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HHGregg (HGGGQ)

Filed: 28 Jul 22, 1:14pm
UNITED STATES BANKRUPTCY COURT
     Southern        DISTRICT OF       Indiana     
                    Indianapolis Division                   
In Re. GREGG APPLIANCES, INC.§
§
§
§
Case No. 17-01303                                 
  
Lead Case No. 17-01302                        
     
 Debtor(s)   
   ☒ Jointly Administered  


Monthly Operating Report
 Chapter 11
                               
                         
Reporting Period Ended:   06/30/2022           
Petition Date: 03/06/2017             

Months Pending:    64                    
Industry Classification:4431

Reporting Method: 
Accrual Basis  ☒  Cash Basis ☐    
Debtor's Full-Time Employees (current):  1    
Debtor's Full-Time Employees (as of date of order for relief): 
 3,500    
       
       

Supporting Documentation (check all that are attached):
(For jointly administered debtors, any required schedules must be provided on a non-consolidated basis for each debtor)
☒      Statement of cash receipts and disbursements
☒      Balance sheet containing the summary and detail of the assets, liabilities and equity (net worth) or deficit
☒      Statement of operations (profit or loss statement)
☐      Accounts receivable aging
☐      Postpetition liabilities aging
☐      Statement of capital assets
☐      Schedule of payments to professionals
☐      Schedule of payments to insiders
☒      All bank statements and bank reconciliations for the reporting period
☐      Description of the assets sold or transferred and the terms of the sale or transfer
/s/ Jeffrey A. Hokanson Jeffrey A. Hokanson
Signature of Responsible Party
 Printed Name of Responsible Party
 
 
 
07/26/2022 
Date 
Ice Miller LLP
One American Square, Suite 2900
Indianapolis, IN 46282
 
 Address


STATEMENT: This Periodic Report is associated with an open bankruptcy case; therefore, Paperwork Reduction Act exemption 5 C.F.R. § 1320.4(a)(2) applies.
1

Debtor's Name
 GREGG APPLIANCES, INC.  Case No. 17-01303
 

Part 1: Cash Receipts and Disbursements Current Month 
Cumulative

a.  Cash balance beginning of month$883,271  
b.  Total receipts (net of transfers between accounts)$0 $32,085,528
c.  Total disbursements (net of transfers between accounts)$36,534 $154,197,763
d.  Cash balance end of month (a+b-c)$846,737  
e.  Disbursements made by third party for the benefit of the estate$0 $0
f.  Total disbursements for quarterly fee calculation (c+e)$36,534 
$154,197,763

Part 2: Asset and Liability Status  Current Month
(Not generally applicable to Individual Debtors. See Instructions.)

a.  Accounts receivable (total net of allowance)$5,954,425  
b.  Accounts receivable over 90 days outstanding (net of allowance)$5,954,425  
c.  Inventory  (Book ☐  Market ☐  Other ☒ (attach explanation))$0  
d.  Total current assets$14,278,595  
e.  Total assets
$14,278,595
  
f.  Postpetition payables (excluding taxes)$10,285,019  
g.  Postpetition payables past due (excluding taxes)$10,277,784  
h.  Postpetition taxes payable$936,437  
i.  Postpetition taxes past due$936,244  
j.  Total postpetition debt (f+h)$11,221,456  
k.  Prepetition secured debt$0  
l.  Prepetition priority debt$0  
m. Prepetition unsecured debt$191,198,908  
n.  Total liabilities (debt) (j+k+l+m)$202,420,364  
o.  Ending equity/net worth (e-n)$-188,141,769  

Part 3: Assets Sold or Transferred 

Current Month  Cumulative
    
a.  Total cash sales price for assets sold/transferred outside the ordinary
     course of business
$0 $9,514,845
 
b.  Total payments to third parties incident to assets being sold/transferred
     outside the ordinary course of business
 $0 $443,274
 
c.  Net cash proceeds from assets sold/transferred outside the ordinary
     course of business (a-b)
 
$0
 
 
$9,071,571
   

Part 4: Income Statement (Statement of Operations)
(Not generally applicable to Individual Debtors. See Instructions.)
Current Month Cumulative
a.  Gross income/sales (net of returns and allowances)$0  
b.  Cost of goods sold (inclusive of depreciation, if applicable)$0  
c.  Gross profit (a-b)$0  
d.  Selling expenses$0  
e.  General and administrative expenses$-29,951  
f.  Other expenses$0  
g.  Depreciation and/or amortization (not included in 4b)$0  
h.  Interest$0  
i.  Taxes (local, state, and federal)$0  
j.  Reorganization items$0  
k.  Profit (loss)$-29,951 $-115,867,129




2

Debtor's Name
 GREGG APPLIANCES, INC.  Case No. 17-01303
 
 

Part 5: Professional Fees and Expenses



  a.
                  
   Approved Current Month
Approved
Cumulative
Paid Current
Month
Paid
Cumulative
Debtor's professional fees & expenses (bankruptcy) Aggregate Total
$0$12,687,363$19,653$17,560,484
Itemized Breakdown by Firm         
 Firm NameRole
iMORGAN, LEWIS & BOCKIULead Counsel$0$2,778,932$0$2,519,564
iiSTIFEL, NICOLAUS & COMPFinancial Professional$0$0$0$700,000
iiiBERKELEY RESEARCH GROFinancial Professional$0$2,423,421$0$2,394,421
ivDONLIN, RECANO & COMPAOther
$0$0$19,653$1,313,779
vICE MILLER LLPLocal Counsel$0$2,007,146$0$1,992,794
viBINGHAM GREENBAUM DOSpecial Counsel$0$234,875$0$212,658
viiCOOLEY LLPSpecial Counsel$0$2,557,805$0$2,567,066
viiiPROVINCE, INC.Financial Professional$0$556,352$0$583,198
ixDLA PIPER LLP USOther$0$5,452$0$2,549,550
xFAEGRE DRINKER BIDDLESpecial Counsel$0$0$0$424,058
xiCHOATE HALL & STEWARTSpecial Counsel$0$0$0$902,972
xiiASK LLPOther$0$0$0$675,000
xiiiGREAT AMERICAN GROUPOther$0$0$0$368,689
xivGAVIN SOLMENESE LLCOther$0$136,472$0$21,648
xvCHIPMAN BROWN CICEROSpecial Counsel$0$1,986,908$0$335,087



  b.
                  




  c.
   Approved Current Month
Approved
Cumulative
Paid Current
Month
Paid
Cumulative
Debtor's professional fees & expenses (nonbankruptcy) Aggregate Total




Itemized Breakdown by Firm 

 Firm NameRole
i





ii





All professional fees and expenses (debtor & committees)







Part 6: Postpetition Taxes

Current Month Cumulative
a.  Postpetition income taxes accrued (local, state, and federal)$0 $0
b.  Postpetition income taxes paid (local, state, and federal)$0 $0
c.  Postpetition employer payroll taxes accrued$246 $2,388,216
d.  Postpetition employer payroll taxes paid$-231 $-2,827,557
e.  Postpetition property taxes paid$0 $0
f.  Postpetition other taxes accrued (local, state, and federal)$0 $0
g.  Postpetition other taxes paid (local, state, and federal)$0 $0

Part 7: Questionnaire - During this reporting period:

 
  
a.  Were any payments made on prepetition debt? (if yes, see Instructions) 
Yes ☐  No ☒
b.  Were any payments made outside the ordinary course of business 
Yes ☐  No ☒
     without court approval? (if yes, see Instructions) 
c.  Were any payments made to or on behalf of insiders? 
Yes ☐  No ☒


3

Debtor's Name
 GREGG APPLIANCES, INC.  Case No. 17-01303
 
 

d.  Are you current on postpetition tax return filings? 
Yes ☒  No ☐
e.  Are you current on postpetition estimated tax payments? 
Yes ☒  No ☐
f.  Were all trust fund taxes remitted on a current basis? 
Yes ☒  No ☐
g.  Was there any postpetition borrowing, other than trade credit? 
Yes ☐  No ☒
     (if yes, see Instructions) 
h.  Were all payments made to or on behalf of professionals approved byYes ☒  No ☐  N/A ☐
     the court? 
i.   Do you have:                        Worker's compensation insurance?
Yes ☒  No ☐
If yes, are your premiums current? 
Yes ☒  No ☐  N/A ☐  (if no, see Instructions)
Casualty/property insurance? 
Yes ☒  No ☐
If yes, are your premiums current? Yes ☒  No ☐  N/A ☐  (if no, see Instructions)
General liability insurance?
Yes ☒  No ☐
If yes, are your premiums current?
Yes ☒  No ☐  N/A ☐  (if no, see Instructions)
j.   Has a plan of reorganization been filed with the court?
Yes ☐  No ☒
k.  Has a disclosure statement been filed with the court? 
Yes ☒  No ☐
l.   Are you current with quarterly U.S. Trustee fees asYes ☒  No ☐
     set forth under 28 U.S.C. § 1930? 

Part 8: Individual Chapter 11 Debtors (Only)

   
    
a.   Gross income (receipts) from salary and wages 
 $0 
b.   Gross income (receipts) from self-employment 
  $0 
c.   Gross income from all other sources 
  $0 
d.   Total income in the reporting period (a+b+c)  $0 
e.   Payroll deductions 
  $0 
f.   Self-employment related expenses 
  $0 
g.   Living expenses 
  $0 
h.  All other expenses 
  $0 
i.   Total expenses in the reporting period (e+f+g+h)  $0 
j.   Difference between total income and total expenses (d-i)  $0 
k.   List the total amount of all postpetition debts that are past due 
  $0 
l.   Are you required to pay any Domestic Support Obligations as defined by 11 Yes ☐  No ☒  
      U.S.C § 101(14A)?   
m.  If yes, have you made all Domestic Support Obligation payments? 
 Yes ☐  No ☐  N/A ☒  


4

Debtor's Name
 GREGG APPLIANCES, INC.  Case No. 17-01303
 
 
Privacy Act Statement
28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor's progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST-001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index.htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F).
I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting  documentation are true and correct and that I have been authorized to sign this report on behalf of the estate.
/s/ Kevin Kovacs
 
Kevin Kovacs
Signature of Responsible Party
 Printed Name of Responsible Party
 
 
 
Chief Financial Officer
 07/18/2022
Title
 Date
 
 








5

Gregg Appliances, Inc.
DEBTORS AND DEBTORS IN POSSESSION
Condensed Consolidated Statement of Income (unaudited)

  For the Period of 
  June 1, 2022 to 
(In Thousands) June 30, 2022 
Net Sales 
$
-
 
Cost of Goods Sold  
-
 
Gross Profit/(Loss)

  
-
 
Operating Expenses:
    
Advertising Expense, Net  
-
 
Occupancy Costs  
1
 
Data Communications  
-
 
Repair and Maintenance  
-
 
Company Insurance (Non-Medical)  
0
 
Employee Benefits  
0
 
Wage Expense  
3
 
Employee Services  
1
 
Travel and Entertainment -    
Bank Transaction Fees  
0
 
Professional Fees  
13
 
Stock Compensation Expense (Benefit), Net  
-
 
Gain/Loss on Early Extinguishment of Debt  
-
 
Depreciation and Amortization  
-
 
Administrative and Sales Expense  
12
 
Product Services Expense  
-
 
Bad Debts  
-
 
     
     
Total Operating Expenses  30 
     
Operating Income/(Loss) $(30)
     
Interest Expense, net
  
-
 
Other Income/(Expense)
  
-
 
     
Income Before Taxes $(30)
     
Income Tax Expense/(Benefit)
  
-
 
     
Net Income/(Loss) 
$
(30)

 


Gregg Appliances, Inc.
DEBTORS AND DEBTORS IN POSSESSION
Condensed Consolidated Balance Sheet (unaudited)

  As of 
(In Thousands) 6/30/2022 
    
Assets   
Cash
  
847
 
Credit Card and Trade Accounts Receivable, Net
  
5,954
 
Accounts Receivable - Other
  
7,453
 
Merchandise Inventories
  
-
 
Prepaid Expenses and Other Assets
  
25
 
Income Taxes Receivable
  
-
 
Total Current Assets  
14,279
 
     
Property and Equipment, Net
  
-
 
Capitalized Financing Fees, Net
  
-
 
Goodwill
  
-
 
Trademarks, Net
  
-
 
Other Assets, Net
  
-
 
     
Total Assets 
$
14,279
 
     
Liabilities and Stockholders' Deficit    
Accounts Payable
  
8,059
 
Oustanding Customer Deposits, Credits, Refunds
  
1,560
 
Unredeemed Gift Card Liability
  
15
 
Other Accrued Expenses
  
1,247
 
Deferred Tax Liability
  
-
 
DIP Loans
  
-
 
     
Total Current Liabilities 
$
10,881
 
     
Deferred Rent
  
-
 
LT Deferred Compensation
  
234
 
Other Long-term Liabilities
  
107
 
Liabilities Subject to Compromise
  
191,199
 
     
Total Liabilities 
$
202,420
 
     
Preferred Stock
  
-
 
Common Stock
  
4
 
Accumulated Deficit
  
(342,693
)
Treasury Stock
  
(150,228
)
Additional Paid-in Capital
  
304,775
 
Total Stockholders' Deficit 
$
(188,142
)
     
     
Total Liabilities and Stockholders' Deficit 
$
14,279
 



Gregg Appliances, Inc.
DEBTORS AND DEBTORS IN POSSESSION
Condensed Consolidated Statement of Cash Flows (unaudited)

  For the Period of 
  June 1, 2022 to 
(In Thousands) June 30, 2022 
Cash flows from operating activities:   
     Net cash provided by (used in) operating activities
 
$
(37
)
     
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
  
(37
)
     
Cash and cash equivalents at beginning of period
  
883
 
     
Cash and cash equivalents at end of period
 
$
847
 





Gregg Appliances, Inc.
DEBTORS AND DEBTORS IN POSSESSION
Bank Reconciliations (unaudited)

(In Thousands)

G/L AcctAccount NameBank Acct #DebtorDescription Bank Balance ADD: Deposits not credited LESS: Outstanding Checks ADD / (LESS): Other Reconciling Items Ledger BalanceAs of DateReconciled
1000
Master Operating Account
xxxxx9174
Gregg Appliances, Inc.
Operating Account
 
$
 94
 $
 -

$
 -
 $
 -
 $
 94
6/30/2022
Yes
1001
Corporate Account
xxxxx9505
Gregg Appliances, Inc.
Corporate AR deposit account, All retail locations depository account
 
$
 -
 $
 -

$
 -
 $
 -

$
 -
6/30/2022
Yes
1016
Cash Concentration
xxxxx9455
Gregg Appliances, Inc.
Cash Dominion
 
$
753
 $
 -

$
 -
 $
 -

$
 753
6/30/2022
Yes
1051
Disbursements
xxxxx9729
Gregg Appliances, Inc.
Checking
 
$
 -
 $
 -

$
 -
 $
 -

$
 -
6/30/2022
Yes