Exhibit 99.1

Variance Report

(US $ MMs)

 

                1 Week From: 4-Oct to 10-Oct     4 Weeks From: 13-Sep to 10-Oct  
Variance Report(1)    Week Beginning
Week(s) Ending
    Budget
4-Oct
10-Oct
    Actual
4-Oct
10-Oct
    Budget
$
    Variance
%
    Budget
13-Sep
10-Oct
    Actual
13-Sep
10-Oct
    Budget
$
    Variance
%
 
   Net Sales      $ 134.6     $ 126.9     $ (7.7     -5.7   $ 488.0     $ 511.2     $ 23.2       4.7

Collections & Disbursements

 

               

Cash Receipts

                  

1

   Sales Receipts      $ 136.4     $ 142.6     $ 6.3       4.6   $ 514.6     $ 574.6     $ 60.0       11.7

2

   Other Receipts        2.5       6.7       4.1       161.5     95.6       86.0       (9.6     -10.0
       

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Collections

     $ 138.9     $ 149.3     $ 10.4       7.5   $ 610.2     $ 660.7     $ 50.4       8.3

Operating Disbursements

                  

3

   Domestic Merchandise Vendor

 

  $ (53.4   $ (56.7   $ (3.3     -6.2   $ (216.0   $ (273.0   $ (57.0     -26.4

4

   Import Merchandise Vendor

 

    (26.6     (23.1     3.6       13.3     (201.6     (108.3     93.4       46.3

5

   Sales, Use, and Other Taxes

 

    (1.4     (2.8     (1.3     -91.0     (43.6     (36.7     6.9       15.9

6

   Freight, Duty, and Broker

 

    (9.1     (7.0     2.1       23.3     (48.7     (32.8     15.9       32.6

7

   Payroll and Benefits        (16.8     (19.2     (2.4     -14.5     (126.6     (108.2     18.4       14.5

8

   Occupancy        (18.9     (6.9     12.1       63.8     (54.4     (45.4     9.0       16.5

9

   Non-Marketing Operating (NFR)

 

    (15.0     (15.9     (0.9     -5.7     (58.0     (77.8     (19.8     -34.1

                 10

   Marketing        (3.0     (6.7     (3.6     -119.3     (12.8     (20.5     (7.6     -59.5

11

   Other        —         (0.1     (0.1     0.0     —         (0.6     (0.6     0.0
       

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Disbursements

 

  $ (144.3   $ (138.2   $ 6.1       4.2   $ (761.8   $ (703.3   $ 58.5       7.7

Non-Operating Disbursements

 

               

12

   Debt Service and Fees      $ (0.5   $ (22.2   $ (21.7     -4341.0   $ (31.3   $ (34.5   $ (3.1     -10.0

13

   Restructuring Professionals

 

    (1.2     (2.9     (1.7     -142.5     (17.6     (9.9     7.7       43.8

14

   Other Non-Operating        (0.5     (0.0     0.5       92.8     (5.7     (4.6     1.0       18.3
       

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Non-Operating Disbursements

 

  $ (2.2   $ (25.1   $ (22.9     -1034.9   $ (54.6   $ (49.0   $ 5.6       10.3
       

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Cash Flow

     $ (7.6   $ (14.0   $ (6.4     84.2   $ (206.2   $ (91.6   $ 114.6       55.6
       

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Notes:

 

(1)

This variance report reflects measurements against the Third Updated DIP Budget


Covenant Testing

($ MMs)

 

 

 

                4 Weeks From: 13-Sep to 10-Oct        
Variance Report(1)          Budget
13-Sep
10-Oct
    Actual
13-Sep
10-Oct
    Variance to Budget
%
    Threshold Test  
Cash Flow Tests    Test %                          

1) Actual Receipts

             Test  

1

   Sales Receipts      85.0   $ 514.6     $ 574.6        

2

   Other Receipts      85.0     95.6       86.0        
     

 

 

   

 

 

   

 

 

   

 

 

     

Total Receipts

     85.0   $ 610.2     $ 660.7       108.3     Pass  
                                     
 

2) Actual Disbs. to Merchandise Vendors

             Test  

3

   Domestic Merchandise Vendor      110.0   $ (216.0   $ (273.0      

4

   Import Merchandise Vendor      110.0     (201.6     (108.3      
     

 

 

   

 

 

   

 

 

   

 

 

     

Total Merchandise Vendor Disbursements

     110.0   $ (417.6   $ (381.2     91.3     Pass  

3) Actual Disbursements (excl. Pro Fees)

          

3

   Domestic Merchandise Vendor      112.5   $ (216.0   $ (273.0    

4

   Import Merchandise Vendor      112.5     (201.6     (108.3    

5

   Sales, Use, and Other Taxes      112.5     (43.6     (36.7    

6

   Freight, Duty, and Broker      112.5     (48.7     (32.8    

7

   Payroll and Benefits      112.5     (126.6     (108.2    

8

   Occupancy      112.5     (54.4     (45.4    

9

   Non-Marketing Operating (NFR)      112.5     (58.0     (77.8    

                 10

   Marketing      112.5     (12.8     (20.5    

11

   Other      112.5     —         (0.6    
     

 

 

   

 

 

   

 

 

     

Operating Disbursements

     $ (761.8   $ (703.3    
 

10

   Debt Service and Fees      112.5     (31.3     (34.5       Test  

11

   Other Non-Operating      112.5     (5.7     (4.6      
     

 

 

   

 

 

   

 

 

       

Non-Operating Disbursements

     $ (37.0   $ (39.1      
     

 

 

   

 

 

   

 

 

   

 

 

     

Total Disbursements (excl. Pro Fees)

     112.5   $ (798.8   $ (742.4     92.9     Pass  
     

 

 

   

 

 

   

 

 

   

 

 

   

Notes:

 

(1)

This variance report reflects measurements against the Third Updated DIP Budget


Covenant Testing

(US $ MMs)

 

 

 

              

Third Updated DIP Budget

          

Actuals

Weekly Build Up

        
Variance Report(1)     19-Sep     26-Sep     3-Oct     10-Oct     Total     19-Sep     26-Sep     3-Oct     10-Oct     Total  
Cash Flow Tests   Test%                                                              

1) Actual Receipts

                         

1

   Sales Receipts     85.0   $ 129.5     $ 125.6     $ 123.1     $ 136.4     $ 514.6     $ 141.5     $ 139.5     $ 151.1     $ 142.6     $ 574.6  

2

   Other Receipts     85.0     1.3       91.1       0.7       2.5       95.6       3.6       73.9       1.8       6.7       86.0  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Receipts

    85.0 %    $ 130.8     $ 216.7     $ 123.8     $ 138.9     $ 610.2     $ 145.1     $ 213.4     $ 152.9     $ 149.3     $ 660.7  
   

2) Actual Disbs. to Merchandise Vendors

 

               

3

   Domestic Merchandise Vendor     110.0   $ (40.3   $ (42.2   $ (80.1   $ (53.4   $ (216.0   $ (79.3   $ (68.6   $ (68.3   $ (56.7   $ (273.0

4

   Import Merchandise Vendor     110.0     (60.8     (68.7     (45.6     (26.6     (201.6     (27.2     (28.6     (29.3     (23.1     (108.3
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Merchandise Vendor Disbursements

    110.0 %    $ (101.1   $ (110.8   $ (125.7   $ (80.0   $ (417.6   $ (106.6   $ (97.2   $ (97.7   $ (79.7   $ (381.2
   

3) Actual Disbursements (excl. Pro Fees)

 

                 

3

   Domestic Merchandise Vendor     112.5   $ (40.3   $ (42.2   $ (80.1   $ (53.4   $ (216.0   $ (79.3   $ (68.6   $ (68.3   $ (56.7   $ (273.0

4

   Import Merchandise Vendor     112.5     (60.8     (68.7     (45.6     (26.6     (201.6     (27.2     (28.6     (29.3     (23.1     (108.3

5

   Sales, Use, and Other Taxes     112.5     (18.5     (19.1     (4.5     (1.4     (43.6     (20.7     (12.7     (0.6     (2.8     (36.7

6

   Freight, Duty, and Broker     112.5     (9.2     (22.1     (8.3     (9.1     (48.7     (5.0     (14.5     (6.4     (7.0     (32.8

7

   Payroll and Benefits     112.5     (42.9     (17.0     (50.0     (16.8     (126.6     (30.5     (20.2     (38.3     (19.2     (108.2

8

   Occupancy     112.5     (7.5     (13.1     (14.9     (18.9     (54.4     (7.0     (16.0     (15.6     (6.9     (45.4

9

   Non-Marketing Operating (NFR)     112.5     (10.7     (22.6     (9.7     (15.0     (58.0     (18.1     (21.3     (22.5     (15.9     (77.8

                 10

   Marketing     112.5     (3.7     (3.0     (3.1     (3.0     (12.8     (4.6     (6.1     (3.1     (6.7     (20.5

11

   Other     112.5     —         —         —         —         —         (0.4     (0.1     (0.1     (0.1     (0.6
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Disbursements

    $ (193.5   $ (207.7   $ (216.3   $ (144.3   $ (761.8   $ (192.7   $ (188.2   $ (184.2   $ (138.2   $ (703.3
   

10

   Debt Service and Fees     112.5     (0.5     (0.5     (29.8     (0.5     (31.3     (0.5     (0.5     (11.2     (22.2     (34.5

11

   Other Non-Operating     112.5     (1.7     (1.7     (1.7     (0.5     (5.7     (3.8     (0.2     (0.5     (0.0     (4.6
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-Operating Disbursements

    $ (2.2   $ (2.2   $ (31.5   $ (1.0   $ (37.0   $ (4.4   $ (0.7   $ (11.7   $ (22.2   $ (39.1
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Disbursements (excl. Pro Fees)

    112.5   $ (195.7   $ (209.9   $ (247.8   $ (145.3   $ (798.8   $ (197.1   $ (188.9   $ (195.9   $ (160.4   $ (742.4
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                                                                          

 

Notes:

 

(1)

This variance report reflects measurements against the Third Updated DIP Budget


Book Cash Report

(USD $)

 

 

 

          Book Cash Balance  
Consolidated Book Cash Accounts    10-Oct-20  

Debtor Accounts

  

1

   Short Term Investment    $ 607,177,270  

2

   Escrows      12,536,828  

3

   International (incl. non-Debtors)      15,615,428  

4

   Store Accounts      3,686,740  

5

   Other Operating Accounts      268,274,795  

6

   Other Domestic non-Debtor Accounts      4,841,878  

7

   Cash on Hand (In Stores)      25,925,441  

8

   Cash In Transit      33,841,721  
     

 

 

 

Total Holdings and Subsidiaries Book Cash

   $ 971,900,101  
     

 

 

 
  

Test Threshold

   $ 50,000,000  
  

Minimum Required Book Cash

     Pass  


ABL Borrowing Base

As of October 10, 2020

 

A.

   Available Credit Card Receivables    $ 34,305,462     

B.

   Available Inventory    $ 1,404,728,698     

C.

   Availability Reserves    $ 140,640,236     

D.

   Borrowing Base (A+B-C)    $ 1,298,393,923     
   Lower of:      
  

Borrowing Base

   $ 1,298,393,923     
  

Revolving Commitment

   $ 2,350,000,000     

E.

         $ 1,298,393,923  
   Revolving Credit Outstandings:      
  

Revolving Loans

   $ 1,262,972,284     
  

Standby Letters of Credit

   $ 137,035,059     
  

Commercial Letters of Credit

   $ 0     

F.

   Total Revolving Credit Outstandings       $ 1,400,007,343  

G.

   Facility Availability (E-F)       -$ 101,613,419  

H.

   Minimum Excess Availability (7.5% of E up to $200,000,000)       $ 97,379,544  

I.

   Facility Availability After Minimum Excess Availability Covenant (G-H)

 

   -$ 198,992,963  


Summary of Wind Down Budget

As of October 16, 2020 (unless otherwise stated)

(US$ in 000’s)

 

Description

   Estimated
Amount
     Estimated
Reserve
Cash Cost
 

SAP Claims/Unsecured Claims/Cure Amounts(1)(7)

   Estimated
Claim
        

Total Estimated Cure Amounts

   $ 57,025      $ 57,025  

Secured Claims

     

DIP

     900,000        —    

ABL

     1,255,816        —    

First Lien

     469,261        —    

Second Lien

     400,000        —    

Other Secured

     1,666,805        TBD  

Filed Unsecured Claims

     2,844,360        TBD  

Total Claims / Cure Amounts

   $ 7,593,267      $ 57,025  

Potential Excluded Liabilities - Net Working Capital(2)(3)(7)

   GAAP Liability
as of 9/5 TB
        

Total Potential Excluded Liabilities - NWC

   $ 201,752        TBD  

Potential Excluded Liabilities - Long Term Liabilities(2)(3)(7)

   GAAP Liability
as of 9/5 TB
        

Total Potential Excluded Liabilities - LTL

   $ 124,081        TBD  

Estate Costs(3)(4)(7)(8)

   Estimated
Cost
        

Total Estate Costs

   $ 60,534      $ 60,534  

Footnotes:

 

(1)

All swap costs, accrued interest, accrued fees, and secured debt are assumed to have been settled at emergence and not included within the wind down budget herein.

(2)

These balances represent the GAAP liability from the 9/5 trial balance. Currently assessing the impact of cash vs. book GAAP accounting, which made materially change amounts.

(3)

Where noted TBD, the estimated reserve cash cost is currently unknown, if any, until the finalization of the Asset Purchase Agreement.

(4)

Assumes all costs of keeping PropCo properties along with employee leasing arrangements will be fully covered by OpCo.

(7)

Governmental Bar Date is November 12th and could materially change the asserted amount of the claims. Additionally, further estimation necessary for taxes that may not be subject to bar date or be reflected in GAAP accrual.

(8)

To the extent PropCo emergence occurs after January 2021, additional state income taxes could arise.


Lease Restructuring Savings Summary

 

    Store
Count
    FY 2020
Savings
    FY 2021
Savings
    FY 2022
Savings
    FY 2023+
Savings
    Total
Term
Reduction
Savings
    Total
Rent
Abatement
    Total
Rent
Deferral
    Total
Debtor
Cure
    Total Cure
Waiver
    Total
Cure
Deferral
    Total Deal
Savings
(not incl.

Cure)
 

Approved - JCP & Lenders

    160     $ 34,218,238     $ 25,034,248     $ 20,828,782     $ 35,193,209     $ 0     $ 16,116,562     $ 0     $ 4,378,855     $ 4,269,675     $ 0     $ 115,274,477  

Approved by Company

    22     $ 5,142,851     $ 4,141,845     $ 3,593,825     $ 6,327,727     $ 0     $ 2,557,918     $ 0     $ 628,263     $ 628,264     $ 0     $ 19,206,248  

Pending Approval by Company

    1       —         —         —         —         —         —         —         —         —         —         —    

Negotiations Ongoing

    266       —         —         —         —         —         —         —         —         —         —         —    

No Deal Possible

    0       —         —         —         —         —         —         —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTALS (Approved & Submitted)

    182     $ 39,361,090     $ 29,176,093     $ 24,422,607     $ 41,520,935     $ 0     $ 18,674,480     $ 0     $ 5,007,118     $ 4,897,939     $ 0     $ 134,480,725  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Forecasted Performance Summary

 

    Store
Count
    FY 2020
Sales
    FY 2021 Sales     FY 2022 Sales     FY 2020
Unallocated 
Store 
Contribution 
Profit
    FY 2021
Unallocated
Store

Contribution 
Profit
    FY 2022
Unallocated
Store

Contribution 
Profit
    FY 2020
Unallocated 
Store 
Contribution
Margin 
(Mean)
    FY 2020
Unallocated
Store 
Contribution
Margin 
(Median)
    FY 2021
Unallocated
Store
Contribution
Margin 
(Mean)
    FY 2021
Unallocated
Store
Contribution
Margin 
(Median)
 

Approved - Lease Restructuring Approved by Company and Lenders

    160     $ 892,356,637     $ 1,447,780,749     $ 1,444,365,692     -$ 19,313,632     $ 119,195,324     $ 176,220,250       -2.04     -1.76     7.79     8.83

Approved - Lease Restructuring Approved by Company Only

    22     $ 142,706,260     $ 237,132,903     $ 241,804,767     -$ 756,232     $ 22,697,934     $ 31,792,812       -0.93     0.12     9.35     9.64

Forecasted Performance with Lease Restructuring Summary

 

    Store
Count
    FY 2020
Sales
    FY 2021 Sales     FY 2022 Sales     FY 2020
Unallocated 
Store 
Contribution 
Profit
    FY 2021
Unallocated
Store

Contribution 
Profit
    FY 2022
Unallocated
Store

Contribution 
Profit
    FY 2020
Unallocated 
Store 
Contribution
Margin 
(Mean)
    FY 2020
Unallocated
Store 
Contribution
Margin 
(Median)
    FY 2021
Unallocated
Store
Contribution
Margin 
(Mean)
    FY 2021
Unallocated
Store
Contribution
Margin 
(Median)
 

Approved - Lease Restructuring Approved by Company and Lenders

    160     $ 892,356,637     $ 1,447,780,749     $ 1,444,365,692     $ 14,904,606     $ 144,229,572     $ 197,049,032       1.92     2.00     10.51     10.27

Approved - Lease Restructuring Approved by Company Only

    22     $ 142,706,260     $ 237,132,903     $ 241,804,767     $ 4,386,619     $ 26,839,779     $ 35,386,637       2.96     2.61     11.35     11.15

Note: Tables above reflect information as of October 13, 2020


SUMMARY - LEASE RESTRUCTURINGS APPROVED BY COMPANY AND LENDERS

(AS OF OCTOBER 13, 2020)

 

LOGO


SUMMARY - LEASE RESTRUCTURINGS APPROVED BY COMPANY AND LENDERS

(AS OF OCTOBER 13, 2020)

 

LOGO

 

(1)

Final Control Date represents exercise of all available extension options.


SUMMARY - LEASE RESTRUCTURINGS APPROVED BY COMPANY ONLY

(AS OF OCTOBER 13, 2020)

 

LOGO


SUMMARY - LEASE RESTRUCTURINGS APPROVED BY COMPANY ONLY

(AS OF OCTOBER 13, 2020)

 

LOGO

 

(1)

Final Control Date represents exercise of all available extension options.


Top Suppliers for the Fiscal Year Ended February 1, 2020

(Measured by Dollar Volume of Purchases)

 

     Fiscal Year Ended February 1, 2020 Spend
($USD)
 

1. Merchandise Supplier - National Brand Apparel and Footwear

     329,957,424  

2. Service Provider - Marketing

     216,378,390  

3. Service Provider - Freight and Shipping

     207,025,578  

4. Merchandise Supplier – National Brand Apparel

     193,015,132  

5. Service Provider – Freight and Shipping

     148,591,542  

6. Service Provider – Instore Services

     94,476,695  

7. Service Provider – Marketing

     87,918,316  

8. Merchandise Supplier – Private Brand Apparel

     73,451,234  

9. Merchandise Supplier – National Brand Apparel

     68,256,781  

10. Service Provider - Marketing

     66,438,684  

Top 11-20 Suppliers

     529,968,386  


Letters of Credit

 

Beneficiary / Category

   Letters of Credit Balances
As of October 3, 2020 in US$
    

Expiration

Insurance

   $ 114,255,313      Various dates between February 2021 and June 2021

Utility Support

   $ 1,398,427      Various dates between October 2020 and May 2021

Vendor Support

   $ 21,527,719      Various dates between October 2020 and April 2021

Total

   $ 137,181,459      Various dates between October 2020 and June 2021


DRAFT - SUBJECT TO CHANGE

CONSIGNMENT POOL REPORT

AS OF OCTOBER 13, 2020

 

            Open Invoice Data as of Oct 13, 2020  
     Pre-Petition
Inventory Amount
     Pre-Petition Open
Invoices [2]
     Post-Petition
Open Invoices
     Total Open
Invoices
 

Total

   $ 118,864,743.65      $ (299,032.35    $ 4,474,429.61      $ 4,175,397.26  

 

[2] 

The large number of negative pre-petition invoices is primarily due to inventory reconciliations and adjustments made by JCP during the COVID-19 shutdown period