POSSESSION      
Accounts Receivable Aging (unaudited)      
 
(In Thousands)      
As of November 30, 2020      
Accounts Receivable Reconciliation  Credit Card ReceivablesTrade Accounts Receivable Total Credit Card and Trade Accounts Receivable
Total Accounts Receivable at the beginning of the reporting period
  
$
900
 
 
5,054

 
$
5,954

+ Amounts billed during the period
  


 
 

- Amounts collected during the period
  

 
 
 
 
- Other Adjustments (Writeoffs/Credit Memos/Adjustments/Chargebacks/Signifyd Funding)
  
 

 
 
 
Total Accounts Receivable at the end of the reporting period
  
$
900
 
$
5,054

 
$
5,954

 
As of November 30, 2020     
Accounts Receivable Aging13.92
 Amount    
 
< 90
  $                         —

$                        —

 
$

91+
  2.8900
 
5,054

 
 
5,954

Total Accounts Receivable
  2.8900
 
5,054

 
 
5,954

Amount Considered Uncollectible
  —


 
 

Accounts Receivable, Net
 $       2.8
$
900
 
$
5,054

 
$
5,954

 (1) / (2)
NOTES
      
(1) In July 2018, all Credit Card Receivables were written off with the exception of Pre-Petition funds withheld by Vantiv (Visa/Mastercard) in the amount of $900,000. Debtors understand some or all of that amount was applied against chargebacks by the Credit Card companies; however, will continue to carry balance until fully resolved.
(2) No reserves have been recorded against credit card receivables. 
(3) $8.5M of Accounts Receivable - Other exists at 011/30/2020, all of which is aged > 90 days past due.
 
 
 


10



Gregg Appliances, Inc.      
DEBTORS AND DEBTORS IN POSSESSION    
Questionnaire      
      YesNo
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.
 X
2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.
 X
3. Have all post-petition tax returns been filed timely? If no, provide an explanation below.
X 
4. Are workers compensation, general liability, and other necessary insurance coverages in effect? If no, provide an explanation below.
X 
5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.
 X
Account NamePurposeBusinessAcct NumberBank NameDate


 
 
 
 
 

 


11