EX-99.1 2 tm2115783d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Case No. 20-13076 (BLS)
Francesca’s Holdings Corporation, et al. Reporting Period: February 28, 2021 – April 3, 2021
Debtors  

 

MONTHLY OPERATING REPORT

Reporting Period: February 28, 2021 – April 3, 2021 

 

REQUIRED DOCUMENTS Form No. Document
Attached		 Explanation
Attached		 Affidavit/
Supplement
Attached
Schedule of Cash Receipts and Disbursements MOR-1 X X  
Bank Account Balances, Debtor Statement with Respect to Bank Account Reconciliations MOR-1a X X See Attestation
Schedule of Professional Fees and Expenses Paid MOR-1b X    
Copies of bank statements       See Attestation
Cash disbursements journals       See Attestation
Statement of Operations by Legal Entity MOR-2 X X  
Balance Sheet by Legal Entity MOR-3 X X  
Status of Postpetition Taxes       See Attestation
Summary of Unpaid Postpetition Debts MOR-4 X    
Accounts Receivable Reconciliation and Aging MOR-5 X    
Debtor Questionnaire MOR-5 X    
Opening Balance Sheet by Legal Entity Exhibit A X    
Disbursements by Legal Entity Exhibit B X    

 

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.

 

     
Signature of Debtor   Date
Anthony M. Saccullo    
Wind-Down Officer    

 

Page 1 of 14

 

 
In re: Case No. 20-13076 (BLS)
Francesca’s Holdings Corporation, et al. Reporting Period: February 28, 2021 – April 3, 2021
Debtors  

 

Notes to the Monthly Operating Report (“MOR”)

Reporting Period: February 28, 2021 – April 3, 2021

 

General:

 

The Debtors filed for relief under chapter 11 of title 11 of the United States Code, §§ 101-1532, et seq. on December 3, 2020. Per agreement with the Office of the United States Trustee for the District of Delaware (the “U.S. Trustee”), the Debtors have prepared this monthly operating report on a fiscal month basis (this “MOR”) for the period from February 28, 2021 through April 3, 2021.

 

The financial information contained herein is unaudited, 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 these chapter 11 cases. This MOR is not prepared in accordance with GAAP and does not include all of the information and footnotes required thereby. Additionally, certain transactions that would be required to be included in GAAP financial statements are not reflected in this MOR. There can be no assurance that the financial information presented herein is complete, and readers are strongly cautioned not to place reliance on this MOR, which was not prepared for the purpose of providing the basis for an investment decision relating to the Debtors. The unaudited financial statements have been derived from the books and records of the Debtors. The information furnished in this MOR includes certain normal recurring adjustments, but may not include all the adjustments that would typically be made for the quarterly and annual consolidated financial statements in accordance with 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 its annual financial information in accordance with GAAP. Upon the application of such procedures, the Debtors believe that this financial information may be subject to change, and these changes could be material. The financial information contained herein is presented on a preliminary and unaudited basis and remains subject to future reconciliation and adjustment (which may be material). However, the Debtors are not required to publicly update this MOR to reflect more current facts or estimates, or upon the occurrence of future events, including if the facts, estimates, or assumptions upon which this MOR is based change.

 

The Debtors entered into an Asset Purchase Agreement to sell substantially all of the Debtors’ assets to Terramar Capital, LLC (the “Buyer”) effective 11:59 p.m. on January 30, 2021 (the “Sale Transaction”).

 

Notes to MOR-1:

 

Cash is received and disbursed by the Debtors as described in the Debtors' Motion for Entry of Interim and Final Orders (I) Authorizing Continued Use of the Debtors' Existing Cash Management System, Corporate Credit Card Program and Bank Accounts; (II) Waiving Certain United States Trustee Requirements; (III) Extending Time to Comply with Section 345(b) of the Bankruptcy Code; (IV) Authorizing Continued Performance of Intercompany Transactions; and (V) Granting Related Relief [D.I. 29] and is consistent with the Debtors’ historical cash management practices. Cash receipts and disbursements reflected herein include activity from February 28, 2021 to April 3, 2021. Cash receipts and disbursements were derived from the bank statements and accounting system. Cash receipts and disbursements related to intercompany transfers among the Debtors such as cash concentration account sweeps and expense reimbursements, are excluded from total cash receipts and disbursements set forth in MOR-1. Cash receipts and disbursements include certain intercompany expense transactions.

 

Notes to MOR-1a:

 

Amounts listed are the bank balances as of the close of business on April 3, 2021. Copies of the bank statements were not included with this MOR due to the voluminous nature of the statements and are available upon reasonable request in writing to counsel for the Debtors.

 

Notes to MOR-2 and MOR-3:

 

This MOR has been prepared on a legal entity basis for the Debtors.

 

As a result of the Debtors’ chapter 11 filings, the payment of prepetition indebtedness is subject to compromise or other treatment under a plan of reorganization. The amounts currently classified as liabilities subject to compromise may be subject to future adjustments depending on Bankruptcy Court actions, payments pursuant to Bankruptcy Court order, further developments with respect to, among other things, the reconciliation and adjudication of claims, determinations of the secured status of certain claims, the value of any collateral securing such claims, rejection of executory contracts, or other events. The determination of how liabilities will ultimately be settled and treated cannot be made until the Bankruptcy Court approves a chapter 11 plan of reorganization. Accordingly, the ultimate amount of such liabilities is not determinable at this time. No assurance can be given as to the value, if any, that may be ascribed to the Debtors' various prepetition liabilities and other securities.

 

Page 2 of 14

 

 

In re: Case No. 20-13076 (BLS)
Francesca’s Holdings Corporation, et al. Reporting Period: February 28, 2021 – April 3, 2021
Debtors  

 

MOR-1

Schedule of Cash Receipts and Disbursements

Reporting Period: February 28, 2021 – April 3, 2021

($’s in USD) 

 

#     FCI   FSC   FHC   FLLC   Cumulative[1]
2/28/21 - 4/3/21		 
1  Receipts                         
2  Credit Card and Cash Receipts[2]  $1,320   $-   $-   $-   $1,320 
3  Inventory Liquidation   -    -    -    -    - 
4  Federal Tax Refund   -    -    -    -    - 
5  Total Receipts   1,320    -    -    -    1,320 
                             
6  Operating Disbursements                         
7  Payroll & Taxes[3]   1,578    -    -    -    1,578 
8  Rent[4]   8,242    -    -    -    8,242 
9  Inventory   -    289,833    -    -    289,833 
10  Sales Tax[5]   (880)   -    -    -    (880)
11  Merchant Fees   -    -    -    -    - 
12  Employee Benefits[6]   2,526    23,334    -    -    25,860 
13  Marketing   -    61,868    -    -    61,868 
14  Professional/Computer Services[7]   -    125,337    -    -    125,337 
15  Other A/P[8]   89,700    31,058    -    -    120,758 
16  Total Operating Disbursements   101,166    531,430    -    -    632,596 
                             
17  Net Cash Flow from Operations  $(99,846)  $(531,430)  $-   $-   $(631,276)
                             
18  Non-Operating Disbursements / (Receipts)                         
19  Debt Service   -    -    -    -    - 
20  State Taxes[5]   (18,528)   -    -    -    (18,528)
21  Federal Taxes   -    -    -    -    - 
22  CapEx   -    -    -    -    - 
23  Tenant Allowance   -    -    -    -    - 
24  Total Non-Operating Disbursements / (Receipts)   (18,528)   -    -    -    (18,528)
                             
25  Net Cash Flow Before Restructuring  $(81,319)  $(531,430)  $-   $-   $(612,748)
                             
26  Restructuring Related Disbursements                         
27  Professional Fees[9]   -    -    -    -    - 
28  Credit Card Program Deposits   -    -    -    -    - 
29  Utility Deposit and Other Reserves   -    -    -    -    - 
30  503(b)(9) and Critical Vendor Payments   -    -    -    -    - 
31  KEIP/KERP   -    -    -    -    - 
32  UST Fees   -    289,092    -    -    289,092 
33  DIP Fees & Interest - Term   -    -    -    -    - 
34  DIP Fees & Interest - Revolver   -    -    -    -    - 
35  Prepetition Term Loan Repayment   -    -    -    -    - 
36  Cure Costs[10]   -    -    -    -    - 
37  Funding to Professional Fee Account[9]   -    -    -    -    - 
38  Total Restructuring Related Disbursements   -    289,092    -    -    289,092 
                             
39  Net Cash Flow  $(81,319)  $(820,521)  $-   $-   $(901,840)
                             
40  Beginning Cash Balance  $2,291,536   $95,138   $6,243,418   $-   $8,630,092 
41  Net Cash Flow   (81,319)   (820,521)   -    -    (901,840)
42  Borrowings   -    -    -    -    - 
43  Repayments   -    -    -    -    - 
44  Intercompany   -    438,129    (438,129)   -    - 
45  Change in deposits in transfer   -    -    -    -    - 
46  Ending Cash Balance  $2,210,217   $(287,255)  $5,805,289   $-   $7,728,251 

 

Footnotes:

 

[1]Cash balance represents book balance, which is net of outstanding checks and may differ from bank balance due to the timing of items being posted to the Debtors’ bank accounts.
[2]Credit card and cash receipts reflect a restitution payment from prior stolen funds.
[3]Payroll & taxes include payment of wages and associated taxes for store employees prior to Sale Transaction.
[4]Rent disbursements include $8K of occupancy payments on old invoices.
[5]Sales taxes of $(1.0K) and state taxes of $(18.5K) represent return of overpayments in prior periods.
[6]Employee benefits disbursements include 401k match adjustments, 401K fees, and health insurance broker commissions paid in arrears.
[7]Professional/computer services disbursements include payment to Tiger for merchandise consultants, payment to Tiger for January 2021 merchandise consulting incentive fee, and payments to ordinary course professionals.
[8]Other AP disbursements include payments of property tax, utilities, shipping, and contractors.
[9]$5M of disbursements for restructuring professional fees were paid out of the professional fee account from amounts funded in prior periods.
[10]$800k of disbursements for stub rent were paid out of the stub rent escrow from amounts funded in prior periods pursuant to the Asset Purchase Agreement.

 

Page 3 of 14

 

 
In re: Case No. 20-13076 (BLS)
Francesca’s Holdings Corporation, et al. Reporting Period: February 28, 2021 – April 3, 2021
Debtors  

 

MOR-1a

Bank Account Balances, Debtor Statement with Respect to Bank Account Reconciliations

Reporting Period: February 28, 2021 – April 3, 2021

($’s in USD)

 

#  Debtor Entity  Account Number
(Last 4 Digits)		  Bank  Account Type  Period Ended
4/3/2021[1]		 
1  Francesca's Collections, Inc.  4644  Chase  Checking[2]   2,210,217 
2  Francesca's Collections, Inc.  4669  Chase  Checking   - 
3  Francesca's Holdings Corporation  9350  Chase  Checking   5,805,289 
4  Francesca's Services Corporation  8238  Chase  Checking[3]   (287,255)
5        Reported Cash and Cash Equivalents at 4/3/2021  $7,728,251 
                  
6  Francesca's Services Corporation  5317  Chase  Professional Fee Account[4]   1,935,579 
                  

 

Footnotes:

 

[1]Cash balance represents book balance, which is net of outstanding checks and may differ from bank balance due to the timing of items being posted to the Debtors’ bank accounts.
[2]Excludes $253,744 of cash on bank statement that is not property of the estate.  Includes $466,839 of outstanding checks not included on bank statement.
[3]Excludes $2,145,016 of cash on bank statement that is not property of the estate.  Includes $1,070,961 of outstanding checks not included on bank statement. As of April 3, 2021, the Debtor’s balance in account 8238 was negative.  The Debtors made an intercompany transfer from account 9350 to account 8238 on April 8, 2021.
[4]Professional Fee Account is included in restricted cash on Debtors' Balance Sheet.  Other restricted cash accounts are not included on MOR-1a.

 

Page 4 of 14

 

 
In re: Case No. 20-13076 (BLS)
Francesca’s Holdings Corporation, et al. Reporting Period: February 28, 2021 – April 3, 2021
Debtors  

 

MOR-1a

Debtor Attestation to with Respect to Bank Account Reconciliations, Bank Statements and

Open/Closed Bank Accounts

Reporting Period: February 28, 2021 – April 3, 2021

 

Bank Account Reconciliations & Cash Disbursement Journal

 

The Debtors affirm that bank account reconciliations are prepared for all open and active bank accounts on a monthly basis. The Debtors affirm that within their financial accounting systems, check registers and/or disbursement journals are maintained for each disbursement account.

 

Bank Statement

 

The Debtors affirm that bank statements for all open and active bank accounts are retained by the Debtors.

 

Open/Closed Bank Accounts

The Debtors did not open or close any bank accounts in March.

 
   
Anthony M. Saccullo   Date
Wind-Down Officer  

 

Page 5 of 14

 

 

In re: Case No. 20-13076 (BLS)
Francesca’s Holdings Corporation, et al. Reporting Period: February 28, 2021 – April 3, 2021
Debtors  

 

MOR-1b

Schedule of Professional Fees and Expenses Paid

Reporting Period: February 28, 2021 – April 3, 2021

($’s in USD)

 

            Period Covered       Amount Paid this Period     Amount Paid Case to Date  
#   Payee   Role   Beginning Date   End Date   Payment Date   Fees     Expenses     Fees     Expenses  
1   Bankruptcy Management Solutions, Inc.   Claims Agent   December 3, 2020   January 31, 2021   3/24/2021   $ 618,826     $ -     $ 618,826     $ -  
2   Cole Schotz, P.C.   Counsel to the Committee   December 3, 2020   December 31, 2021   3/23/2021     168,644       895       373,937       2,336  
3   Cole Schotz, P.C.   Counsel to the Committee   January 1, 2021   January 31, 2021   4/1/2021     205,293       1,441              
4   FTI Capital Advisors, LLC   Investment Banker   N/A[1]   N/A[1]   3/24/2021     569,230       -       669,230       -  
5   FTI Capital Advisors, LLC   Financial Advisor   December 3, 2020   December 31, 2021   3/24/2021     540,468       -       1,017,567       -  
6   FTI Capital Advisors, LLC   Financial Advisor   January 1, 2021   January 31, 2021   4/1/2021     477,100       -              
7   O'Melveny & Myers, LLP   Debtors' Counsel   December 3, 2020   December 31, 2021   3/24/2021     669,141       53       1,751,211       459  
8   O'Melveny & Myers, LLP   Debtors' Counsel   January 1, 2021   January 31, 2021   4/1/2021     1,082,070       406              
9   Province, LLC   Financial Advisor to the Committee   December 3, 2020   December 31, 2021   3/23/2021     151,726       453       397,479       829  
10   Province, LLC   Financial Advisor to the Committee   January 1, 2021   January 31, 2021   4/1/2021     245,752       376              
11   Richards, Layton & Finger, LLP   Debtors' Counsel   December 3, 2020   December 31, 2021   3/24/2021     150,118       5,562       275,066       9,214  
12   Richards, Layton & Finger, LLP   Debtors' Counsel   January 1, 2021   January 31, 2021   3/24/2021     124,948       3,652              
13   Total                   $ 5,003,316     $ 12,839     $ 5,103,316     $ 12,839  

 

Footnotes:  

 

[1] The $569K payment to FTI Capital Advisors, LLC reflects an investment banking success fee.

 

Page 6 of 14

 

 

In re: Case No. 20-13076 (BLS)
Francesca’s Holdings Corporation, et al. Reporting Period: February 28, 2021 – April 3, 2021
Debtors  

 

MOR-2

Statement of Operations by Legal Entity

Reporting Period: February 28, 2021 – April 3, 2021

($’s in USD)

 

#  Category  FCI   FSC   FHC   FLLC   Consolidated 
1  Net sales  $-   $-   $-   $-   $- 
2  Cost of goods sold and occupancy costs[1]   72,798    -    -    -    72,798 
3  Gross profit   (72,798)   -    -    -    (72,798)
                             
4  Selling, general and administrative expenses[2]   17,081    400,625    -    -    417,706 
5  (Loss) income from operations   (89,879)   (400,625)   -    -    (490,504)
                             
6  Restructuring (expenses)[3]   -    (2,116,601)   -    -    (2,116,601)
7  Gain (loss) on assets[4]   (252,923)   98    -    -    (252,825)
8  Interest income (expense)   -    -    -    -    - 
9  Other income (expense)[5]   (9,318)   -    -    -    (9,318)
10  (Loss) income before income tax expense   (352,120)   (2,517,127)   -    -    (2,869,247)
                             
11  Income tax expense   -    -    -    -    - 
12  Net (loss) income  $(352,120)  $(2,517,127)  $-   $-   $(2,869,247)

 

Footnotes:

 

[1]FCI cost of goods sold & occupancy costs are primarily related to an adjustment for under accrual of telephone expenses.
[2] FSC selling, general and administrative ("SG&A") expenses are primarily related to D&O insurance expense and non-restructuring professional fees. FCI SG&A expenses are primarily related to expense adjustments for supplies and payroll.
[3]Restructuring expenses includes $2.1M of restructuring professional fees.
[4]FCI loss on assets includes write-off for lease rejection damages following payment of lease cures.  FSC gain on assets includes adjustments for shortages on merchandise shipments.
[5]FCI other expense includes adjustments and penalties for underpayment of sales taxes.

 

Page 7 of 14

 

 

n re: Case No. 20-13076 (BLS)
Francesca’s Holdings Corporation, et al. Reporting Period: February 28, 2021 – April 3, 2021
Debtors  

 

MOR-3

Balance Sheet by Legal Entity

Reporting Period: February 28, 2021 – April 3, 2021

($’s in USD)

Balance Sheet at 04/03/2021

 

#  Category  FCI   FSC   FHC   FLLC   Eliminations   Consolidated 
   Assets                              
   Current Assets                              
1  Cash and cash equivalents  $2,210,217   $(287,255)  $5,805,289   $-   $-   $7,728,251 
2  Accounts receivable[1]   34,248,789    255,348,944    1,250,000    -    (255,348,944)   35,498,789 
3  Inventories   3,796,328    -    -    -    (3,796,328)   - 
4  Prepaid expenses and other current assets[2]   856,798    10,984,763    -    -    -    11,841,560 
5  Total Current Assets   41,112,131    266,046,452    7,055,289    -    (259,145,271)   55,068,601 
                                  
6  Operating lease right-of-use assets, net   -    -    -    -    -    - 
7  Property and equipment, net   -    -    -    -    -    - 
8  Other assets, Net[3]   72,888    12,094    -    -    -    84,983 
                                  
9  Total Assets  $41,185,020   $266,058,546   $7,055,289   $-   $(259,145,271)  $55,153,584 
                                  
   Liabilities And Stockholders' Equity                              
   Current Liabilities                              
10  Accounts payable  $259,406,945   $17,999,761   $857,028   $-   $(255,348,944)  $22,914,790 
11  Accrued liabilities[4]   220,423    242,272    -    -    -    462,695 
12  Current portion of long-term debt   -    -    -    -    -    - 
13  Current portion of operating lease liabilities[5]   55,054,526    101,918    -    -    -    55,156,445 
14  Total Current Liabilities   314,681,894    18,343,952    857,028    -    (255,348,944)   78,533,930 
                                  
15  Operating lease liabilities   -    -    -    -    -    - 
16  Long-term debt, net   -    -    -    -    -    - 
17  Intercompany liabilities   (209,178,030)   53,607,640    156,090,713    -    (520,322)   - 
                                  
18  Total Liabilities   105,503,864    71,951,591    156,947,740    -    (255,869,266)   78,533,930 
                                  
19  Preferred Stock   -    -    -    -    -    - 
                                  
   Stockholders' Equity                              
20  Common stock   -    1    39,449    -    (2)   39,448 
21  APIC   -    8,609,538    113,157,531    -    (8,609,537)   113,157,532 
22  Retained earnings   (64,318,844)   185,497,415    (103,068,049)   -    5,333,534    23,444,056 
23  Treasury stock   -    -    (160,021,383)   -    -    (160,021,383)
24  Total Stockholders' Equity   (64,318,844)   194,106,954    (149,892,451)   -    (3,276,005)   (23,380,346)
                                  
25  Total Liabilities And Stockholders' Equity  $41,185,020   $266,058,546   $7,055,289   $-   $(259,145,271)  $55,153,584 

 

Footnotes:  

 

[1]Accounts receivable include $34.0M of income tax receivables, a $1.25M promissory note (due December 31, 2021) as a result of the Sale Transaction, and $237K of sales tax receivables.
[2]Prepaid expenses and other current assets include $970K of prepaid assets (primarily related to D&O insurance) and restricted cash as detailed in the table below:

 

Entity  FCI   FCI   FSC   FSC   FSC   FSC 
Account Description   Cure Escrow    Utility Deposit    Professional Fee    Stub Rent Escrow    Purchase Price Escrow    D&O Insurance 
Balance ($M)  $0.7   $0.2   $1.9   $3.7   $2.4   $2.0 

 

[3]Other assets, Net includes $73K of prepetition boutique utility and security deposits held by FCI and $12K of store supply deposits held by FSC that will be used to offset future payments.
[4]FCI accrued liabilities includes $188K of accrued payroll taxes and $33K of accrued sales tax.  FSC accrued liabilities includes $242K of accrued severance and payroll taxes.
[5]FCI current portion of operating lease liabilities includes $30.0M of unpaid rent, $24.8M of lease rejection costs, and $256K of percent rent accruals.

                

Page 8 of 14

 

 

In re: Case No. 20-13076 (BLS)
Francesca’s Holdings Corporation, et al. Reporting Period: February 28, 2021 – April 3, 2021
Debtors  

 

Debtor Attestation with Respect to Postpetition Taxes

Reporting Period: February 28, 2021 – April 3, 2021

 

Anthony M. Saccullo hereby declares under penalty of perjury:

 

I am the Wind-Down Officer appointed by order of the United States Bankruptcy Court for the District of Delaware [D.I. 475] in the above-captioned case to oversee the bankruptcy of the debtors and debtors in possession (collectively the "Debtors"). I am familiar with the Debtors’ day-to-day operations, business affairs, and books and records. I am authorized to submit this statement on behalf of the Debtors.

 

All statements in this statement 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 the facts set forth herein based on such personal knowledge, review of documents, discussions with other employees of the Debtors or opinion.

 

To the best of my knowledge, information, and belief, and except as otherwise set forth in the MOR, all of the Debtors have filed all the necessary federal, state and local tax returns, or extensions related there to, and have timely made (or are in the process of remediating any immaterial late filings or prepayments) all related required postpetition tax payments, which are not subject to dispute or reconciliation, and are current.

 
   
Anthony M. Saccullo   Date
Wind-Down Officer  

 

Page 9 of 14

 

 

In re: Case No. 20-13076 (BLS)
Francesca’s Holdings Corporation, et al. Reporting Period: February 28, 2021 – April 3, 2021
Debtors  

 

MOR-4

Summary of Unpaid Postpetition Debts

Reporting Period: February 28, 2021 – April 3, 2021

($’s in USD) 

 

          Days Past Due[4]     
#  Accounts Payable  Current   0 - 30 Days   31 - 60 Days   61 - 90 Days   > 91 Days   Total 
1  Combined Debtors[1][2][3]  $42,863   $217,630   $46,966   $34,701   $496,609   $838,768 

 

Footnotes:              

 

[1]The postpetition accounts payable represents open and outstanding trade vendor invoices that have been entered into the Debtors’ accounts payable system.
[2]This summary does not include accruals or intercompany payables.
[3]The postpetition accounts payable do not include any amounts for retained professionals.
[4]The Debtors' accounts payable system has incorrect aging information.  The Debtors have paid post-petition invoices as they come due.

 

Page 10 of 14

 

 

In re: Case No. 20-13076 (BLS)
Francesca’s Holdings Corporation, et al. Reporting Period: February 28, 2021 – April 3, 2021
Debtors  

 

MOR-5

Accounts Receivable Reconciliation and Aging

Reporting Period: February 28, 2021 – April 3, 2021

($’s in USD)

 

Accounts Receivable Reconciliation  

 

#  Reconciliation  Beginning
Accounts
Receivable		   Change in
Accounts
Receivable		   Ending
Accounts
Receivable		 
1  Total Accounts Receivable[1][2]  $35,437,846   $60,944   $35,498,789 

 

Accounts Receivable Aging

 

          Days Past Due             
#  Aging  Current   0 - 30 Days   31 - 60 Days   61 - 90 Days   91+ Days   Total   Uncollectible   AR (Net) 
2  Income Tax Receivables  $34,012,072   $-   $-   $-   $-   $34,012,072   $-   $34,012,072 
3  Transaction Receivables[3]   1,250,000    -    -    -    -    1,250,000    -    1,250,000 
4  Sales Tax Receivables   236,717    -    -    -    -    236,717    -    236,717 
5  Total Accounts Receivable[1][2]  $35,498,789   $-   $-   $-   $-   $35,498,789   $-   $35,498,789 

 

Footnotes:

 

[1] Amounts are aged from the due date and shown on a gross basis before any adjustment for estimated bad debts and other uncollectable amounts.    

[2] This summary does not include any accrued fees, discounts or intercompany receivables.          

[3] Transaction receivables includes the $1.25M promissory note due December 31, 2021.

 

Page 11 of 14

 

 

In re: Case No. 20-13076 (BLS)
Francesca’s Holdings Corporation, et al. Reporting Period: February 28, 2021 – April 3, 2021
Debtors  

 

MOR-5

Debtor Questionnaire

Reporting Period: February 28, 2021 – April 3, 2021

 

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 postpetition 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.      X1
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

 

 

 

1 There are no employees or locations being operated by the Debtors as of February 1, 2021. As such, the only insurance policy of the Debtors in effect as of February 1, 2021, is the Debtors’ D&O insurance. 

 

Page 12 of 14

 

 

In re: Case No. 20-13076 (BLS)
Francesca’s Holdings Corporation, et al. Reporting Period: February 28, 2021 – April 3, 2021
Debtors  

 

Exhibit A

Balance Sheet by Legal Entity

Reporting Period: February 28, 2021 – April 3, 2021

($’s in USD)

 

Opening Balance Sheet at 02/28/2021

 

#  Category  FCI   FSC   FHC   FLLC   Eliminations   Consolidated 
   Assets                              
   Current Assets                              
1  Cash and cash equivalents  $2,291,536   $95,138   $6,243,418   $-   $-   $8,630,092 
2  Accounts receivable[1]   34,187,846    255,339,221    1,250,000    -    (255,339,221)   35,437,846 
3  Inventories   3,796,328    -    -    -    (3,796,328)   - 
4  Prepaid expenses and other current assets[2]   1,454,728    17,148,108    -    -    -    18,602,835 
5  Total Current Assets   41,730,437    272,582,466    7,493,418    -    (259,135,548)   62,670,773 
                                  
6  Operating lease right-of-use assets, net   -    -    -    -    -    - 
7  Property and equipment, net   -    -    -    -    -    - 
8      Other assets, Net[3]   73,741    12,094    -    -    -    85,835 
                                  
9  Total Assets  $41,804,178   $272,594,560   $7,493,418   $-   $(259,135,548)  $62,756,608 
                                  
   Liabilities And Stockholders' Equity                              
   Current Liabilities                              
10  Accounts payable  $259,494,810   $21,660,545   $857,028   $-   $(255,339,221)  $26,673,162 
11  Accrued liabilities[4]   219,683    239,968    -    -    -    459,650 
12  Current portion of long-term debt   -    -    -    -    -    - 
13  Current portion of operating lease liabilities[5]   56,032,976    101,918    -    -    -    56,134,895 
14  Total Current Liabilities   315,747,469    22,002,431    857,028    -    (255,339,221)   83,267,707 
                                  
15  Operating lease liabilities   -    -    -    -    -    - 
16  Long-term debt, net   -    -    -    -    -    - 
17  Other liabilities   (209,976,567)   53,968,048    156,528,841    -    (520,322)   - 
                                  
18  Total Liabilities   105,770,902    75,970,479    157,385,869    -    (255,859,543)   83,267,707 
                                  
19  Preferred Stock   -    -    -    -    -    - 
                                  
   Stockholders' Equity                              
20       Common stock   -    1    39,449    -    (2)   39,448 
21       APIC   -    8,609,538    113,157,531    -    (8,609,537)   113,157,532 
22       Retained earnings   (63,966,724)   188,014,542    (103,068,049)   -    5,333,534    26,313,303 
23       Treasury stock   -    -    (160,021,383)   -    -    (160,021,383)
24  Total Stockholders' Equity   (63,966,724)   196,624,081    (149,892,451)   -    (3,276,005)   (20,511,099)
                                  
25  Total Liabilities And Stockholders' Equity  $41,804,178   $272,594,560   $7,493,418   $-   $(259,135,548)  $62,756,608 

 

Footnotes:

 

[1]   Accounts receivable includes $34.1M income tax receivable, a $1.25M promissory note (due December 31, 2021) as a result of the Sale Transaction, $268K of sales tax receivables, and $8K of landlord receivables due to rent overpayments.              

[2]   Prepaid expenses and other current assets includes $1.3M of prepaid D&O insurance and restricted cash as detailed in the table below:

 

Entity  FCI   FCI   FSC   FSC   FSC   FSC 
Account Description   Cure Escrow    Utility Deposit    Professional Fee    Stub Rent Escrow    Purchase Price Escrow    D&O Insurance 
Balance ($M)  $1.3   $0.2   $7.0   $4.5   $2.4   $2.0 

 

[3]   Other assets, Net includes $74K of prepetition boutique utility and security deposits held by FCI and $12K of store supply deposits held by FSC that will be used to offset future payments.

[4]   FCI accrued liabilities includes $188K of accrued payroll taxes and $32K of accrued sales tax.  FSC accrued liabilities includes $240K of accrued severance and payroll taxes.

[5] FCI current portion of operating lease liabilities includes $31.4M of unpaid rent, $24.4M of lease rejection costs, and $265K of percent rent accruals.

 

Page 13 of 14

 

 

In re: Case No. 20-13076 (BLS)
Francesca’s Holdings Corporation, et al. Reporting Period: February 28, 2021 – April 3, 2021
Debtors  

 

Exhibit B

Disbursements by Legal Entity

Reporting Period: February 28, 2021 – April 3, 2021

($’s in USD)

 

#  Debtor Name  Abbreviation  Case Number  Disbursements[1] 
1  Francesca's Holdings Corporation  FHC  20-13076  $- 
2  Francesca's, LLC  FLLC  20-13077   - 
3  Francesca's Collections, Inc.  FCI  20-13078   82,639 
4  Francesca's Services Corporation  FSC  20-13079   820,521 
5  Total        $903,160 

 

[1] Includes disbursements made February 28, 2021 - April 3, 2021.  

 

Page 14 of 14