UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): August 31, 2016
PACIFIC SUNWEAR OF CALIFORNIA, INC.
(Exact Name of Registrant as Specified in Charter)
California | 001-21296 | 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) |
(714) 414-4000
Registrants telephone number, including area code
Check the appropriate box below if the Form 8K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a12 under the Exchange Act (17 CFR 240.14a12) |
¨ | Precommencement communications pursuant to Rule 14d2(b) under the Exchange Act (17 CFR 240.14d2(b)) |
¨ | Precommencement communications pursuant to Rule 13e4(c) under the Exchange Act (17 CFR 240.13e4(c)) |
Item 7.01 Regulation FD Disclosure.
As previously disclosed in a Current Report on Form 8-K filed by Pacific Sunwear of California, Inc. (the Company) on April 8, 2016, the Company and its two subsidiaries (collectively with the Company, the Debtors) filed voluntary petitions in the United States Bankruptcy Court for the District of Delaware (the Bankruptcy Court) seeking relief under Chapter 11 of Title 11 of the United States Code. The Chapter 11 cases are being administered under the caption In re Pacific Sunwear of California, Inc., et al., Case Nos. 16-10881, 16-10882 and 16-10883 (the Chapter 11 Cases).
On August 31, 2016, the Debtors filed their monthly operating report for the period of July 3, 2016 through July 30, 2016 (the July Monthly Operating Report) with the Bankruptcy Court. The July Monthly Operating Report is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Additional information on the Chapter 11 Cases, including access to documents filed with the Bankruptcy Court, can be accessed at pacsun.com, cases.primeclerk.com/pacsun (the court-appointed claims agent site), or www.deb.uscourts.gov, the official Bankruptcy Court website.
The information in Item 7.01 of this Form 8-K is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of such section. The information in Item 7.01 of this Form 8-K shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any incorporation by reference language in any such filing.
Cautionary Statement Regarding July Monthly Operating Report
The Company cautions investors and potential investors not to place undue reliance upon the information contained in the July Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of the Company. The July 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 applicable in the Chapter 11 Cases and is in a format acceptable to the U.S. Trustee. The forecasts contained in the July Monthly Operating Report reflect estimates and assumptions made by management of the Company with respect to cash receipts and disbursements, as well as numerous other factors. These factors are difficult to predict accurately and in many cases are outside of the Companys control. Consequently, it is likely that actual results will differ from those reflected in the July Monthly Operating Report and such differences may be significant. The Company has not made and does not make any representation to any person regarding the Companys future results. Furthermore, the Company is not required to publicly update the July Monthly Operating Report to reflect more current facts or estimates or the occurrence of future events, including if the facts, estimates and assumptions upon which the July Monthly Operating Report is based are erroneous. The July Monthly Operating Report was not audited or reviewed by independent accountants, was not prepared in accordance with generally accepted accounting principles in the United States, is in a format prescribed by applicable bankruptcy laws, and is subject to future adjustment (which may be material) and reconciliation. There can be no assurance that, from the perspective of an investor or potential investor in the Companys securities, the July Monthly Operating Report is complete. The July Monthly Operating Report also contains information for periods which are shorter or otherwise different from those required in the Companys reports pursuant to the Exchange Act and such information might not be indicative of the Companys financial condition or operating results for the period that would be reflected in the Companys financial statements or in its reports pursuant to the Exchange Act. Results set forth in the July Monthly Operating Report should not be viewed as indicative of future results.
Cautionary Statement Regarding Forward-Looking Statements
This Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Exchange Act, and we intend that such forward-looking statements be subject to the safe harbors created thereby. We are providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in the forward-looking statements contained herein. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, future events or performance (often, but not always identifiable by the use of the words or phrases such as will result, expects to, will continue, anticipates, plans, intends, estimated, projects, and outlook) are not historical facts and may be forward-looking and, accordingly, such statements involve estimates, assumptions and uncertainties which could cause actual results to differ materially from those expressed in these forward-looking statements. All forward-looking statements included in this Report are based on information available to us as of the date hereof, and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Such risks and uncertainties include, but are not limited to: those described under the Risk Factors section and elsewhere in the Companys Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the SEC) on December 8, 2015 and September 10, 2015, most recent Annual Report on Form 10-K filed with the SEC on March 26, 2015, as well as in other past filings with the SEC, and risks and uncertainties relating to the bankruptcy filing by the Company, including but not limited to, (i) the Companys ability to obtain Bankruptcy Court approval with respect to motions in the Chapter 11 Cases, (ii) the ability of the Company and its subsidiaries to consummate the transactions contemplated by the Restructuring Support Agreement with respect to the Chapter 11 Cases, (iii) the effects of the Companys bankruptcy filing on the Company and on the interests of various constituents, (iv) Bankruptcy Court rulings in the Chapter 11 Cases and the outcome of the cases in general, (v) the length of time the Company will operate under the Chapter 11 Cases, (vi) risks associated with third party motions in the Chapter 11 Cases, which may interfere with the Companys ability to consummate the transactions contemplated by the Restructuring Support Agreement, (vii) the potential adverse effects of the Chapter 11 Cases on the Companys liquidity or results of operations, (viii) the ability to operate the Companys business and consummate the transactions contemplated by the Restructuring Support Agreement, (ix) the transactions contemplated by the DIP Credit Agreement, and the Restructuring Support Agreement being subject to closing conditions, which conditions may not be satisfied for various reasons, including for reasons outside of the Companys control, (x) increased legal costs to execute the Companys reorganization, and other risks and uncertainties, (xi) the Companys ability to maintain contracts, trade credit and other customer and/or vendor relationships that are essential to the Companys operations, and (xii) the Companys ability to retain key executives and employees. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We assume no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur after such statements are made.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The Exhibit Index appearing after the signature page to this Current Report on Form 8-K is incorporated herein by reference.
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.
Dated: September 6, 2016
PACIFIC SUNWEAR OF CALIFORNIA, INC. | ||||
|
/s/ GARY SCHOENFELD | |||
Gary Schoenfeld | ||||
President and Chief Executive Officer |
EXHIBIT INDEX
EXHIBIT |
DESCRIPTION | |
99.1 | July Monthly Operating Report |
Exhibit 99.1
UNITED STATES BANKRUPTCY COURT
DISTRICT OF DELAWARE
In re Pacific Sunwear of California, Inc., et al | Case No. 16-10882 | |
Reporting Period: 7/3/2016 to 7/30/2016 |
MONTHLY OPERATING REPORT
Submit copy of report to any official committee appointed in the case.
REQUIRED DOCUMENTS
|
Form No.
|
Document
|
Explanation
|
Affidavit/Supplement
|
||||||
Schedule of Cash Receipts and Disbursements |
MOR-1 | Yes | ||||||||
Schedule of Bank Accounts with Book Balances |
MOR-1a | Yes | ||||||||
Bank Reconciliation (or copies of debtors bank reconciliations) |
MOR-1b | No | Yes | MOR-1b Declaration | ||||||
Schedule of Professional Fees Paid |
MOR-1c | Yes | ||||||||
Copies of bank statements |
No | Yes | MOR-1b Declaration | |||||||
Cash disbursements journals |
No | Yes | MOR-1b Declaration | |||||||
Statement of Operations |
MOR-2 | Yes | ||||||||
Balance Sheet |
MOR-3 | Yes | ||||||||
Status of Post petition Taxes |
MOR-4 | Yes | ||||||||
Copies of IRS Form 6123 or payment receipt |
No | Yes | Available upon request | |||||||
Copies of tax returns filed during reporting period |
No | Yes | Available upon request | |||||||
Summary of Unpaid Post petition Debts |
MOR-4 | Yes | ||||||||
Listing of aged accounts payable |
MOR-4 | Yes | ||||||||
Debtor Questionnaire |
MOR-5 | Yes |
Global Notes:
This Monthly Operating Report (MOR) has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in these bankruptcy cases. The financial information contained herein is unaudited, limited in scope and as discussed below, not prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP).
The results of operations contained herein are not necessarily indicative of the results which may be expected from any other period or for the full year and may not necessarily reflect the results of operations, financial position and schedule of receipts and disbursements in the future. The amounts in MOR 3 currently classified as liabilities subject to compromise may be subject to future change as the Debtors complete their analysis of pre and post-petition liabilities. The Debtors caution readers not to place undue reliance on the MOR. There can be no assurance that such information is complete and the MOR may be subject to revision.
I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.
/s/ Gary Schoenfeld |
August 31, 2016 | |||
Signature of Debtor | Date | |||
/s/ Gary Schoenfeld |
August 31, 2016 | |||
Signature of Joint Debtor | Date | |||
/s/ Gary Schoenfeld |
August 31, 2016 | |||
Signature of Authorized Individual* | Date | |||
Gary Schoenfeld |
President & Chief Executive 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.
1
In re Pacific Sunwear of California, Inc., et al | Case No. 16-10882 Reporting Period: 7/3/2016 to 7/30/2016 |
SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS
MOR-1
($ in thousands) |
Pacific Sunwear of
|
Pacific Sunwear
|
Miraloma Borrower
|
Consolidated
|
||||||||||||
Cash Receipts |
$ | 2,144 | $ | 58,369 | $ | - | $ | 60,513 | ||||||||
Cash Disbursements |
||||||||||||||||
Merchandise Vendor Payments |
$ | (30,367) | $ | (1 | ) | $ | - | $ | (30,368) | |||||||
Payroll, Payroll Taxes, and Benefits |
(3,066) | (7,817 | ) | - | (10,883) | |||||||||||
Rent & Occupancy |
- | (14,411 | ) | - | (14,411) | |||||||||||
Sales Tax Remittance |
- | (3,592 | ) | - | (3,592) | |||||||||||
Other Disbursements |
(7,272) | (4,668 | ) | - | (11,940) | |||||||||||
|
|
|||||||||||||||
Operating Disbursements
|
$
|
(40,705)
|
|
$
|
(30,490
|
)
|
$
|
-
|
|
$
|
(71,195)
|
| ||||
|
|
|||||||||||||||
Net Operating Cash Flow |
$ | (38,561) | $ | 27,879 | $ | - | $ | (10,682) | ||||||||
Beginning Balance |
$ | 7,803 | $ | (5,806 | ) | $ | - | $ | 1,997 | |||||||
Cash Receipts |
2,144 | 58,369 | - | 60,513 | ||||||||||||
Operating Disbursements [A] |
(40,705) | (30,490 | ) | - | (71,195) | |||||||||||
Borrowings |
29,317 | - | - | 29,317 | ||||||||||||
Line of Credit Paydowns [A] |
(20,521) | - | - | (20,521) | ||||||||||||
Intercompany Receipts/Adjustments |
29,492 | - | 29,492 | |||||||||||||
Intercompany Disbursements/Adjustments [A] |
(28,865 | ) | (28,865) | |||||||||||||
|
|
|||||||||||||||
Ending Balance |
$ | 7,531 | $ | (6,792 | ) | $ | - | $ | 739 | |||||||
Disbursements for calculating US Trustee Quarterly Fees: |
||||||||||||||||
Total Disbursements - Sum of [A] |
$ | 61,227 | $ | 59,354 | $ | - | $ | 120,581 |
[1] Miraloma Borrower Corporation does not maintain bank accounts and therefore, does not have disbursements to report during the period.
2
In re Pacific Sunwear of California, Inc., et al | Case No. 16-10882 Reporting Period: 7/3/2016 to 7/30/2016 |
MOR-1a - Schedule of Bank Accounts with Book Balances
Bank Account
|
Pacific Sunwear of
|
Pacific Sunwear
|
Miraloma Borrower
|
Consolidated
|
||||||||||||
104000 CASH ON HAND |
$ | 2,046 | $ | 416,040 | $ | - | $ | 418,085 | ||||||||
100000 CASH - HELD CHECK ACCRUAL |
- | - | - | - | ||||||||||||
100002 CC DEP - AMEX |
- | 450,304 | - | 450,304 | ||||||||||||
100003 CC DEP - VISA/MC |
- | 7,262,667 | - | 7,262,667 | ||||||||||||
100004 CC DEP - DISCOVER |
- | 175,958 | - | 175,958 | ||||||||||||
100005 CC DEP - PSUN CC |
- | 189,927 | - | 189,927 | ||||||||||||
100006 CC DEP - AMEX - E4X |
- | 22,751 | - | 22,751 | ||||||||||||
100052 GENERAL CASH ACCT - B OF A |
2,826 | - | - | 2,826 | ||||||||||||
100053 PAYROLL - PARENT B OF A |
0 | - | - | 0 | ||||||||||||
100054 PAYROLL - STORES B OF A |
- | 1,790 | - | 1,790 | ||||||||||||
100056 FUNDING - CITI NON-CA CIGNA |
- | - | - | - | ||||||||||||
100057 PAYROLL - 401K B OF A |
7,596,361 | (7,596,361) | - | - | ||||||||||||
100070 DISBURSE - STORES - WELLS FARG |
- | (12,267,243) | - | (12,267,243 | ) | |||||||||||
100071 DISBURSE - PARENT - WELLS FARG |
(624,030 | ) | - | - | (624,030 | ) | ||||||||||
100072 GENERAL CASH ACCT - WELLS FARG |
553,418 | - | - | 553,418 | ||||||||||||
100075 UTILITY DEPOSIT - WELLS FARGO |
- | 441,372 | - | 441,372 | ||||||||||||
101000 DEP - AMAZON TENDER |
- | - | - | - | ||||||||||||
101000 DEP - AMERICAN SAVINGS BANK |
- | 69,058 | - | 69,058 | ||||||||||||
101000 DEP - BANCO POPULAR 2 |
- | 90,320 | - | 90,320 | ||||||||||||
101000 DEP - BANK OF HAWAII |
- | 15 | - | 15 | ||||||||||||
101000 DEP - CITIZENS BANK |
- | 121,440 | - | 121,440 | ||||||||||||
101000 DEP - ECOM B OF A |
- | (10,218) | - | (10,218 | ) | |||||||||||
101000 DEP - ECOM B OF A (PAYPAL) |
- | 53,070 | - | 53,070 | ||||||||||||
101000 DEP - JP MORGAN CHASE |
- | 342,002 | - | 342,002 | ||||||||||||
101000 DEP - KEY BANK OF NEW YORK |
- | 82,087 | - | 82,087 | ||||||||||||
101000 DEP - M&T BANK |
- | 30,948 | - | 30,948 | ||||||||||||
101000 DEP - PNC BANK |
- | 207,661 | - | 207,661 | ||||||||||||
101000 DEP - PNC RCC |
- | 3,313 | - | 3,313 | ||||||||||||
101000 DEP - QUEENSTOWN BANK |
- | - | - | - | ||||||||||||
101000 DEP - REGIONS |
- | 191,514 | - | 191,514 | ||||||||||||
101000 DEP - US BANK |
- | 199,958 | - | 199,958 | ||||||||||||
101000 DEP - WELLS FARGO BANK - CC |
- | 93,326 | - | 93,326 | ||||||||||||
101000 DEP - WELLS FARGO BANK - STORE |
- | 1,601,171 | - | 1,601,171 | ||||||||||||
101000 DEPOSITORY CLEARING |
- | 2,963 | - | 2,963 | ||||||||||||
101001 ACH PAYMENTS - UTILITIES |
- | 1,002,918 | - | 1,002,918 | ||||||||||||
101400 CC CLEARING - PLCC |
- | - | - | - | ||||||||||||
101401 CC CLEARING - AMEX |
- | 177 | - | 177 | ||||||||||||
101402 CC CLEARING - VISA/MC |
- | 7,069 | - | 7,069 | ||||||||||||
101403 CC CLEARING - DISCOVER |
- | 85 | - | 85 | ||||||||||||
101404 CC CLEARING - PAYPAL |
- | - | - | - | ||||||||||||
101405 CC CLEARING - AMEX - E4X |
- | - | - | - | ||||||||||||
103000 CD - MANUFACTURERS BANK UTIL |
- | 11,799 | - | 11,799 | ||||||||||||
103001 CD - WELLS FARGO NEV TAX |
- | 10,019 | - | 10,019 | ||||||||||||
|
|
|||||||||||||||
$ | 7,530,621 | $ | (6,792,098) | $ | - | $ | 738,523 |
3
In re Pacific Sunwear of California, Inc., et al | Case No. 16-10882 Reporting Period: 7/3/2016 to 7/30/2016 |
MOR-1b - Declaration Regarding the Status of Bank Reconciliations of the Debtors
Gary Schoenfeld hereby declares under penalty of perjury:
1 | I am the President and Chief Executive Officer for Pacific Sunwear of California, Inc. et al., the above-captioned debtors and debtors in possession (collectively, the Debtors). I am familiar with the debtors day-to-day operations, business affairs and books and records. |
2 | All statements in the Declaration are based on my personal knowledge, my review of the relevant documents, my discussions with other employees of the Debtors, or my opinion based upon my experience and knowledge of the Debtors operations and financial condition. If I were called upon to testify, I could and would testify to each of these facts set forth herein based on such personal knowledge, review of documents or opinion. I am authorized to submit this Declaration on behalf of the Debtors. |
3 | To the best of my knowledge, all of the Debtors bank balances as of July 30, 2016 have been reconciled in an accurate and timely manner. |
Dated: August 31, 2016 | Respectfully submitted | |
|
/s/ Gary Schoenfeld | |
By: Gary Schoenfeld | ||
Title: President & Chief Executive Officer |
4
In re Pacific Sunwear of California, Inc., et al | Case No. 16-10882 Reporting Period: 7/3/2016 to 7/30/2016 |
MOR - 1c
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID
This schedule is to include all retained professional payments from case inception to current month
Check | Amount Paid | Year-To-Date | ||||||||||||||||||||
Payee
|
Period Covered
|
Payor
|
Number
|
Date
|
Fees
|
Expenses
|
Fees
|
Expenses
| ||||||||||||||
Choate, Hall & Stewart | Apr 4 - 30, 2016 | Pacific Sunwear of California, Inc. | N/A [1] | 24-May | 215,567 | 7,125 | 215,567 | 7,125 | ||||||||||||||
Choate, Hall & Stewart | May 2016 | Pacific Sunwear of California, Inc. | N/A [1] | 12-Jul | 104,207 | 3,576 | 319,774 | 10,702 | ||||||||||||||
FTI Consulting | Apr 7 - 30, 2016 | Pacific Sunwear of California, Inc. | 911050 | 24-Jun | 364,312 | 32,569 | 364,312 | 32,569 | ||||||||||||||
Guggenheim Securities | Apr 7 - 30, 2016 | Pacific Sunwear of California, Inc. | 4637806106 | 10-Jun | 120,000 | 4,955 | 120,000 | 4,955 | ||||||||||||||
Kirkland & Ellis | Apr 7 - 30, 2016 | Pacific Sunwear of California, Inc. | 910836 | 1-Jun | 348,355 | 4,603 | 348,355 | 4,603 | ||||||||||||||
Kirkland & Ellis | May 2016 | Pacific Sunwear of California, Inc. | 911274 | 19-Jul | 190,834 | 4,003 | 539,189 | 8,606 | ||||||||||||||
Klee, Tuchin, Bogdanoff & Stern | Apr 7 - 30, 2016 | Pacific Sunwear of California, Inc. | 910929 | 10-Jun | 215,991 | 3,364 | 215,991 | 3,364 | ||||||||||||||
Klee, Tuchin, Bogdanoff & Stern | May 2016 | Pacific Sunwear of California, Inc. | 911229 | 15-Jul | 380,348 | 12,804 | 596,339 | 16,168 | ||||||||||||||
Prime Clerk | Apr 7 - 30, 2016 | Pacific Sunwear of California, Inc. | 910950 | 10-Jun | 72,991 | 285,015 | 72,991 | 285,015 | ||||||||||||||
Prime Clerk | May 1 - 31, 2016 | Pacific Sunwear of California, Inc. | 910975 | 16-Jun | 99,029 | 224,683 | 172,019 | 509,697 | ||||||||||||||
Prime Clerk | Apr 7 - 30, 2016 | Pacific Sunwear of California, Inc. | 911051 | 24-Jun | 8,817 | - | 180,836 | 509,697 | ||||||||||||||
Richards Layton & Finger | Mar 23 -Apr 30, 2016 | Pacific Sunwear of California, Inc. | N/A [1] | 25-May | 41,980 | 2,242 | 41,980 | 2,242 | ||||||||||||||
Sullivan & Cromwell | Apr 7 - 30, 2016 | Pacific Sunwear of California, Inc. | 910926 | 10-Jun | 22,457 | - | 22,457 | - | ||||||||||||||
Sullivan & Cromwell | May 2016 | Pacific Sunwear of California, Inc. | 911253 | 19-Jul | 12,344 | - | 34,801 | - | ||||||||||||||
Young Conaway Stargatt & Taylor | Apr 7 - 30, 2016 | Pacific Sunwear of California, Inc. | 911117 | 1-Jul | 119,785 | 13,966 | 119,785 | 13,966 | ||||||||||||||
Young Conaway Stargatt & Taylor | May 2016 | Pacific Sunwear of California, Inc. | 911275 | 19-Jul | 64,179 | 4,817 | 183,964 | 18,783 |
[1] DIP Lender Counsel was paid by direct debit from the ABL facility at the direction of Wells Fargo.
5
Pacific Sunwear of California, Inc. et al Reporting Period: 7/3/2016 to 7/30/2016 MOR-2 |
Case No. 16-10882 |
$ in thousands
|
Pacific Sunwear of
|
Pacific Sunwear
|
Miraloma Borrower
|
Eliminations
|
Consolidated
|
|||||||||||||||
Net Sales |
$ | 51,238 | $ | 57,114 | $ | - | $ | (51,238) | $ | 57,114 | ||||||||||
Cost of Goods Sold |
(46,660 | ) | (37,696 | ) | - | 49,950 | (34,406) | |||||||||||||
|
|
|||||||||||||||||||
Gross Margin |
$ | 4,578 | $ | 19,418 | $ | - | $ | (1,288) | $ | 22,708 | ||||||||||
Expenses: |
||||||||||||||||||||
Operating Expenses [2] |
$ | 6,286 | $ | 29,514 | $ | (96 | ) | $ | - | $ | 35,705 | |||||||||
Derivative Liab (Gain) Loss |
(131 | ) | - | - | - | (131) | ||||||||||||||
Net Interest (Income) Expense |
1,428 | 548 | 82 | - | 2,058 | |||||||||||||||
Income Tax Provision (Benefit) |
- | 328 | - | - | 328 | |||||||||||||||
|
|
|||||||||||||||||||
Total Expenses |
$ | 7,583 | $ | 30,391 | $ | (14 | ) | $ | - | $ | 37,960 | |||||||||
|
|
|||||||||||||||||||
Net Income Prior to Reorganization Items |
$ | (3,005 | ) | $ | (10,973 | ) | $ | 14 | $ | (1,288) | $ | (15,252) | ||||||||
Reorganization Items |
(2,344 | ) | - | - | - | (2,344) | ||||||||||||||
|
|
|||||||||||||||||||
Net Income After Reorganization Items |
$ | (5,349 | ) | $ | (10,973 | ) | $ | 14 | $ | (1,288) | $ | (17,596) | ||||||||
|
|
Notes:
[1] The unaudited financial statements have been derived from the books and records of the Debtors. The information furnished in this report includes primarily normal recurring adjustments, but may not include all of the adjustments that would typically be made for the quarterly and annual financial statements in accordance with US GAAP. Furthermore, the monthly financial information contained herein has not been subjected to the same level of accounting review and testing that the Debtors apply in the preparation of their quarterly and annual financial information in accordance with US GAAP. Accordingly, upon the application of such procedures, the financial information may be subject to change and that these changes could be material.
[2] Operating expenses include direct store expenses and selling, general, and administrative expenses.
6
Pacific Sunwear of California, Inc. et al Reporting Period: 7/3/2016 to 7/30/2016 MOR-3 |
Case No. 16-10882 |
$ in thousands |
Pacific Sunwear of
|
Pacific Sunwear
|
Miraloma Borrower
|
Eliminations
|
Consolidated
|
|||||||||||||||
Assets |
||||||||||||||||||||
Cash and cash equivalents |
$ | 7,531 | $ | (6,792) | $ | - | $ | - | $ | 739 | ||||||||||
Other current assets |
638 | 5,404 | - | - | 6,042 | |||||||||||||||
Intercompany Inventory |
(189,049) | 172,038 | - | 17,011 | - | |||||||||||||||
Inventories |
201,153 | (48,550) | - | (27,183) | 125,420 | |||||||||||||||
Prepaid expenses |
10,159 | 16,835 | 210 | - | 27,204 | |||||||||||||||
Property and equipment, net |
2,621 | 62,570 | 18,876 | - | 84,067 | |||||||||||||||
Intangible assets, net |
9,580 | 831 | - | - | 10,411 | |||||||||||||||
Other assets |
56,642 | 23,824 | 153 | (56,539) | 24,080 | |||||||||||||||
Deferred income taxes |
3,344 | - | - | - | 3,344 | |||||||||||||||
Intercompany Asset |
(63,307) | 78,616 | (3,407) | (11,902) | - | |||||||||||||||
|
|
|||||||||||||||||||
Total Assets |
$ | 39,312 | $ | 304,777 | $ | 15,831 | $ | (78,613) | $ | 281,307 | ||||||||||
|
|
|||||||||||||||||||
Liabilities |
||||||||||||||||||||
Not Subject to Compromise |
||||||||||||||||||||
Accounts payable (post-petition) |
$ | 44,817 | $ | 3,412 | $ | - | $ | - | $ | 48,229 | ||||||||||
Other current liabilities [1] |
21,635 | 27,988 | - | - | 49,623 | |||||||||||||||
Current portion of long-term debt |
- | 255 | 330 | - | 585 | |||||||||||||||
Line of credit |
28,447 | - | - | - | 28,447 | |||||||||||||||
Other liabilities |
- | 23,372 | - | - | 23,372 | |||||||||||||||
Long-term debt |
- | 11,575 | 14,946 | - | 26,521 | |||||||||||||||
Intercompany Liability |
(175,734) | 186,569 | 1,068 | (11,902) | - | |||||||||||||||
Subject to Compromise |
||||||||||||||||||||
Accounts payable (prepetition) |
28,940 | 19,923 | - | - | 48,863 | |||||||||||||||
Other current liabilities |
452 | 1,167 | - | - | 1,619 | |||||||||||||||
Current portion of long-term debt |
80,644 | - | - | - | 80,644 | |||||||||||||||
Other liabilities |
2,143 | - | - | - | 2,143 | |||||||||||||||
Deferred rent |
- | 13,994 | - | - | 13,994 | |||||||||||||||
Deferred lease incentives |
- | 12,548 | - | - | 12,548 | |||||||||||||||
|
|
|||||||||||||||||||
Total Liabilities |
$ | 31,345 | $ | 300,803 | $ | 16,343 | $ | (11,902) | $ | 336,589 | ||||||||||
Equity |
||||||||||||||||||||
Common stock |
$ | 704 | $ | 0 | $ | - | $ | (0) | $ | 704 | ||||||||||
Preferred stock |
- | - | - | - | - | |||||||||||||||
Additional paid-in capital |
27,747 | 56,539 | - | (56,539) | 27,747 | |||||||||||||||
Current year Net Income |
(37,392) | (20,464) | 80 | 17,011 | (40,765) | |||||||||||||||
Retained Earnings |
16,908 | (32,100) | (592) | (27,183) | (42,968) | |||||||||||||||
|
|
|||||||||||||||||||
Total Equity |
$ | 7,967 | $ | 3,974 | $ | (512) | $ | (66,711) | $ | (55,282) | ||||||||||
|
|
|||||||||||||||||||
Total Liabilities and Equity |
$ | 39,312 | $ | 304,777 | $ | 15,831 | $ | (78,613) | $ | 281,307 | ||||||||||
|
|
[1] Other current liabilities not subject to compromise may include prepetition accruals for which invoices have not been received.
7
In re Pacific Sunwear of California, Inc., et al | Case No. 16-10882 Reporting Period: 7/3/2016 to 7/30/2016 |
STATUS OF POSTPETITION TAXES
MOR - 4
The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero.
$ in thousands | Beginning Tax Liability
|
Amount
|
Amount
|
Ending Tax Liability
|
||||||||||||
Federal |
||||||||||||||||
Withholding |
$0 | $1,519 | $1,519 | $0 | ||||||||||||
FICA-Employee |
0 | 1,029 | 1,029 | 0 | ||||||||||||
FICA-Employer |
0 | 1,026 | 1,026 | 0 | ||||||||||||
Unemployment |
0 | 25 | 25 | 0 | ||||||||||||
Income |
0 | 125 | 125 | 0 | ||||||||||||
Total Federal Taxes |
$0 | $3,724 | $3,724 | $0 | ||||||||||||
State and Local |
||||||||||||||||
Withholding - State |
$0 | $460 | $460 | $0 | ||||||||||||
Withholding - Local |
0 | 16 | 16 | 0 | ||||||||||||
Sales |
3,529 | 3,625 | 3,286 | 3,867 | ||||||||||||
Unemployment |
0 | 46 | 46 | 0 | ||||||||||||
Real Property [1] |
||||||||||||||||
Personal Property |
0 | 31 | 31 | 0 | ||||||||||||
Gross Receipts Taxes/Business Licenses |
0 | 21 | 21 | 0 | ||||||||||||
Total State and Local |
$3,529 | $4,198 | $3,860 | $3,867 | ||||||||||||
Total Taxes |
$3,529 | $7,922 | $7,583 | $3,867 |
[1] Real property taxes are paid through mortgage payments, and as such, are not included on this schedule.
SUMMARY OF UNPAID POSTPETITION DEBTS [2]
$ in thousands | Number of Days Past Due | |||||||||||||||
Current | 0-30 | 31-60 | Total | |||||||||||||
Accounts Payable [3] |
$48,229 | $48,229 | ||||||||||||||
Taxes Payable |
3,867 | 3,867 | ||||||||||||||
Total Post petition Debts |
$52,096 | $0 | $0 | $52,096 |
[2] The Debtor is in the process of actively reviewing accounts payable and liabilities; therefore, these figures may be subject to change.
[3] Accounts Payable excludes other accrued liabilities which include accruals for wages, benefits, royalties, freight, taxes, capital leases, insurance and other expenses that may not be payable as of the filing of this report. Other accrued liabilities may also include prepetition accruals for which invoices have not been received.
Explain how and when the Debtor intends to pay any past-due post petition debts.
N/A
8
In re Pacific Sunwear of California, Inc., et al | Case No. 16-10882 Reporting Period: 7/3/2016 to 7/30/2016 |
ACCOUNTS RECEIVABLE RECONCILIATION AND AGING [1]
Accounts Receivable Reconciliation
|
Amount
| |
Total Accounts Receivable at the beginning of the reporting period |
N/A | |
+ Amounts billed during the period |
N/A | |
- Amounts collected during the period |
N/A | |
Total Accounts Receivable at the end of the reporting period |
N/A | |
Accounts Receivable Aging
|
Amount
| |
0 - 30 days old |
N/A | |
31 - 60 days old |
N/A | |
61 - 90 days old |
N/A | |
91+ days old |
N/A | |
Total Accounts Receivable |
N/A | |
Amount considered uncollectible (Bad Debt) |
N/A | |
Accounts Receivable (Net) |
N/A |
[1] Debtors customer sales are collected at the time of transaction in the form of cash or credit card payments; therefore the Debtors do not carry significant accounts receivable balances. Certain other accounts receivable for rebates, holdbacks, vendor overpayments and credits, excess merchandise sold to third party resellers, and other non-trade receivables are included in the other current assets line item on the balance sheet.
DEBTOR QUESTIONNAIRE
Must be completed each month
|
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 timely filed? 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 account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.
|
X |
9