California | 0-21296 | 95-3759463 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
3450 East Miraloma Avenue Anaheim, CA | 92806-2101 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a–12 under the Exchange Act (17 CFR 240.14a–12) |
o | Pre–commencement communications pursuant to Rule 14d–2(b) under the Exchange Act (17 CFR 240.14d–2(b)) |
o | Pre–commencement communications pursuant to Rule 13e–4(c) under the Exchange Act (17 CFR 240.13e–4(c)) |
Item 7.01 | Regulation FD Disclosure. |
Item 9.01 | Financial Statements and Exhibits. |
PACIFIC SUNWEAR OF CALIFORNIA, INC. | |
/s/ CRAIG E. GOSSELIN | |
Craig E. Gosselin Senior Vice President, General Counsel and Human Resources |
EXHIBIT NUMBER | DESCRIPTION | |
99.1 | Initial Monthly Operating Report |
UNITED STATES BANKRUPTCY COURT | ||
DISTRICT OF DELAWARE | ||
In re Pacific Sunwear of California, Inc., et al. | Case No. 16-10882 (LSS) | |
Debtor | ||
INITIAL MONTHLY OPERATING REPORT | ||
File report and attachments with Court and submit copy to United States Trustee within 15 days after order for relief. | ||
Certificates of insurance must name United States Trustee as a party to be notified in the event of policy cancellation. | ||
Bank accounts and checks must bear the name of the debtor, the case number, and the designation "Debtor in Possession." | ||
Examples of acceptable evidence of Debtor in Possession Bank accounts include voided checks, copy of bank deposit | ||
agreement/certificate of authority, signature card, and/or corporate checking resolution. | ||
Document | Explanation | |
REQUIRED DOCUMENTS | Attached | Attached |
12-Month Cash Flow Projection (Form IR-1) | DIP Budget Attached | |
Certificates of Insurance: | ||
Workers Compensation | Attached | |
Property | Attached | |
General Liability | Attached | |
Vehicle | Attached | |
Other:____________________ | ||
Identify areas of self-insurance w/liability caps | ||
Evidence of Debtor in Possession Bank Accounts | ||
Tax Escrow Account | Cash Management Order Attached | |
General Operating Account | Cash Management Order Attached | |
Money Market Account pursuant to Local Rule 4001-3. Refer to | Cash Management Order Attached | |
http://www.deb.uscourts.gov/ | ||
Other:_________________________________ | ||
Retainers Paid (Form IR-2) | Attached | |
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. | ||
/s/ Christopher R. Tedford | 4/21/2016 | |
Signature of Debtor | Date | |
/s/ Christopher R. Tedford | 4/21/2016 | |
Signature of Joint Debtor | Date | |
/s/ Christopher R. Tedford | 4/21/2016 | |
Signature of Authorized Individual* | Date | |
Christopher R. Tedford | VP and Interim Chief Financial Officer | |
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. |
Project Surf | |||||||||||||||||||
Cash Flow Forecast | |||||||||||||||||||
($ in 000's) | |||||||||||||||||||
4-5-4 Month | Apr | Apr | Apr | May | May | May | May | Jun | Jun | Jun | Jun | Jun | Jul | ||||||
Week Ending | 16-Apr | 23-Apr | 30-Apr | 7-May | 14-May | 21-May | 28-May | 4-Jun | 11-Jun | 18-Jun | 25-Jun | 2-Jul | 9-Jul | ||||||
Fiscal Week | Week 1 | Week 2 | Week 3 | Week 4 | Week 5 | Week 6 | Week 7 | Week 8 | Week 9 | Week 10 | Week 11 | Week 12 | Week 13 | 13 Week | |||||
Forecast / Actual | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast | Total | |||||
I. CASH FLOW | |||||||||||||||||||
Cash Receipts | |||||||||||||||||||
1) | Sales Receipts | 13,626 | 13,399 | 11,022 | 11,189 | 11,935 | 13,899 | 15,640 | 15,527 | 15,730 | 15,458 | 15,588 | 16,704 | 15,396 | 185,111 | ||||
2) | Other Receipts | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
3) | Total Cash Receipts | 13,626 | 13,399 | 11,022 | 11,189 | 11,935 | 13,899 | 15,640 | 15,527 | 15,730 | 15,458 | 15,588 | 16,704 | 15,396 | 185,111 | ||||
Cash Disbursements | |||||||||||||||||||
Operating | |||||||||||||||||||
4) | Merchandise Vendor Payments | (3,216) | (6,623) | (6,159) | (6,160) | (5,988) | (4,072) | (6,362) | (5,258) | (9,366) | (5,638) | (8,183) | (7,815) | (11,566) | (86,407 | ) | |||
5) | Payroll, Payroll Taxes, and Benefits | (450) | (5,315) | (250) | (5,422) | (250) | (5,422) | (250) | (5,513) | (200) | (5,513) | (200) | (5,513) | (250) | (34,549 | ) | |||
6) | Rent and Occupancy | 0 | 0 | 0 | (11,275) | 0 | 0 | 0 | (11,595) | 0 | 0 | 0 | 0 | (10,012) | (32,882 | ) | |||
7) | Freight & Customs | (325) | (807) | (334) | (265) | (217) | (2,715) | (266) | (243) | (209) | (387) | (2,076) | (342) | (395) | (8,579 | ) | |||
8) | Capital Expenditures | 0 | (546) | (546) | (820) | (820) | (275) | (275) | (487) | (487) | (487) | (487) | (487) | (330) | (6,046 | ) | |||
9) | Sales Tax Remittance | (254) | (2,153) | (1,318) | (351) | (174) | (1,474) | (902) | (79) | (109) | (506) | (2,035) | (409) | (549) | (10,312 | ) | |||
10) | Store Advertising | (439) | (74) | (140) | (722) | (276) | (177) | (143) | (267) | (371) | (149) | (180) | (143) | (414) | (3,495 | ) | |||
11) | Other Disbursements | (2,500) | (2,078) | (1,225) | (1,426) | (1,162) | (1,012) | (1,152) | (1,011) | (1,903) | (1,008) | (1,048) | (937) | (1,037) | (17,500 | ) | |||
12) | Total Operating Disbursements | (7,183) | (17,596) | (9,971) | (26,441) | (8,887) | (15,147) | (9,350) | (24,454) | (12,645) | (13,689) | (14,208) | (15,646) | (24,554) | (199,771 | ) | |||
Financing | |||||||||||||||||||
13) | Revolver Interest | 0 | 0 | 0 | (89) | 0 | 0 | 0 | (120) | 0 | 0 | 0 | 0 | (157) | (366 | ) | |||
14) | Other Interest and Fees | (1,000) | 0 | (1,759) | 0 | 0 | 0 | (216) | 0 | 0 | 0 | (216) | 0 | 0 | (3,191 | ) | |||
15) | Total Financing Disbursements | (1,000) | 0 | (1,759) | (89) | 0 | 0 | (216) | (120) | 0 | 0 | (216) | 0 | (157) | (3,557 | ) | |||
Chapter 11 Disbursements | |||||||||||||||||||
16) | Indemnification Escrow Funding | (500) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (500 | ) | |||
17) | Credit Card Holdback | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
18) | Utility Deposits | 0 | 0 | (500) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (500 | ) | |||
19) | Professional Fees / Retainers | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,318) | 0 | 0 | (1,318 | ) | |||
20) | Total Chapter 11 Disbursements | (500) | 0 | (500) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,318) | 0 | 0 | (2,318 | ) | |||
21) | Total Disbursements | (8,683) | (17,596) | (12,230) | (26,530) | (8,887) | (15,147) | (9,566) | (24,573) | (12,645) | (13,689) | (15,743) | (15,646) | (24,712) | (205,647 | ) | |||
22) | Net Cash Flow Before Borrowing/(Pay down) | 4,943 | (4,197) | (1,208) | (15,341) | 3,048 | (1,248) | 6,074 | (9,047) | 3,085 | 1,769 | (154) | 1,058 | (9,316) | (20,536 | ) | |||
23) | Starting Est. Book Available Cash | 1,430 | 872 | 1,675 | 1,467 | (3,874) | 1,673 | 1,426 | 999 | (4,047) | 1,537 | 1,306 | 1,152 | 1,210 | 1,430 | ||||
24) | Add: Net Cash Flow Before Borrowings | 4,943 | (4,197) | (1,208) | (15,341) | 3,048 | (1,248) | 6,074 | (9,047) | 3,085 | 1,769 | (154) | 1,058 | (9,316) | (20,536 | ) | |||
25) | Revolver Principal Borrowings / (Pay downs) | (5,500) | 5,000 | 1,000 | 10,000 | 2,500 | 1,000 | (6,500) | 4,000 | 2,500 | (2,000) | 0 | (1,000) | 4,500 | 15,500 | ||||
26) | Adjustment for Voided Checks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
27) | Ending Est. Book Available Cash | 872 | 1,675 | 1,467 | (3,874) | 1,673 | 1,426 | 999 | (4,047) | 1,537 | 1,306 | 1,152 | 1,210 | (3,606) | (3,606 | ) | |||
28) | Add: Est. Outstanding Checks | 150 | 150 | 150 | 5,788 | 150 | 150 | 150 | 5,948 | 150 | 150 | 150 | 150 | 5,156 | 5,156 | ||||
29) | Ending Est. Bank Available Cash | 1,022 | 1,825 | 1,617 | 1,913 | 1,823 | 1,576 | 1,149 | 1,900 | 1,687 | 1,456 | 1,302 | 1,360 | 1,550 | 1,550 | ||||
II. FINANCING | |||||||||||||||||||
30) | Pre-Petition ABL Beginning Balance | 29,000 | 15,374 | 1,975 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 29,000 | ||||
31) | Cash Receipts | (13,626) | (13,399) | (1,975) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (29,000 | ) | |||
32) | Ending Pre-Petition Revolver Balance | 15,374 | 1,975 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
33) | DIP Revolver Beginning Balance | 0 | 8,126 | 26,525 | 29,500 | 39,500 | 42,000 | 43,000 | 36,500 | 40,500 | 43,000 | 41,000 | 41,000 | 40,000 | 0 | ||||
33) | Cash Receipts | 0 | 0 | (9,046) | (11,189) | (11,935) | (13,899) | (15,640) | (15,527) | (15,730) | (15,458) | (15,588) | (16,704) | (15,396) | (156,111) | ||||
34) | Cash Disbursements (book) | 8,683 | 17,596 | 12,230 | 26,530 | 8,887 | 15,147 | 9,566 | 24,573 | 12,645 | 13,689 | 15,743 | 15,646 | 24,712 | 205,647 | ||||
34) | Change in Bank Cash | (407) | 803 | (208) | 296 | (90) | (248) | (426) | 751 | (213) | (231) | (154) | 58 | 190 | 120 | ||||
35) | Change in Check Float | (150) | 0 | 0 | (5,638) | 5,638 | 0 | 0 | (5,798) | 5,798 | 0 | 0 | 0 | (5,006) | (5,156 | ) | |||
35) | Ending DIP Revolver Balance - Funded | 8,126 | 26,525 | 29,500 | 39,500 | 42,000 | 43,000 | 36,500 | 40,500 | 43,000 | 41,000 | 41,000 | 40,000 | 44,500 | 44,500 | ||||
36) | Add: LCs and Accrued Interest | 9,549 | 9,567 | 9,589 | 9,523 | 9,554 | 9,586 | 10,620 | 10,528 | 10,560 | 10,593 | 10,625 | 10,657 | 10,531 | 10,531 | ||||
37) | Ending DIP Revolver Balance - Total | 17,675 | 36,092 | 39,089 | 49,023 | 51,554 | 52,586 | 47,120 | 51,028 | 53,560 | 51,593 | 51,625 | 50,657 | 55,031 | 55,031 | ||||
III. AVAILABILITY | |||||||||||||||||||
38) | Gross Remaining Availability | 34,802 | 26,983 | 30,562 | 18,741 | 17,099 | 15,720 | 19,856 | 20,856 | 16,062 | 18,078 | 19,930 | 24,750 | 16,505 | 16,505 | ||||
39) | Less: Minimum Availability Covenant | (7,500) | (7,500) | (7,500) | (7,500) | (7,500) | (7,500) | (7,500) | (7,500) | (7,500) | (7,500) | (7,500) | (7,541) | (7,500) | (7,500 | ) | |||
40) | Total Availability (excl Block) | 27,302 | 19,483 | 23,062 | 11,241 | 9,599 | 8,220 | 12,356 | 13,356 | 8,562 | 10,578 | 12,430 | 17,210 | 9,005 | 9,005 | ||||
41) | Ending Est. Bank Available Cash | 1,022 | 1,825 | 1,617 | 1,913 | 1,823 | 1,576 | 1,149 | 1,900 | 1,687 | 1,456 | 1,302 | 1,360 | 1,550 | 1,550 | ||||
42) | Total Liquidity / (Additional Financing Need) | 28,324 | 21,308 | 24,679 | 13,154 | 11,422 | 9,796 | 13,506 | 15,256 | 10,250 | 12,034 | 13,732 | 18,569 | 10,555 | 10,555 | ||||
43) | Consolidated Pro Fee Roll Forward | ||||||||||||||||||
44) | Beginning Balance | 0 | 985 | 1,539 | 2,093 | 2,657 | 3,195 | 3,733 | 4,271 | 4,731 | 5,192 | 5,652 | 4,794 | 5,254 | 0 | ||||
45) | Accruals - Case Professionals | 864 | 433 | 433 | 470 | 443 | 443 | 443 | 382 | 382 | 382 | 382 | 382 | 428 | 5,868 | ||||
46) | Accruals - Other Professionals | 121 | 121 | 121 | 95 | 95 | 95 | 95 | 78 | 78 | 78 | 78 | 78 | 95 | 1,227 | ||||
47) | Payments - Case Professionals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,024) | 0 | 0 | (1,024 | ) | |||
48) | Payments - Other Professionals | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (295) | 0 | 0 | (295 | ) | |||
49) | Ending Balance | 985 | 1,539 | 2,093 | 2,657 | 3,195 | 3,733 | 4,271 | 4,731 | 5,192 | 5,652 | 4,794 | 5,254 | 5,777 | 5,777 |
Pacific Sunwear of California, Inc. | |||||
Insurance Policies | |||||
# | Cert Document | Last 4 Digits | Carrier | Type | Broker |
1 | 1 | 0004 | Ace American Insurance Co. | Foreign Commercial | Marsh |
2 | 2 | 0201 | Lloyd’s | Cyber Security and Privacy | Marsh |
3 | 2 | 7011 | ACE American Insurance Co. | Commercial Crime | Marsh |
4 | 2 | 8408 | Travelers Casualty and Surety Co. of America | Fiduciary | Marsh |
5 | 3 | 3613 | Safety National Casualty Corp. | General Liability | Marsh |
6 | 3 | 3616 | Safety National Casualty Corp. | Commercial Auto | Marsh |
7 | 3 | 2485 | Fireman’s Fund Insurance Co. | Umbrella | Marsh |
8 | 3 | 3615 | Safety National Casualty Corp. | Workers’ Compensation | Marsh |
9 | 4 | X051 | AFM | All-Risk Property | Marsh |
10 | 5 | 0900 | AGCS Marine Insurance Co. | Marine Cargo | Marsh |
11 | 6 | 0999 | Continental Casualty Co. | D&O | Woodruff |
12 | 6 | 9300 | Endurance Risk Solutions Assurance Co. | D&O | Woodruff |
13 | 6 | 6865 | National Union Fire Insurance Co. of Pittsburgh, PA | D&O | Woodruff |
14 | 6 | 4671 | Berkley Insurance Co. | D&O | Woodruff |
15 | 6 | 3115 | Hudson Insurance Co. | D&O | Woodruff |
16 | 6 | 4587 | Federal Insurance Co. | D&O | Woodruff |
17 | 6 | 7057 | National Union Fire Insurance Co. of Pittsburgh, PA | D&O | Woodruff |
18 | 7 | 2188 | The Princeton Excess and Surplus Lines Insurance Co. | Difference in Condition | Marsh |
Certificates of Insurance for the listed policies have been provided to the United States Trustee and will be made available upon reasonable request. |
In re PACIFIC SUNWEAR OF CALIFORNIA, INC., a California corporation, et al., 1 Debtors. | Chapter 11 Case No.: 16-10882 (LSS) (Jointly Administered) Re Docket No. 6 |
1 | The Debtors and the last four digits of their respective federal taxpayer identification numbers are as follows: Pacific Sunwear of California, Inc. (9463-CA); Miraloma Borrower Corporation (0381-Del.); and Pacific Sunwear Stores Corp. (5792-CA). The Debtors’ address is 3450 East Miraloma Avenue, Anaheim, CA 92806. |
2 | Capitalized terms used but not otherwise defined herein shall have the meaning ascribed to such terms in the Motion. |
Last 4 Digits of Account # | Bank Name | Account Name | Account Type |
8615 | Wells Fargo | Pacific Sunwear of California, Inc. | Master Operating Account |
1892 | Wells Fargo | Pacific Sunwear Stores Corp. | Store Depository Account |
2310 | Wells Fargo | Pacific Sunwear of California, Inc. | PacSun Depository Account |
7348 | Wells Fargo | Pacific Sunwear of California, Inc. | Controlled Disbursement Account |
7333 | Wells Fargo | Pacific Sunwear Stores Corp. | Controlled Disbursement Account |
2351 | Wells Fargo | Pacific Sunwear of California, Inc. | Corp. Payroll Disbursement Account |
2344 | Wells Fargo | Pacific Sunwear Stores Corp. | Store Payroll Disbursement Account |
2377 | Wells Fargo | Pacific Sunwear Stores Corp. | Store Flex Spending Disbursement Account |
2385 | Wells Fargo | Pacific Sunwear of California, Inc. | Corp Flex Spending Disbursement Account |
7297 | Wells Fargo | Pacific Sunwear of California, Inc. | Benefits, AETNA Disbursement Account |
2419 | Wells Fargo | Pacific Sunwear Stores Corp. | PacSun.com E-Commerce Account |
2336 | Wells Fargo | Pacific Sunwear Stores Corp. | Amex Credit Card Account |
2435 | Wells Fargo | Pacific Sunwear Stores Corp. | Paypal E-Commerce Account |
3423 | Wells Fargo | Pacific Sunwear Stores Corp. | V. Me E-Commerce Account |
2427 | Wells Fargo | Pacific Sunwear Stores Corp. | Private Label Account |
2393 | Wells Fargo | Pacific Sunwear Stores Corp. | Amex Intel. Credit Card Account |
2328 | Wells Fargo | Pacific Sunwear Stores Corp. | Visa/MC Credit Card Account |
2401 | Wells Fargo | Pacific Sunwear Stores Corp. | Discover Credit Card Account |
2329 | J.P. Morgan Chase | Pacific Sunwear Stores Corp. | Store Depository Account |
3117 | PNC Bank | Pacific Sunwear Stores Corp. | Store Depository Account |
2667 | US Bank | Pacific Sunwear Stores Corp. | Store Depository Account |
7527 | Regions Bank | Pacific Sunwear Stores Corp. | Store Depository Account |
3071 | Key Bank Of New York | Pacific Sunwear Stores Corp. | Store Depository Account |
2954 | Banco Popular | Pacific Sunwear Stores Corp. | Store Depository Account |
4139 | American Savings | Pacific Sunwear Stores Corp. | Store Depository Account |
1563 | M & T Bank | Pacific Sunwear Stores Corp. | Store Depository Account |
4201 | Queenstown Bank | Pacific Sunwear Stores Corp. | Store Depository Account |
3190 | Citizens Bank | Pacific Sunwear Stores Corp. | Store Depository Account |
5554 | Bank Of America | Pacific Sunwear Stores Corp. | Sales Tax Payments Disbursement Account |
2662 | PNC Bank | Pacific Sunwear Stores Corp. | Return Check Concentration Account |
4431 | PNC Bank | Pacific Sunwear Stores Corp. | ACH - Utility Payments Disbursement Account |
In re Pacific Sunwear of California, Inc., et al. | Case No. 16-10882 (LSS) | ||
Debtor | |||
SCHEDULE OF RETAINERS PAID TO PROFESSIONALS | |||
(This schedule is to include each Professional paid a retainer) | |||
Name of Payee | Name of Payor | Initial Amount | Current Balance |
Klee, Tuchin, Bogdanoff & Stern, LLP | Pacific Sunwear of California, Inc. | 150,000 | Unknown |
Young Conaway Stargatt & Taylor, LLP [1] | Pacific Sunwear of California, Inc. | 65,151 | Unknown |
Guggenheim Partners, LLC [2] | Pacific Sunwear of California, Inc. | 150,000 | Unknown |
FTI Consulting | Pacific Sunwear of California, Inc. | 50,000 | Unknown |
Sard Verbinnen & Co | Pacific Sunwear of California, Inc. | 50,000 | Unknown |
Prime Clerk | Pacific Sunwear of California, Inc. | 25,000 | Unknown |
Kirkland & Ellis LLP | Pacific Sunwear of California, Inc. | 125,000 | Unknown |
[1] Evergreen Retainer. | |||
[2] Represents monthly prepayment for the following month's services. Amount shown covers services through April 15. |