OFFICE OF THE UNITED STATES TRUSTEE

CENTRAL DISTRICT OF CALIFORNIA

In Re:		CHAPTER 11 (BUSINESS)
USDC TUCHMAN INDIANA, INC.
		Case Number:	8:10-bk-12736
		Operating Report Number:	8
	Debtor(s).	For the Month Ending:	10/31/2010

I. CASH RECEIPTS AND DISBURSEMENTS

A. (GENERAL ACCOUNT)

1. TOTAL RECEIPTS PER ALL PRIOR GENERAL ACCOUNT REPORTS				4,347,695.05

2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR GENERAL				4,260,842.91
ACCOUNT REPORTS

3. BEGINNING BALANCE:				86,852.14

4. RECEIPTS DURING CURRENT PERIOD:
	Accounts Receivable - Post-filing		660,636.19
	Accounts Receivable - Pre-filing		0.00
	General Sales		0.00
	Other (Specify)	Transfers between DIP	1,500.00
	Other (Specify)	DIP Financing	53,029.36

	TOTAL RECEIPTS THIS PERIOD:			715,165.55

5. BALANCE:				802,017.69

6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
	Transfers to Other DIP Accounts (from page 2)		243,500.00
	Disbursements (from page 2)		464,653.29

	TOTAL DISBURSEMENTS THIS PERIOD:			708,153.29

7. ENDING BALANCE:				93,864.40

8. General Account Number(s):			870626298, 887481521

Depository Name & Location:			JPMorgan Chase Bank
			PO Box 659754
			San Antonio, TX 78265

Page 1 of 16

TOTAL DISBURSEMENTS FROM GENERAL ACCOUNT FOR CURRENT PERIOD

Date mm/dd/yyyy	Check Number	Payee or DIP account	Purpose	Amount Transferred		Amount Disbursed		Amount
October 2010		See Exhibit I for detail	October disbursements				11,803.91		11,803.91
October 2010		See Exhibit I for detail	October transfers		0.00				0.00
October 2010		See Exhibit II for detail	October disbursements				452,849.38		452,849.38
October 2010		See Exhibit II for detail	October transfers		243,500.00				243,500.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
									0.00
			TOTAL DISBURSEMENTS THIS PERIOD:		243,500.00		464,653.29		708,153.29

Page 2 of 16

GENERAL ACCOUNT
BANK RECONCILIATION

	Bank Statement Date:	10/31/2010	Balance on Statement:	74,908.53

Plus deposits in transit (a):
		Deposit Date	Deposit Amount
	Deposits from Chase Acc # 870626298 are
	set forth on Exhibit III and total $70,597.85		94,207.89	See Exhibit III




TOTAL DEPOSITS IN TRANSIT				94,207.89

Less Outstanding Checks (a):
	Check Number	Check Date	Check Amount
	Checks from Chase Acc # 870626298 are set
	forth on Exhibit IV and total $48,536.69		74,213.16	See Exhibit IV
	Checks from Chase Acc # 887481521 are set
	forth on Exhibit V and total $1,038.86		1,038.86	See Exhibit V




















TOTAL OUTSTANDING CHECKS:				75,252.02

Bank statement Adjustments:
Explanation of Adjustments-

ADJUSTED BANK BALANCE:				93,864.40

Page 3 of 16

I. CASH RECEIPTS AND DISBURSEMENTS
B. (PAYROLL ACCOUNT)

1. TOTAL RECEIPTS PER ALL PRIOR PAYROLL ACCOUNT REPORTS		1,001.00

2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR PAYROLL		916.80
ACCOUNT REPORTS

3. BEGINNING BALANCE:		84.20

4. RECEIPTS DURING CURRENT PERIOD:		16,982.58
(Transferred from General Account)		242,000.00

5. BALANCE:		259,066.78

6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
TOTAL DISBURSEMENTS THIS PERIOD:		276,602.50

7. ENDING BALANCE: (FN1)		(17,535.72)

8. PAYROLL Account Number(s):	887481505

Depository Name & Location:	JPMorgan Chase Bank
	PO Box 659754
	San Antonio, TX 78265

(FN1) Funds were transferred into the account by the debtor early in November and all payroll checks cleared when presented by employees.

Page 4 of 16

TOTAL DISBURSEMENTS FROM PAYROLL ACCOUNT FOR CURRENT PERIOD

Date mm/dd/yyyy	Check Number	Payee	Purpose	Amount
October 2010		See Exhibit I for detail	October disbursements		276,602.50





































			TOTAL DISBURSEMENTS THIS PERIOD:		276,602.50

[A] The debtor was in the process of segregating its payroll processing by division/debtor. Until such time payroll was processed on a consolidated basis. This change occurred in October 2010.

Page 5 of 16

PAYROLL ACCOUNT
BANK RECONCILIATION

	Bank Statement Date:	10/31/2010	Balance on Statement:	$	11,446.67

Plus deposits in transit (a):
		Deposit Date	Deposit Amount
		N/A





TOTAL DEPOSITS IN TRANSIT				0.00

Less Outstanding Checks (a):
	Check Number	Check Date	Check Amount
	Checks from Chase Acc # 887481505 are set
	forth on Exhibit IV and total $28,982.39		28,982.39	See Exhibit VII






















TOTAL OUTSTANDING CHECKS:				28,982.39

Bank statement Adjustments:
Explanation of Adjustments-

ADJUSTED BANK BALANCE:				(17,535.72)

Page 6 of 16

I. CASH RECEIPTS AND DISBURSEMENTS
C. (TAX ACCOUNT)

1. TOTAL RECEIPTS PER ALL PRIOR TAX ACCOUNT REPORTS		100.00

2. LESS: TOTAL DISBURSEMENTS PER ALL PRIOR TAX		24.00
ACCOUNT REPORTS

3. BEGINNING BALANCE:		76.00

4. RECEIPTS DURING CURRENT PERIOD:		0.00
(Transferred from General Account)

5. BALANCE:		76.00

6. LESS: TOTAL DISBURSEMENTS DURING CURRENT PERIOD
TOTAL DISBURSEMENTS THIS PERIOD:		12.00

7. ENDING BALANCE:		64.00

8. TAX Account Number(s):	887481513

Depository Name & Location:	JPMorgan Chase Bank
	PO Box 659754
	San Antonio, TX 78265

Page 7 of 16

TOTAL DISBURSEMENTS FROM TAX ACCOUNT FOR CURRENT PERIOD

Date mm/dd/yyyy	Check Number	Payee	Purpose	Amount
10/31/2010	NA	Chase	Bank service charge		12.00








































			TOTAL DISBURSEMENTS THIS PERIOD:		12.00

Page 8 of 16

TAX ACCOUNT
BANK RECONCILIATION

	Bank Statement Date:	10/31/2010	Balance on Statement:	$	64.00

Plus deposits in transit (a):
		Deposit Date	Deposit Amount
		N/A





TOTAL DEPOSITS IN TRANSIT				0.00

Less Outstanding Checks (a):
	Check Number	Check Date	Check Amount
		N/A























TOTAL OUTSTANDING CHECKS:				0.00

Bank statement Adjustments:
Explanation of Adjustments-

ADJUSTED BANK BALANCE:				64.00

Page 9 of 16

I. D SUMMARY SCHEDULE OF CASH

ENDING BALANCES FOR THE PERIOD:

		General Account:	93,864.40
		Payroll Account:	(17,535.72)
		Tax Account:	64.00
*Other Accounts:	NONE		0.00
			0.00
			0.00
*Other Monies:	NONE		0.00
		Petty Cash (from below):	5,100.00

TOTAL CASH AVAILABLE:				81,492.68

Petty Cash Transactions:
Date	Purpose		Amount
3/31/2010	Beginning balance		5,100.00






















TOTAL PETTY CASH TRANSACTIONS:				5,100.00

Page 10 of 16

II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS
AND OTHER PARTIES TO EXECUTORY CONTRACTS

Creditor, Lessor, Etc.	Frequency of Payments (Mo/Qtr)	Amount of Payment		Post-Petition payments not made (Number)		Total Due
Setal and related entities (secured creditors)(FN1)	N/A. Debt matured pre-petition		N/A		N/A
Alan L. Sochacki and Gisele Sochacki, LLC	Monthly		2,750.00		0		0.00
DH Realty, LLC	Monthly		2,771.71		0		0.00
Oak Center, LLC	Monthly		3,856.00		0		0.00
Gerald Klapper	Monthly		3,653.64		0		0.00
Southport Associates, LLC	Monthly		2,000.00		0		0.00
T-L Shadeland Station, LLC	Monthly		2,020.47		0		0.00
Valtesi I, LLC	Monthly		2,250.00		0		0.00
Merchants 450, LLC	Monthly		5,093.54		0		0.00
G & J	Monthly		2,494.00		0		0.00
Cranfill Development Company	Monthly		4,175.25		0		0.00
Glendale Partners of Shadeland Crossing, LLC	Monthly		1,817.50		0		0.00
S & N Realty	Monthly		1,814.09		0		0.00
Franklin Shopping Plaza, LP	Monthly		1,820.00		0		0.00
TKC Properties, LLC	Monthly		1,870.00		0		0.00
86th & Ditch Road Realty Co.	Monthly		2,287.03		0		0.00
Harris FLP	Monthly		4,867.33		0		0.00
Flynn & Zinkan Holdings, LLC	Monthly		4,736.00		0		0.00
Nora Improvements, LLC (FN2)	Monthly		2,548.73		2		6,476.32
See attached schedule for remaining leases				TOTAL DUE:			21,286.72

(FN1) - All of the Debtors are jointly and severally liable for Setal debt, which for convenience is listed in detail on the Monthly report for U.S. Dry Cleaning Services

(FN2) This lease has been renegotiated. The Debtor and landlord agree that all payments will be made according to the completed and executed documents.

III. TAX LIABILITIES

FOR THE REPORTING PERIOD:

		Gross Sales Subject to Sales Tax:		0.00
		Total Wages Paid:		274,577.27

		Total Post-Petition Amounts Owing	Amount Delinquent	Date Delinquent Amount Due
(FN3)	Federal Withholding	12,355.95	12,355.95	3/31/2010
(FN3)	State Withholding	7,370.23	7,370.23	3/31/2010
(FN3)	FICA- Employer's Share	12,756.46	12,756.46	3/31/2010
(FN3)	FICA- Employee's Share	12,756.60	12,756.60	3/31/2010
(FN3)	Federal Unemployment	1,074.39	1,074.39	3/31/2010
(FN3)	State Unemployment	3,626.16	3,626.16	3/31/2010
	Real Property	13,835.64	0.00
Other:	Personal Property	14,921.05	0.00
	TOTAL:	78,696.48	49,939.79

(FN3) - The Debtors discovered in November that payroll taxes for certain entities were not paid for the month of March 2010. The Debtor filed bankruptcy on March 4, 2010, and beginning at the end of March, the Debtors began using a payroll company. The Debtors still use a payroll company, which makes pre-funded payroll tax payments directly to the taxing authorities.

Page 11 of 16

II. STATUS OF PAYMENTS TO SECURED CREDITORS, LESSORS
AND OTHER PARTIES TO EXECUTORY CONTRACTS

Creditor, Lessor, Etc.	Frequency of Payments (Mo/Qtr)	Amount of Payment		Post-Petition payments not made (Number)		Total Due
Glendale Partners at Lantern Crossing, LLC	Monthly		4,212.48		0		0.00
Daum Investment Corp.	Monthly		2,125.00		0		0.00
Donald J. Tharp and Marsha J. Tharp	Monthly		2,000.00		0		0.00
Sunbeam Development Corp.	Monthly		2,817.75		0		0.00
Brownsburg Management Group, Ltd.	Monthly		1,984.00		0		0.00
Brookschool Plaza, LLP	Monthly		2,801.67		0		0.00
First Industrial LP	Monthly		4,235.84		0		0.00
TERRE Carmel East. LLC - Rejected Lease (FN1)	Monthly		2,962.08		5		14,810.40











(FN1) - This lease was rejected by the Debtor at the end of May 2010. The Debtor owes lease payments for March, April, May, June and July.

Page 11a of 16

IV. AGING OF ACCOUNTS PAYABLE AND RECEIVABLE

			Accounts Payable	Accounts Receivable
			Post-Petition	Pre-Petition	Post-Petition
		30 days or less	89,298.32	0.00	184,225.82
		31 - 60 days	22,202.25	0.00	4,125.33
		61 - 90 days	(60.69)	0.00	342.92
		91 - 120 days	(2,850.33)	0.00	185.50
		Over 120 days	0.00	0.00	0.00
		TOTAL:	108,589.55	0.00	188,879.57

V. INSURANCE COVERAGE

	(FN1)	Name of Carrier	Amount of Coverage	Policy Expiration Date	Premium Paid Through (Date)
	Workers Compensation	Argo	1,000,000	5/31/2011	10/31/2010
	Automobile	Argo	Included	9/30/2010	10/31/2010
	Umbrella	Argo	5,000,000	9/30/2010	10/31/2010

Others:


VI. UNITED STATES TRUSTEE QUARTERLY FEES
(TOTAL PAYMENTS)

Quarterly Period Ending (Date)	Total Disbursements	Quarterly Fees	Date Paid	Amount Paid	Quarterly Fees Still Owing
3/31/2010	708,153.29	4,875.00	5/11/10	4,875.00	0.00
6/30/2010	1,868,721.11	6,500.00	7/30/10	6,500.00	0.00
9/30/2010	1,798,727.38	6,500.00	10/26/10	6,500.00	0.00
					0.00
					0.00
					0.00
					0.00
					0.00
					0.00
					0.00
					0.00
					0.00
					0.00
					0.00
					0.00
					0.00
		17,875.00		17,875.00	0.00

(FN1) The debtor believes the amount due for insurance, except for health, is $0 based on the amount of credits due from the carrier primarily from work compensation insurance overpayments.

Page 12 of 16

VII SCHEDULE OF COMPENSATION PAID TO INSIDERS

Name of Insider	Date of Order Authorizing Compensation	Authorized Gross Compensation	Gross Compensation Paid During the Month
NONE

VIII. SCHEDULE OF OTHER AMOUNTS PAID TO INSIDERS

Name of Insider	Date of Order Authorizing Compensation	Description	Amount Paid During the Month
NONE

Page 13 of 16

IX. PROFIT AND LOSS STATEMENT
(ACCRUAL BASIS ONLY)

	Current Month		Cumulative Post-Petition
Sales/Revenue:
Gross Sales/Revenue		639,347.05		4,885,024.34
Less: Returns/Discounts		4,195.19		24,995.68
Net Sales/Revenue		635,151.86		4,860,028.66

Cost of Goods Sold:
Beginning Inventory at cost		49,025.10		29,668.71
Purchases		32,127.10		254,898.02
Less: Ending Inventory at cost		47,619.37		47,619.37
Cost of Goods Sold (COGS)		33,532.83		236,947.36

Gross Profit		601,619.03		4,623,081.30

Other Operating Income (Itemize)		0.00		0.00

Operating Expenses:
Payroll - Insiders		0.00		0.00
Payroll - Other Employees		274,577.27		2,098,309.94
Payroll Taxes		19,885.81		181,783.68
Other Taxes (Itemize)		0.00		6,770.75
Depreciation and Amortization		17,861.69		140,792.09
Rent Expense - Real Property		73,228.10		613,894.17
Lease Expense - Personal Property		1,991.38		7,535.97
Insurance		23,807.96		195,167.17
Real Property Taxes		4,024.23		30,650.09
Telephone and Utilities		46,757.48		353,607.34
Repairs and Maintenance		17,673.32		96,845.54
Travel and Entertainment (Itemize)		0.00		7,627.84
Miscellaneous Operating Expenses (Itemize)		58,079.22		453,586.05
Total Operating Expenses		537,886.46		4,186,570.63

Net Gain/(Loss) from Operations		63,732.57		436,510.67

Non-Operating Income:
Interest Income		0.00		450.00
Net Gain on Sale of Assets (Itemize)		0.00		0.00
Other (Itemize)		0.00		0.00
Total Non-Operating income		0.00		450.00

Non-Operating Expenses:
Interest Expense		0.00		230.84
Legal and Professional (Itemize)		6,500.00		32,625.00
Other (Itemize)		55,200.00		407,235.39
Total Non-Operating Expenses		61,700.00		440,091.23

NET INCOME/(LOSS)		2,032.57		(3,130.56	)

Page 14 of 16

X. BALANCE SHEET
(ACCRUAL BASIS ONLY)

	Current Month End
ASSETS
Current Assets:
Unrestricted Cash		81,492.68
Restricted Cash		0.00
Accounts Receivable		188,879.57
Inventory		47,619.37
Notes Receivable		0.00
Prepaid Expenses		42,591.29
Other (Itemize)		966.56
Total Current Assets				361,549.47

Property, Plant, and Equipment		1,448,745.01
Accumulated Depreciation/Depletion		(420,354.05	)
Net Property, Plant, and Equipment				1,028,390.96

Other Assets (Net of Amortization):
Due from Insiders		0.00
Other (Itemize)		1,498,503.84
Total Other Assets				1,498,503.84

TOTAL ASSETS				2,888,444.27

LIABILITIES
Post-petition Liabilities:
Accounts Payable		108,589.55
Taxes Payable		78,696.48
Notes Payable		0.00
Professional fees		0.00
Secured Debt		0.00
Other (Itemize)		178,038.31
Total Post-petition Liabilities				365,324.34

Pre-petition Liabilities:
Secured Liabilities		0.00
Priority Liabilities		0.00
Unsecured Liabilities		592,358.15
Other (Itemize)		0.00
Total Pre-petition Liabilities				592,358.15

TOTAL LIABILITIES				957,682.49

EQUITY:
Pre-petition Owners’ Equity		1,933,892.34
Post-petition Profit/(Loss)		(3,130.56	)
Direct Charges to Equity		0.00
TOTAL EQUITY				1,930,761.78

TOTAL LIABILITIES & EQUITY				2,888,444.27

Page 15 of 16

XI. QUESTIONNAIRE

		No	Yes
1.	Has the debtor-in-possession made any payments on its pre-petition unsecured debt, except as have been authorized by the court? If "Yes", explain below:	X
	N/A

		No	Yes
2.	Has the debtor-in-possession during this reporting period provided compensation or remuneration to any officers, directors, principals, or other insiders without appropriate authorization? If "Yes", explain below:	X
	N/A

3.	State what progress was made during the reporting period toward filing a plan of reorganization
	The Debtor and its management continue to formulate the Debtor's plan of reorganization.

4.	Describe potential future developments which may have a significant impact on the case:
	There is a pending motion to appoint a chapter 11 trustee. If that motion is granted, it would significantly impact this case. The current hearing has been continued to December of 2010. The Debtor (and its related entities) are in the process of attempting to raise exit financing with their investment banker, National Securities Corp.

5.	Attach copies of all Orders granting relief from the automatic stay that were entered during the reporting period.
	N/A

		No	Yes
6.	Did you receive any exempt income this month, which is not set forth in the operating report? If "Yes", please set forth the amounts and sources of the income below.	X
	N/A

I,	Robert Lee, Chief Executive Officer
	declare under penalty of perjury that I have fully read and understood the foregoing debtor-in-possession operating report and that the information contained herein is true and complete to the best of my knowledge.

	11/22/10		/s/ Robert Lee
	Date		Principal for debtor-in-possession

Page 16 of 16