0000929638-20-001157.txt : 20201231 0000929638-20-001157.hdr.sgml : 20201231 20201231110457 ACCESSION NUMBER: 0000929638-20-001157 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20201230 ITEM INFORMATION: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20201231 DATE AS OF CHANGE: 20201231 FILER: COMPANY DATA: COMPANY CONFORMED NAME: hhgregg, Inc. CENTRAL INDEX KEY: 0001396279 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-RADIO TV & CONSUMER ELECTRONICS STORES [5731] IRS NUMBER: 208819207 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33600 FILM NUMBER: 201427905 BUSINESS ADDRESS: STREET 1: 4151 EAST 96TH STREET CITY: INDIANAPOLIS STATE: IN ZIP: 46240 BUSINESS PHONE: 317-848-8710 MAIL ADDRESS: STREET 1: 4151 EAST 96TH STREET CITY: INDIANAPOLIS STATE: IN ZIP: 46240 8-K 1 a8k.htm CURRENT REPORT
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
 
Form 8-K
 
 
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): December 30, 2020
 
hhgregg, Inc.
 
(Exact name of registrant as specified in its charter)

Commission File Number: 001-33600
Indiana
 
47-4850538
(State or other jurisdiction
of incorporation)
 
(IRS Employer
Identification No.)
160 West Carmel Drive, Suite 263
Carmel, Indiana 46032
(Address of principal executive offices, including zip code)

(317) 848-8710
(Registrant’s telephone number, including area code)
 
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
   
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock
HGGGQ
OTCMKTS

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities and Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ◻
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.           ◻

Item 5.02      Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On December 23, 2020, Benjamin D. Geiger, notified the Board of Directors of hhgregg, Inc. (the “Company”) of his decision to resign as a director of the Company and its subsidiaries, effective as of December 31, 2020.

Item 8.01       Other Events.

On December 30, 2020, the Company filed the Monthly Operating Reports for the period from November 1 to November 30, 2020 with the United States Bankruptcy Court for the Southern District of Indiana (the “Bankruptcy Court”). A copy of the Monthly Operating Reports are attached as Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3 to this report and are incorporated by reference into this item 8.01.

The Company cautions investors and potential investors not to place undue reliance upon the information contained in the Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any of the Company’s securities.  The Monthly Operating Report is limited in scope, covers a limited time period, and has been prepared solely for the purpose of complying with the monthly reporting requirements of the Office of the United States Trustee.  The Monthly Operating Report was not audited or reviewed by independent accountants, is in a format prescribed by applicable requirements of the Office of the United States Trustee and is subject to future adjustment and reconciliation.  There can be no assurance that, from the perspective of an investor or potential investor in the Company’s securities, the Monthly Operating Report contains any information beyond that required by the Office of the United States Trustee.  The Monthly Operating Report also contains information for periods that are shorter or otherwise different from those required in the Company’s reports pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and such information might not be indicative of the Company’s financial condition or operating results for the period that would be reflected in the Company’s financial statements or in its reports pursuant to the Exchange Act.  Results set forth in the Monthly Operating Report should not be viewed as indicative of future results.

This report and Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3 to this report may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the Company’s financial condition, results of operations, and business that is not historical information.  As a general matter, forward-looking statements are those focused upon future or anticipated events or trends and expectations and beliefs relating to matters that are not historical in nature.  The words “believe”, “expect”, “plan”, “intend”, “estimate”, or “anticipate” and similar expressions, as well as future or conditional verbs such as “will”, “should”, “would”, and “could”, often identify forward-looking statements.  The Company believes that there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain, and the Company may not realize its expectations and its beliefs may not prove correct.  The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.  The Company’s actual results and future financial condition may differ materially from those described or implied by any such forward-looking statements as a result of many factors that may be outside the Company’s control.  Such factors include, without limitation, developments in the bankruptcy proceedings, the results of liquidation sales and other matters.

Item 9.01

Exhibit No.
  
Description
99.1
 
Monthly Operating Report for the Period from November 1 to November 30, 2020 – Gregg Appliances, Inc.
99.2
 
Monthly Operating Report for the Period from November 1 to November 30, 2020 – hhgregg, Inc.
99.3
 
Monthly Operating Report for the Period from November 1 to November 30, 2020 – HHG Distributing LLC.



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
         
 
 
 
 
hhgregg, Inc.
 
 
 
Date: December 31, 2020
 
 
By:
/s/ Kevin J. Kovacs
 
 
 
 
Kevin J. Kovacs
 
 
 
 
President, Chief Executive Officer and Chief Financial Officer




Exhibit Index

Exhibit No.
  
Description
 
 
 

EX-99.1 2 exhibit99-1.htm MONTHLY OPERATING REPORT FOR THE PERIOD FROM NOVEMBER 1 TO NOVEMBER 30, 2020 - GREGG APPLIANCES, INC. Exhibit
 
 
 
 
 
 
 
 
 
Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
FOR THE SOUTHERN DISTRICT OF INDIANA
In re
Gregg 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 Costs
3
 
Data Communications
0
 
Repair and Maintenance
 
Company Insurance (Non-Medical)
0
 
Employee Benefits
1
 
Wage Expense
39
 
Employee Services
0
 
Travel and Entertainment
 
Bank Transaction Fees
1
 
Professional Fees
181
 
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
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 Assets
14,274
 
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 Acct
Account Name
Bank Acct #
Debtor
Description
Bank Balance
Ledger Balance
As of Date
Reconciled
1000
Master Operating Account
9174
Gregg Appliances, Inc.
Operating Account
$          825

$             825

11/30/2020
Yes
1001 Corporate 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
1017 Gregg AR DIP REVOLVER ZT08
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
1011 Restricted - Wells Fargo Escrow Internal Wells Fargo Account Gregg Appliances, Inc Legal 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
 0-30
31-60
61-90
Over 90
Total
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 Liability
Amount Withheld or Accrued
Amount Paid
Date Paid
Check No. or EFT
Ending 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 Receivables
Trade 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 Aging
13.92
 Amount
 
 
 
 
 
< 90
 
 
$                         —

$                        —

 
$

91+
 
 2.8
900
 
5,054

 
 
5,954

Total Accounts Receivable
 
 2.8
900
 
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
 
 
 
 
 
 
 
 
 
 
 
 
Yes
No
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 Name
Purpose
Business
Acct Number
Bank Name
Date


 
 
 
 
 

 


11
EX-99.2 3 exhibit99-2.htm MONTHLY OPERATING REPORT FOR THE PERIOD FROM NOVEMBER 1 TO NOVEMBER 30, 2020 - HHGREGG, INC. Exhibit
 











 
 
 
 
 
 
 
 
Exhibit 99.2
UNITED STATES BANKRUPTCY COURT
FOR THE SOUTHERN DISTRICT OF INDIANA










In re
hhgregg, Inc.
Case No.
17-01302-11
 
Debtors
 
 
 
 
 
 






























MONTHLY OPERATING REPORT
hhgregg, 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







hhgregg, 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



Operating Expenses:
 
Advertising Expense, Net

Occupancy Costs

Data Communications

Repair and Maintenance

Company Insurance (Non-Medical)

Employee Benefits

Wage Expense

Employee Services

Travel and Entertainment

Bank Transaction Fees

Professional Fees

Stock Compensation Expense (Benefit), Net

Gain/Loss on Early Extinguishment of Debt

Depreciation and Amortization

Administrative and Sales Expense

Product Services Expense

Bad Debts





Total Operating Expenses



Operating Income



Interest Expense, net

Other Income/(Expense)



Income Before Taxes



Income Tax Expense/(Benefit)



Net Income
$






2







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




 
 As of
(In Thousands)
11/30/2020


Assets
 
Cash
$

Credit Card and Trade Accounts Receivable, Net

Accounts Receivable - Other

Merchandise Inventories

Prepaid Expenses and Other Assets

Income Taxes Receivable

Total Current Assets



Property and Equipment, Net

Capitalized Financing Fees, Net

Goodwill

Trademarks, Net

Other Assets, Net



Total Assets



Liabilities and Stockholders' Deficit
 
Accounts Payable

Outstanding Customer Deposits, Credits, Refunds

Unredeemed Gift Card Liability

Other Accrued Expenses

Deferred Tax Liability

DIP Loans





Total Current Liabilities



Deferred Rent

LT Deferred Compensation

Other Long-term Liabilities

Liabilities Subject to Compromise
$



Total Liabilities



Preferred Stock

Common Stock

Retained Earnings / (Accumulated Deficit)

Treasury Stock

Additional Paid-in Capital

Total Stockholders' Deficit





Total Liabilities and Stockholders' Deficit
$




3








hhgregg, 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
$

 



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 Line of Credit

 
 

 



Increase/(decrease) in cash and cash equivalents

 



Cash and cash equivalents at beginning of period

 



Cash and cash equivalents at end of period
$

 

4









hhgregg, 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
hhgregg, Inc.
 
17-01302-11
 
$                     —






 
5












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









(In Thousands)
 
 
 
 
 
 
G/L Acct
Account Name
Bank Acct #
Debtor
Description
Bank Balance
Ledger Balance
As of Date
Reconciled
 
NOTE: No bank accounts are held by hhgregg, Inc.
 
 



6













Gregg Applicances, 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

 

STIFEL, NICOLAUS & COMPANY INC
Bankruptcy Services
 

 

BERKELEY RESEARCH GROUP LLC
Bankruptcy Services
 
2,423

 

DONLIN, RECANO & COMPANY INC
Bankruptcy Services
 

 

ICE MILLER LLP
Legal Services
 
2,007

 

 
BINGHAM GREENBAUM DOLL LLP
Bankruptcy Services   235      
 
MALFITANO PARTNERS
Bankruptcy Services
 
66

 

COOLEY LLP
Bankruptcy Services
 
2,558

 

PROVINCE, INC.
Bankruptcy Services
 
556

 

DLA PIPER LLP US
Bankruptcy Services
   
     
 
FAEGRE DRINKER 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) 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
















hhgregg, Inc.
 
 
 
 
 
 
DEBTORS AND DEBTORS IN POSSESSION
 
 
 
 
 
Summary of Unpaid Post-Petition Debts (unaudited)
 
 
As of 11/30/2020
 
 
 
 
 
 





















(In Thousands)
 
 
 
 
 
 
hhgregg, Inc. (17-01302-11)
 
 
 Number of Days Past Due
 
Current
 0-30
31-60
61-90
Over 90
Total
Accounts Payable
$               —

$                   —

$                 —

$        —

$        —

$                  —

Wages Payable






Taxes Payable






Rent/Leases-Building






Utilities Payable






Insurance Reserves






Secured Debt/Adequate Protection Payments






Professional Fees






Amounts Due to Insiders






Outstanding Customer Deposits, Credits, Refunds






Unredeemed Gift Card Liability






Deferred Rent






LT Deferred Compensation






Other






Total Post-Petition Debts
$                   

$                   —

$                 —

$        —

$       —

$                 —

















8


 












hhgregg, 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 Liability
Amount Withheld or Accrued
Amount Paid
Date Paid
Check No. or EFT
Ending Tax Liability
Federal
 
 
 
 
 
 
Withholding
$                  —

$               —

$                 —

 
 
$                     —

FICA - Employee
$                  —

$               —

$                 —

 
 
$                     —

FICA - Employer
$                  —

$               —

$                 —

 
 
$                     —

Unemployment
$                  —

$               —

$                 —

 
 
$                     —

Income
$                  —

$               —

$                 —

 
 
$                     —

Total Federal Taxes
$                  —

$               —

$                 —

 
 
$                     —








State and Local
 
 
 
 
 
 
Withholding
$                  —

$               —

$                 —

 
 
$                     —

Sales and Use
$                  —

$               —

$                 —

 
 
$                     —

Excise
$                  —

$               —

$                 — 
 
 
$                     —

Unemployment
$                  —

$               —

$                 —

 
 
$                     —

Real Property
$                  —

$               —

$                 —

 
 
$                     —

Personal Property
$                  —

$               —

$                 —

 
 
$                     —

Other
$                  —

$               —

$                 —

 
 
$                     —

Total State and Local
$                  —

$               —

$                 —

 
 
$                     —
































9















hhgregg, Inc.
 
 
 
 
 
DEBTORS AND DEBTORS IN POSSESSION
 
 
 
 
 
Accounts Receivable Aging (unaudited)
 
 
 
 
 






(In Thousands)
 
 
 
 
 
As of November 30, 2020
 
 
 
 
 
Accounts Receivable Reconciliation
 
Credit Card Receivables
Trade Accounts Receivable
 
Total Credit Card and Trade Accounts Receivable
Total Accounts Receivable at the beginning of the reporting period
 
$

$

 
$

+ 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
 
$

$

 
$







As of November 30, 2020    
 
 
 
 
Accounts Receivable Aging
 
 
 
 
 






< 90
 
$                             —

$                          —

 
$

91+
 


 
 

Total Accounts Receivable
 


 
 

Amount Considered Uncollectible
 


 
 

Accounts Receivable, Net
 
$

$

 
$







NOTES
 
 
 
 
 















10











hhgregg, Inc.
 
 
 
 
 
 
DEBTORS AND DEBTORS IN POSSESSION
 
 
 
 
Questionnaire
 
 
 
 
 
 








 
 
 
 
 
 
Yes
No
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 Name
Purpose
Business
Acct Number
Bank Name
Date

















11
EX-99.3 4 exhibit99-3.htm MONTHLY OPERATING REPORT FOR THE PERIOD FROM NOVEMBER 1 TO NOVEMBER 30, 2020 - HHG DISTRIBUTING LLC. Exhibit
 
 
 
 
 
 
 
 
 
 
Exhibit 99.3
 
UNITED STATES BANKRUPTCY COURT
FOR THESOUTHERN  DISTRICT OF INDIANA
 
 
In re
HHG Distributing LLC
Case No.
17-01304-11
 
 
Debtors
 
 
 
 
 
 
 
 
 
 
MONTHLY OPERATING REPORT
 HHG Distributing LLC
 
 
 
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


HHG Distributing LLC
 
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

Operating Expenses:
 
Advertising Expense, Net

Occupancy Costs

Data Communications

Repair and Maintenance

Company Insurance (Non-Medical)

Employee Benefits

Wage Expense

Employee Services

Travel and Entertainment

Bank Transaction Fees

Professional Fees

Stock Compensation Expense (Benefit), Net

Gain/Loss on Early Extinguishment of Debt

Depreciation and Amortization

Administrative and Sales Expense

Product Services Expense

Bad Debts

Total Operating Expenses

Operating Income

Interest Expense, net

Other Income/(Expense)

Income Before Taxes

Income Tax Expense/(Benefit)

Net Income
$



2



HHG Distributing LLC
 
DEBTORS AND DEBTORS IN POSSESSION
 
Condensed Consolidated Balance Sheet (unaudited)
 
 
 As of
(In Thousands)
11/30/2020
Assets
 
Cash
$

Credit Card and Trade Accounts Receivable, Net

Accounts Receivable - Other

Merchandise Inventories

Prepaid Expenses and Other Assets

Income Taxes Receivable

Total Current Assets

Property and Equipment, Net

Capitalized Financing Fees, Net

Goodwill

Trademarks, Net

Other Assets, Net

Total Assets
$                                  —

Liabilities and Stockholders' Deficit
 
Accounts Payable

Outstanding Customer Deposits, Credits, Refunds

Unredeemed Gift Card Liability

Other Accrued Expenses

Deferred Tax Liability

DIP Loans

Total Current Liabilities
$                                  —

Deferred Rent

LT Deferred Compensation

Other Long-term Liabilities

Liabilities Subject to Compromise
$

Total Liabilities

  Preferred Stock

Common Stock

Retained Earnings / (Accumulated Deficit)

Treasury Stock

Additional Paid-in Capital

Total Stockholders' Deficit
$                                  —

Total Liabilities and Stockholders' Deficit
$


 


3





HHG Distributing LLC
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
$



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 Line of Credit

 



Increase/(decrease) in cash and cash equivalents



Cash and cash equivalents at beginning of period



Cash and cash equivalents at end of period
$


 

4


HHG Distributing LLC
 
 
 
 
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
HHG Distributing LLC
 
17-01304-11
 
$                  —



 

 
5


HHG Distributing LLC
 
 
 
 
DEBTORS AND DEBTORS IN POSSESSION
 
 
 
 
Bank Reconciliations (unaudited)