GLOBAL NOTES AND STATEMENT OF LIMITATIONS, METHODOLOGY, AND DISCLAIMER REGARDING DEBTORS' SCHEDULES AND STATEMENTS

Transcription

1 GLOBAL NOTES AND STATEMENT OF LIMITATIONS, METHODOLOGY, AND DISCLAIMER REGARDING DEBTORS' SCHEDULES AND STATEMENTS The Schedules of Assets and Liabilities and Statements of Financial Affairs (the "Schedules and Statements") filed by Harry & David Holdings, Inc (Case No ), Harry and David (Case No ), Harry & David Operations, Inc. (Case No ) and Bear Creek Orchards, Inc. (Case No ), (collectively, the "Debtors") are unaudited and were prepared pursuant to section 521 of Title 11 of the United States Code and Rule 1007 of the Federal Rules of Bankruptcy Procedure (the "Bankruptcy Rules") by the Debtors' management. While the Debtors' management has made reasonable efforts to file complete and accurate Schedules and Statements based upon information available at the time of preparation, the Schedules and Statements remain subject to further review and verification by the Debtors. Subsequent information may result in material changes in financial and other data contained in the Schedules and Statements. The Debtors reserve the right to amend their Schedules and Statements from time to time as may be necessary or appropriate. The Global Notes and Statement of Limitations, Methodology, and Disclaimer Regarding Debtors' Schedules and Statements (the "Global Notes") is incorporated by reference in, and comprises an integral part of, the Schedules and Statements and should be referred to and reviewed in connection with any review of the Schedules and Statements. 1) Description of the Cases and "As Of" Information Date. On, March 28, 2011 (the "Petition Date"), each Debtor filed a voluntary petition for relief under Chapter 11 of title 11 of the United States Code (the "Bankruptcy Code"). The Debtors' cases are jointly administered under case number The Debtors currently operate their businesses and possess their property as debtors-in-possession under sections 1107 and 1108 of the Bankruptcy Code. Except as otherwise noted, all asset and liability information is as of March 26, 2011, the close of the Debtors' last business day prior to the Petition Date. The Debtors have made every reasonable effort to allocate liabilities between pre-petition Date and post-petition Date periods based on the information and research conducted in connection with the preparation of the Schedules and Statements. 2) Basis of Presentation. For financial reporting purposes, the Debtors prepare consolidated financial statements, which include financial information for Harry & David Holdings, Inc. and its direct and indirect subsidiaries. The Schedules and Statements are unaudited and reflect the Debtors' best efforts to report the assets and liabilities of each Debtor on an unconsolidated basis. These Schedules and Statements do not purport to represent financial statements prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), nor are they intended to fully reconcile to any financial statements otherwise prepared and/or distributed by the Debtors. 3) Causes of Action. Despite their reasonable efforts, as described above, the Debtors may not have set forth all of their claims, causes of actions and potential recoveries in their Schedules and Statements. The Debtors reserve all of their rights with respect to any causes of action they may possess, and neither these Global Notes nor the Schedules and Statements shall be deemed a waiver of any such causes of action. CHI v3

2 4) Insiders. The listing of a person or other entity as an "insider" in the Schedules and Statements is not intended to be nor should it be construed as a legal characterization of such person or other entity as an "insider", nor should it be construed as an admission that such person or other entity is an "insider", as defined in section 101(31) of the Bankruptcy Code or as otherwise defined by applicable law, including, without limitation, any state or federal securities law. The Debtors reserve their right to dispute or challenge the designation of any individual or entity as an insider in connection with any other matter arising in the Debtors' chapter 11 cases. 5) Personal Information. The Debtors have not included addresses of current and former employees and directors in the Schedules and Statements. In addition, the addresses of current and former employees have been redacted in certain instances to protect their privacy. 6) Intellectual Property Rights. The omission of certain intellectual property from the Schedules and Statements shall not be an admission that such intellectual property rights have been abandoned, have been terminated or otherwise expired by their terms or have been assigned or otherwise transferred pursuant to a sale, acquisition or other transaction. Conversely, inclusion of certain intellectual property rights shall not be construed to be an admission that such intellectual property rights have not been abandoned, have not been terminated or otherwise expired by their terms or have been assigned or otherwise transferred pursuant to a sale, acquisition or other transaction. In accordance with the foregoing, the Debtors reserve all of their rights with respect to the legal status of any and all intellectual property rights, regardless of whether such intellectual property rights are or are not listed in the Schedules and Statements. 7) Summary of Significant Reporting Policies. The Schedules and Statements have been signed by Paul Kosturos, Assistant Restructuring Officer for each of the Debtors. In reviewing and signing the Schedules and Statements, Mr. Kosturos has necessarily relied upon the efforts, statements and representations of the Debtors' accounting and non-accounting personnel. Mr. Kosturos has not personally verified the accuracy of each such statements and representations, including, but not limited to, statements and representations concerning amounts owed to creditors. Each of the Debtors made reasonable efforts to accurately report asset, liability, disbursement and other information on its Statements and Schedules, and the Debtors adopted the following conventions in the preparation of the Schedules and Statements. a. Fair Market Value; Book Value. Unless otherwise noted, the value of each asset and liability of a Debtor is shown on the basis of the book value of such asset or liability in the Debtors' accounting books and records. As applicable, assets that have been fully depreciated or were expensed for accounting purposes have no net book value. As a result, the value of the Debtors' assets and liabilities set forth on the Schedules and Statements may not always reflect the current market values of such property and/or liabilities. The Debtors reserve their right to amend or adjust the value of each asset or liability set forth herein. b. Liabilities. The Debtors have sought to allocate liabilities between the pre-petition Date and post-petition Date periods based on the information and research that was conducted in connection with the preparation of the Schedules and Statements. As additional information becomes available and further research is conducted, the allocation of liabilities between pre-petition Date and post-petition Date may change. The Debtors also reserve the CHI v3-2-

3 right to alter the priority and allocation of liability to the extent additional information becomes available. c. Intercompany and Other Transfers. Although separate Schedules and Statements have been prepared and filed for each of the Debtors, certain of the information set forth in the Schedules and Statements has been prepared on a consolidated basis. As a result, the Schedules and Statements do not reflect intercompany activity or balances. In addition, pursuant to the terms of the Debtors' prepetition cash management system, each of the individual Debtors' operating and payable accounts (to the extent a Debtor maintains an account) generally are consolidated and transferred into a general concentration account on regular intervals. The details regarding these transactions are not provided in the Schedules and Statements. d. Real Property and Personal Property Leased. In the ordinary course of their businesses, the Debtors lease real property and various articles of personal property, including furniture, fixtures and equipment, from certain third-party lessors. The Debtors have made reasonable efforts to list all such leases in the Schedules and Statements. The property subject to leases is not reflected in the Schedules and Statements as either owned property or assets of the Debtors or property or assets of third-parties within the control of the Debtors. The Debtors have made reasonable efforts to include lease payments on Schedule D (secured debt) to the extent the lessor filed a UCC-1. However, nothing in the Schedules or Statements is or shall be construed as an admission or determination as to the legal status of any lease (including whether to assume and assign or reject such lease or whether it is a true lease or a financing arrangement), and the Debtors reserve all of their rights with respect to all such issues. e. Claims. Certain of the Debtors' Schedules and Statements list creditors and set forth the Debtors' estimate of the claims of creditors as of the Petition Date. The Bankruptcy Court has authorized the Debtors to, among other things: (i) honor certain prepetition customer obligations; (ii) pay certain insurance financing premiums; (iii) pay prepetition amounts owed to certain potential lienholders; (iv) pay certain prepetition governmental obligations and taxes; (v) pay certain distribution network vendors; (vi) and pay certain prepetition workers compensation obligations. As a result, the actual unpaid claims of creditors that ultimately may be allowed in these cases may differ from the amounts set forth in the Schedules and Statements. The inclusion of any such amounts in the Schedules and Statements shall not be deemed to obligate the Debtors to pay such amounts. f. Disputed, Contingent and/or Unliquidated Claims. Schedules D, E and F permit each of the Debtors to designate a claim as disputed, contingent and/or unliquidated. A failure to designate a claim on any of these Schedules as disputed, contingent and/or unliquidated does not constitute an admission that such claim is not subject to objection. The Debtors reserve the right to dispute, or assert offsets or defenses to, any claim reflected on these Schedules as to amount, liability or status. Moreover, the Debtors reserve the right to amend its Schedules and Statements as necessary and appropriate. 8) General Conventions Relating to the Schedules of Assets and Liabilities. The Debtors adopted the following conventions in connection with the preparation of the Schedules: CHI v3-3-

4 a. Schedule B. Amounts held in bank accounts are as of either March 25, 2011 or March 31, 2011, depending upon the availability of bank statements at the Debtors various depository institutions. b. Schedule D. Except as otherwise agreed pursuant to a stipulation or agreed order or general order entered by the Bankruptcy Court, the Debtors reserve the right to dispute or challenge the validity, perfection or immunity from avoidance of any lien purported to be granted or perfected in any specific asset to a secured creditor listed on Schedule D of any Debtor. Moreover, although the Debtors may have scheduled claims of various creditors as secured claims, the Debtors reserve all of their rights to dispute or challenge the secured nature of any such creditor's claim or the characterization of the structure of any such transaction or any document or instrument (including without limitation, any intercompany agreement) related to such creditor's claim. The descriptions provided on Schedule D are intended only to be a summary. Reference to the applicable loan agreements and related documents is necessary for a complete description of the collateral and the nature, extent and priority of any liens. Nothing in the Global Notes or the Schedules and Statements shall be deemed a modification or interpretation of the terms of such agreements. c. Schedule E. (i) Employee Claims. The Bankruptcy Court entered an order authorizing the Debtors to pay prepetition employee wages, salaries, benefits and other obligations. The Debtors employed approximately 1,950 employees as of the Petition Date. Accordingly, the Debtors believe the vast majority of employee claims against the Debtors for prepetition amounts have been paid as of the time that the Schedules and Statements were prepared. There may exist, however, certain employee claims for items not authorized to be paid by order of the Bankruptcy Court. To the extent any of these claims exist, they have been included in the Schedules and Statements. Due to time restraints and accounting limitations, employee claims are listed in the aggregate. If necessary, the Debtors will provide claim information on an individual employee basis upon request. (ii) Prepetition Customer Programs. The Bankruptcy Court entered an order granting the Debtors the authority to honor certain prepetition customer programs. Accordingly, certain debts arising out of customer programs have not been included in the Schedules. With respect to gift cards, there is no way for the Debtors to ascertain the identity of the holders of such gift cards or whether such cards are still in existence. The Debtors estimate that as of the Petition Date no more than $5 million of gift cards were outstanding. These amounts are not specifically identified on the Schedules. d. Schedule F. (i) Credits and Allowances. The claims of individual creditors for, among other items, merchandise, goods, services or taxes have been recorded on the Schedules at the amounts listed in the Debtors' books and records and do not reflect credits or allowances due from such creditors. The Debtors reserve all of their rights with respect to such credits and allowances. CHI v3-4-

5 (ii) Deferred Liabilities. Schedule F does not include certain deferred charges or deferred liabilities. Such amounts are, however, reflected on the Debtors' books and records as required in accordance with GAAP. e. Schedule G. While reasonable efforts have been made to ensure the accuracy of the Schedule of Executory Contracts, inadvertent errors or omissions may have occurred. The Debtors hereby reserve all of their rights to dispute the validity, status or enforceability of any contract, agreement or lease set forth on Schedule G and to amend or supplement such Schedule as necessary. The contracts, agreements and leases listed on Schedule G may have expired or may have been modified, amended or supplemented from time to time by various amendments, restatements, waivers, estoppel certificates, letter and other documents, instruments and agreements which may not be listed therein. Certain of the real property leases listed on Schedule G may contain renewal options, guarantees of payments, options to purchase, rights of first refusal, rights to lease additional space and other miscellaneous rights. Such rights, powers, duties and obligations are not set forth on Schedule G. Certain of the executory agreements may not have been memorialized and could be subject to dispute. Additionally, the Debtors may be parties to various other agreements concerning real property, such as easements, rights of way, subordination, non-disturbance, supplemental agreements, amendments/letter agreements, title documents, consents, site plans, maps and other miscellaneous agreements. Such agreements, if any, are not set forth on Schedule G. Certain of the agreements listed on Schedule G may be in the nature of conditional sales agreements or secured financings. The presence of a contract or agreement on Schedule G does not constitute an admission that such contract or agreement is an executory contract or unexpired lease. The Debtors reserve all of their rights, claims and causes of action with respect to the contracts and agreements listed on these Schedules and Statements, including the right to dispute or challenge the characterization or the structure of any transaction, document or instrument. f. Schedule H. Codefendants in litigation matters involving the Debtors are not listed in Schedule H. 9) General Conventions Relating to the Statements of Financial Affairs. The Debtors adopted the following conventions in connection with the preparation of the Statements. a. Statement 5. The Debtors are unaware of any repossessions, foreclosures or returns other than returns of damaged or defective goods to vendors in the ordinary course of business. b. Statement 7. The Debtors routinely donate products that may not otherwise be sold for charitable causes. In the ordinary course of their businesses, the Debtors do not maintain records of these donations. c. Statement 13. The Debtors incur certain setoffs and other similar rights during the ordinary course of business. Setoff in the ordinary course can result from various items, including, but not limited to, pricing discrepancies, returns and other disputes between the Debtors' customers and their suppliers. The Debtors generally do not account for these ordinary course setoffs and other similar rights separately, and therefore, these ordinary course setoffs and other similar rights are excluded from the Debtors' Schedules and Statements in most instances. CHI v3-5-

6 d. Statement 19D. The Debtors provide various financial statements to parties for business, statutory, credit financing and other reasons. Past recipients of financial statements include regulatory agencies, financial institutions, shareholders, investment banks, customers, vendors and other parties, as requested. In the ordinary course of their businesses, the Debtors have not maintained records of the entities the Debtors have provided with financial statements. In addition, Harry & David Holdings, Inc. prepares and files with the Securities and Exchange Commission (the "SEC") various forms (the "SEC Filings") pursuant to the Securities Exchange Act of 1934 and other applicable laws. It is the practice of the Debtors to provide the SEC Filings to various parties, including, but not limited to lenders, vendors and other parties, or otherwise refer such parties to the SEC Filings. In the ordinary course of their businesses, the Debtors have not maintained records of the parties that have requested or obtained copies of any SEC Filings. CHI v3-6-

7 B7 (Official Form 7) (12/07) UNITED STATES BANKRUPTCY COURT District Of Delaware In re: Harry and David, Case No Debtor (if known) STATEMENT OF FINANCIAL AFFAIRS This statement is to be completed by every debtor. Spouses filing a joint petition may file a single statement on which the information for both spouses is combined. If the case is filed under chapter 12 or chapter 13, a married debtor must furnish information for both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed. An individual debtor engaged in business as a sole proprietor, partner, family farmer, or self-employed professional, should provide the information requested on this statement concerning all such activities as well as the individual's personal affairs. To indicate payments, transfers and the like to minor children, state the child's initials and the name and address of the child's parent or guardian, such as A.B., a minor child, by John Doe, guardian. Do not disclose the child's name. See 11 U.S.C. 112 and Fed. R. Bankr. P. 1007(m). Questions 1-18 are to be completed by all debtors. Debtors that are or have been in business, as defined below, also must complete Questions If the answer to an applicable question is "None," mark the box labeled "None." If additional space is needed for the answer to any question, use and attach a separate sheet properly identified with the case name, case number (if known), and the number of the question. DEFINITIONS "In business." A debtor is "in business" for the purpose of this form if the debtor is a corporation or partnership. An individual debtor is "in business" for the purpose of this form if the debtor is or has been, within six years immediately preceding the filing of this bankruptcy case, any of the following: an officer, director, managing executive, or owner of 5 percent or more of the voting or equity securities of a corporation; a partner, other than a limited partner, of a partnership; a sole proprietor or self-employed full-time or part-time. An individual debtor also may be in business for the purpose of this form if the debtor engages in a trade, business, or other activity, other than as an employee, to supplement income from the debtor s primary employment. "Insider." The term "insider" includes but is not limited to: relatives of the debtor; general partners of the debtor and their relatives; corporations of which the debtor is an officer, director, or person in control; officers, directors, and any owner of 5 percent or more of the voting or equity securities of a corporate debtor and their relatives; affiliates of the debtor and insiders of such affiliates; any managing agent of the debtor. 11 U.S.C Income from employment or operation of business None State the gross amount of income the debtor has received from employment, trade, or profession, or from operation of the debtor's business, including part-time activities either as an employee or in independent trade or business, from the beginning of this calendar year to the date this case was commenced. State also the gross amounts received during the two years immediately preceding this calendar year. (A debtor that maintains, or has maintained, financial records on the basis of a fiscal rather than a calendar year may report fiscal year income. Identify the beginning and ending dates of the debtor's fiscal year.) If a joint petition is filed, state income for each spouse separately. (Married debtors filing under chapter 12 or chapter 13 must state income of both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.) AMOUNT SOURCE $363,018, June 27, March 27, 2011 Net Revenue

8 In re: Harry and David Case No AMOUNT SOURCE $427,698, Fiscal Year End June 26, 2010 Net Revenue $490,786, Fiscal Year End June 27, 2009 Net Revenue 2. Income other than from employment or operation of business None State the amount of income received by the debtor other than from employment, trade, profession, operation of the debtor's business during the two years immediately preceding the commencement of this case. Give particulars. If a joint petition is filed, state income for each spouse separately. (Married debtors filing under chapter 12 or chapter 13 must state income for each spouse whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.) AMOUNT SOURCE $15,415, Fiscal Year Gain on Repurchase of Senior Notes $1,250, Fiscal Year Gain on Sale of Mineral Rights $9, Other Income* *From 6/27/2010-3/27/ Payments to creditors Complete a. or b., as appropriate, and c. None a. Individual or joint debtor(s) with primarily consumer debts: List all payments on loans, installment purchases of goods or services, and other debts to any creditor made within 90 days immediately preceding the commencement of this case unless the aggregate value of all property that constitutes or is affected by such transfer is less than $600. Indicate with an asterisk (*) any payments that were made to a creditor on account of a domestic support obligation or as part of an alternative repayment schedule under a plan by an approved nonprofit budgeting and creditor counseling agency. (Married debtors filing under chapter 12 or chapter 13 must include payments by either or both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.) OF CREDITOR DATES OF PAYMENTS AMOUNT PAID AMOUNT STILL OWING Not Applicable None b. Debtor whose debts are not primarily consumer debts: List each payment or other transfer to any creditor made within 90 days immediately preceding the commencement of the case unless the aggregate value of all property that constitutes or is affected by such transfer is less than $5,850. (Married debtors filing under chapter 12 or chapter 13 must include payments and other transfers by either or both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.)

9 In re: Harry and David Case No OF CREDITOR DATES OF PAYMENTS/ TRANSFERS AMOUNT PAID OR VALUE OF TRANSFERS AMOUNT STILL OWING See Attached Rider None c. All debtors: List all payments made within one year immediately preceding the commencement of this case to or for the benefit of creditors who are or were insiders. (Married debtors filing under chapter 12 or chapter 13 must include payments by either or both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.) OF CREDITOR AND RELATIONSHIP TO DEBTOR DATE OF PAYMENT AMOUNT PAID AMOUNT STILL OWING See Attached Rider 4. Suits and administrative proceedings, executions, garnishments and attachments None a. List all suits and administrative proceedings to which the debtor is or was a party within one year immediately preceding the filing of this bankruptcy case. (Married debtors filing under chapter 12 or chapter 13 must include information concerning either or both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.) CAPTION OF SUIT AND CASE NATURE OF PROCEEDING COURT OR AGENCY AND LOCATION STATUS OR DISPOSITION See Attached Rider None b. Describe all property that has been attached, garnished or seized under any legal or equitable process within one year immediately preceding the commencement of this case. (Married debtors filing under chapter 12 or chapter 13 must include information concerning property of either or both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.) OF PERSON FOR WHOSE BENEFIT PROPERTY WAS SEIZED DATE OF SEIZURE DESCRIPTION AND VALUE OF PROPERTY 5. Repossessions, foreclosures and returns None List all property that has been repossessed by a creditor, sold at a foreclosure sale, transferred through a deed in lieu of foreclosure or returned to the seller, within one year immediately preceding the commencement of this case. (Married debtors filing under chapter 12 or chapter 13 must include information concerning property of either or both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.)

10 In re: Harry and David Case No OF CREDITOR OR SELLER DATE OF REPOSSESSION, FORECLOSURE SALE, TRANSFER OR RETURN DESCRIPTION AND VALUE OF PROPERTY 6. Assignments and receiverships None a. Describe any assignment of property for the benefit of creditors made within 120 days immediately preceding the commencement of this case. (Married debtors filing under chapter 12 or chapter 13 must include any assignment by either or both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.) OF ASSIGNEE DATE OF ASSIGNMENT TERMS OF ASSIGNMENT OR SETTLEMENT None b. List all property which has been in the hands of a custodian, receiver, or court-appointed official within one year immediately preceding the commencement of this case. (Married debtors filing under chapter 12 or chapter 13 must include information concerning property of either or both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.) OF CUSTODIAN NAME AND LOCATION OF COURT CASE TITLE & DATE OF ORDER DESCRIPTION AND VALUE OF PROPERTY 7. Gifts None List all gifts or charitable contributions made within one year immediately preceding the commencement of this case except ordinary and usual gifts to family members aggregating less than $200 in value per individual family member and charitable contributions aggregating less than $100 per recipient. (Married debtors filing under chapter 12 or chapter 13 must include gifts or contributions by either or both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.) OF PERSON OR ORGANIZATION RELATIONSHIP TO DEBTOR, IF ANY DATE OF GIFT DESCRIPTION AND VALUE OF GIFT See Attached Rider 8. Losses

11 In re: Harry and David Case No None List all losses from fire, theft, other casualty or gambling within one year immediately preceding the commencement of this case or since the commencement of this case. (Married debtors filing under chapter 12 or chapter 13 must include losses by either or both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.) DESCRIPTION AND VALUE OF PROPERTY Merchandise and Fixtures in Harry and David Retail Store Located in Galleria at Roseville Mall in Roseville, CA Merchandise and Fixtures in Harry and David Retail Store Located in Opry Mills Mall in Nashville, TN DESCRIPTION OF CIRCUMSTANCES AND, IF LOSS WAS COVERED IN WHOLE OR IN PART BY INSURANCE, GIVE PARTICULARS Fire Loss - $150, Insurance Recovery - $100, Flood Loss - $27, Insurance Recovery - $0.00 DATE OF LOSS 10/21/2010 5/2/ Payments related to debt counseling or bankruptcy None List all payments made or property transferred by or on behalf of the debtor to any persons, including attorneys, for consultation concerning debt consolidation, relief under the bankruptcy law or preparation of a petition in bankruptcy within one year immediately preceding the commencement of this case. OF PAYEE DATE OF PAYMENT, NAME OF PAYER IF OTHER THAN DEBTOR AMOUNT OF MONEY OR DESCRIPTION AND VALUE OF PROPERTY See Attached Rider 10. Other transfers None a. List all other property, other than property transferred in the ordinary course of the business or financial affairs of the debtor, transferred either absolutely or as security within two years immediately preceding the commencement of this case. (Married debtors filing under chapter 12 or chapter 13 must include transfers by either or both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.) OF TRANSFEREE, RELATIONSHIP TO DEBTOR Vintage Production California LLC A subsidiary of Occidental Petroleum Corporation 9600 Ming Avenue, Suite 300 Bakersfield, CA Unknown - Purchased on Open Market DATE DESCRIBE PROPERTY TRANSFERRED AND VALUE RECEIVED 04/13/2010 Mineral Rights for Wasco Property $1,250, Senior Notes - Repurchased by Debtor $36,638,000*

12 In re: Harry and David Case No *These were bought back periodically during FY2009 None b. List all property transferred by the debtor within ten years immediately preceding the commencement of this case to a self-settled trust or similar device of which the debtor is a beneficiary. NAME OF TRUST OR OTHER DEVICE DATE(S) OF TRANSFER(S) AMOUNT OF MONEY OR DESCRIPTION AND VALUE OF PROPERTY OR DEBTOR'S INTEREST IN PROPERTY 11. Closed financial accounts None List all financial accounts and instruments held in the name of the debtor or for the benefit of the debtor which were closed, sold, or otherwise transferred within one year immediately preceding the commencement of this case. Include checking, savings, or other financial accounts, certificates of deposit, or other instruments; shares and share accounts held in banks, credit unions, pension funds, cooperatives, associations, brokerage houses and other financial institutions. (Married debtors filing under chapter 12 or chapter 13 must include information concerning accounts or instruments held by or for either or both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.) OF INSTITUTION TYPE OF ACCOUNT, LAST FOUR DIGITS OF ACCOUNT, AND AMOUNT OF FINAL BALANCE AMOUNT AND DATE OF SALE OR CLOSING See Attached Rider 12. Safe deposit boxes None List each safe deposit or other box or depository in which the debtor has or had securities, cash, or other valuables within one year immediately preceding the commencement of this case. (Married debtors filing under chapter 12 or chapter 13 must include boxes or depositories of either or both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.) OF BANK OR OTHER DEPOSITORY NAMES AND ADDRESSES OF THOSE WITH ACCESS TO BOX OR DEPOSITORY DESCRIPTION OF CONTENTS DATE OF TRANSFER OR SURRENDER, IF ANY 13. Setoffs None List all setoffs made by any creditor, including a bank, against a debt or deposit of the debtor within 90 days preceding the commencement of this case. (Married debtors filing under chapter 12 or chapter 13 must include information concerning either or both spouses whether or not a joint petition is filed, unless the spouses are separated and a joint petition is not filed.)

13 In re: Harry and David Case No OF CREDITOR DATE OF SETOFF AMOUNT OF SETOFF 14. Property held for another person None List all property owned by another person that the debtor holds or controls. OF OWNER DESCRIPTION AND VALUE OF PROPERTY LOCATION OF PROPERTY 15. Prior address of debtor None If debtor has moved within three years immediately preceding the commencement of this case, list all premises which the debtor occupied during that period and vacated prior to the commencement of this case. If a joint petition is filed, report also any separate address of either spouse. ADDRESS NAME USED DATES OF OCCUPANCY See Attached Rider 16. Spouses and Former Spouses None If the debtor resides or resided in a community property state, commonwealth, or territory (including Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Puerto Rico, Texas, Washington, or Wisconsin) within eight years immediately preceding the commencement of the case, identify the name of the debtor s spouse and of any former spouse who resides or resided with the debtor in the community property state. NAME Not Applicable 17. Environmental Information For the purpose of this question, the following definitions apply: "Environmental Law" means any federal, state, or local statute or regulation regulating pollution, contamination, releases of hazardous or toxic substances, wastes or material into the air, land, soil, surface water, groundwater, or other medium, including, but not limited to, statutes or regulations regulating the cleanup of these substances, wastes, or material. "Site" means any location, facility, or property as defined under any Environmental Law, whether or not presently or formerly owned or operated by the debtor, including, but not limited to, disposal sites. "Hazardous Material" means anything defined as a hazardous waste, hazardous substance, toxic substance, hazardous material, pollutant, or contaminant or similar term under an Environmental Law.

14 In re: Harry and David Case No None a. List the name and address of every site for which the debtor has received notice in writing by a governmental unit that it may be liable or potentially liable under or in violation of an Environmental Law. Indicate the governmental unit, the date of the notice, and, if known, the Environmental Law: SITE NAME AND ADDRESS OF GOVERNMENTAL UNIT DATE OF NOTICE ENVIRONMENTAL LAW See Attached Rider None b. List the name and address of every site for which the debtor provided notice to a governmental unit of a release of Hazardous Material. Indicate the governmental unit to which the notice was sent and the date of the notice. SITE NAME AND ADDRESS OF GOVERNMENTAL UNIT DATE OF NOTICE ENVIRONMENTAL LAW See Attached Rider None c. List all judicial or administrative proceedings, including settlements or orders, under any Environmental Law with respect to which the debtor is or was a party. Indicate the name and address of the governmental unit that is or was a party to the proceeding, and the docket number. OF GOVERNMENTAL UNIT Village of Hebron, Ohio c/o Bird + Bull 2875 West Dublin Granville Rd. Columbus, OH DOCKET Appeal of Industrial Waterwater Discharge Permit No STATUS OR DISPOSITION Closed 3/ Nature, location and name of business None a. If the debtor is an individual, list the names, addresses, taxpayer-identification numbers, nature of the businesses, and beginning and ending dates of all businesses in which the debtor was an officer, director, partner, or managing executive of a corporation, partner in a partnership, sole proprietor, or was self-employed in a trade, profession, or other activity either full- or part-time within six years immediately preceding the commencement of this case, or in which the debtor owned 5 percent or more of the voting or equity securities within six years immediately preceding the commencement of this case. If the debtor is a partnership, list the names, addresses, taxpayer-identification numbers, nature of the businesses, and beginning and ending dates of all businesses in which the debtor was a partner or owned 5 percent or more of the voting or equity securities, within six years immediately preceding the commencement of this case. If the debtor is a corporation, list the names, addresses, taxpayer-identification numbers, nature of the businesses, and beginning and ending dates of all businesses in which the debtor was a partner or owned 5 percent or more of the voting or equity securities within six years immediately preceding the commencement of this case.

15 In re: Harry and David Case No NAME Bear Creek Direct Marketing, Inc. LAST FOUR DIGITS OF SOCIAL-SECURITY OR OTHER INDIVIDUAL TAXPAYER-I.D. NO. (ITIN)/ COMPLETE EIN ADDRESS South Pacific Highway Medford, OR NATURE OF BUSINESS BEGINNING AND ENDING DATES Holding Company 12/29/ /30/2007 Bear Creek Orchards, Inc. Bear Creek Stores, Inc. Harry & David Operations, Inc. Jackson & Perkins Company Jackson & Perkins Operations, Inc. Jackson & Perkins Wholesale, Inc. Wolferman's, LLC South Pacific Highway Medford, OR South Pacific Highway Medford, OR South Pacific Highway Medford, OR South Pacific Highway Medford, OR South Pacific Highway Medford, OR South Pacific Highway Medford, OR South Pacific Highway Medford, OR Agricultural Operations 12/29/ Ongoing Retail marketer of gourmet foods and gifts Operations support for Harry and David Direct marketer of plants and gifts 10/20/ /30/ /30/ Ongoing 7/14/ Sold 4/10/2007 Agricultural operations 11/30/ /30/2007 Wholesale marketer of roses and other nursery goods 11/30/ Sold 4/10/2007 Holding Company 1/2/2008-1/15/2008 None b. Identify any business listed in response to subdivision a., above, that is "single asset real estate" as defined in 11 U.S.C NAME ADDRESS

16 In re: Harry and David Case No The following questions are to be completed by every debtor that is a corporation or partnership and by any individual debtor who is or has been, within six years immediately preceding the commencement of this case, any of the following: an officer, director, managing executive, or owner of more than 5 percent of the voting or equity securities of a corporation; a partner, other than a limited partner, of a partnership, a sole proprietor, or self-employed in a trade, profession, or other activity, either full- or part-time. (An individual or joint debtor should complete this portion of the statement only if the debtor is or has been in business, as defined above, within six years immediately preceding the commencement of this case. A debtor who has not been in business within those six years should go directly to the signature page.) 19. Books, records and financial statements None a. List all bookkeepers and accountants who within two years immediately preceding the filing of this bankruptcy case kept or supervised the keeping of books of account and records of the debtor. Colpitts, Bernie Controller 2500 S Pacific Hwy Medford, OR Dunlap, Edward F. Chief Financial Officer 2500 S Pacific Hwy Medford, OR O'Connell, Stephen Chief Financial Officer 2500 S Pacific Hwy Medford, OR DATES SERVICES RENDERED 11/27/2006-1/29/2011 8/10/ Present 7/1/2004-7/1/2009 None b. List all firms or individuals who within two years immediately preceding the filing of this bankruptcy case have audited the books of account and records, or prepared a financial statement of the debtor. NAME ADDRESS DATES SERVICES RENDERED Ernst & Young LLP PricewaterhouseCoopers LLP 1120 NW Couch Street Suite 425 Portland, OR Fifth Ave Suite 1900 Seattle, WA /1/ /6/ /6/ Present

17 In re: Harry and David Case No None c. List all firms or individuals who at the time of the commencement of this case were in possession of the books of account and records of the debtor. If any of the books of account and records are not available, explain. NAME Dunlap, Edward F. ADDRESS 2500 S Pacific Hwy Medford, OR None d. List all financial institutions, creditors and other parties, including mercantile and trade agencies, to whom a financial statement was issued by the debtor within two years immediately preceding the commencement of this case. DATE ISSUED 20. Inventories None a. List the dates of the last two inventories taken of your property, the name of the person who supervised the taking of each inventory, and the dollar amount and basis of each inventory. DATE OF INVENTORY INVENTORY SUPERVISOR DOLLAR AMOUNT OF INVENTORY (Specify cost, market or other basis) 2/22/2010-3/09/2010 RGIS Inventory and Supply Chain Solutions 1/24/2011-2/8/2011 RGIS Inventory and Supply Chain Solutions $11,421, $5,336, All inventory amounts are listed at cost basis. None b. List the name and address of the person having possession of the records of each of the inventories reported in a., above. DATE OF INVENTORY ES OF CUSTODIAN OF INVENTORY RECORDS 2/22/2010-3/09/2010 Nita Joseph 2500 South Pacific Highway Medford, OR /24/2011-2/8/2011 Nita Joseph 2500 South Pacific Highway Medford, OR 97501

18 In re: Harry and David Case No Current Partners, Officers, Directors and Shareholders None a. If the debtor is a partnership, list the nature and percentage of partnership interest of each member of the partnership. NATURE OF INTEREST PERCENTAGE OF INTEREST Not Applicable None b. If the debtor is a corporation, list all officers and directors of the corporation, and each stockholder who directly or indirectly owns, controls, or holds 5 percent or more of the voting or equity securities of the corporation. TITLE NATURE AND PERCENTAGE OF STOCK OWNERSHIP Charne, David 2500 South Pacific Highway Medford, OR Dunlap, Edward F 2500 South Pacific Highway Medford, OR Harry and David Holdings, Inc South Pacific Highway Medford, OR Heyer, Steven J South Pacific Highway Medford, OR Hong, Kay 2500 South Pacific Highway Medford, OR Jones, Ellis B Avenue of the Americas, 41st Floor New York, NY Kosturos, Paul 2500 South Pacific Highway Medford, OR Majoros Jr., George L Avenue of the Americas, 41st Floor New York, NY Montgomery, Robert 2500 South Pacific Highway Medford, OR Interim Treasurer Chief Financial Officer N/A N/A Shareholder 100% Director Chief Restructuring Officer and Interim CEO Director Assistant Restructuring Officer Director Assistant Restructuring Officer N/A N/A N/A N/A N/A N/A

19 In re: Harry and David Case No Former partners, officers, directors and shareholders None a. If the debtor is a partnership, list each member who withdrew from the partnership within one year immediately preceding the commencement of this case. NAME ADDRESS DATE OF WITHDRAWAL Not Applicable None b. If the debtor is a corporation, list all officers or directors whose relationship with the corporation terminated within one year immediately preceding the commencement of this case. TITLE DATE OF TERMINATION Bluth, Robert E S Pacific Hwy Medford, OR Heyer, Steven J S Pacific Hwy Medford, OR Corporate Secretary 06/30/2010 Chief Executive Officer 03/26/ Withdrawals from a partnership or distributions by a corporation None If the debtor is a partnership or corporation, list all withdrawals or distributions credited or given to an insider, including compensation in any form, bonuses, loans, stock redemptions, options exercised and any other perquisite during one year immediately preceding the commencement of this case. NAME & ADDRESS OF RECIPIENT, RELATIONSHIP TO DEBTOR DATE AND PURPOSE OF WITHDRAWAL AMOUNT OF MONEY OR DESCRIPTION AND VALUE OF PROPERTY See Answer to 3c 24. Tax Consolidation Group. None If the debtor is a corporation, list the name and federal taxpayer-identification number of the parent corporation of any consolidated group for tax purposes of which the debtor has been a member at any time within six years immediately preceding the commencement of the case. NAME OF PARENT CORPORATION TAXPAYER-IDENTIFICATION (EIN) Harry & David Holdings, Inc Yamanouchi Consumer, Inc

20 In re: Harry and David Case No Pension Funds. None If the debtor is not an individual, list the name and federal taxpayer-identification number of any pension fund to which the debtor, as an employer, has been responsible for contributing at any time within six years immediately preceding the commencement of the case. NAME OF PENSION FUND TAXPAYER-IDENTIFICATION (EIN) Harry and David Employees' Pension Plan Juan De La Cruz Farmworkers' Pension Plan * * * * * *

21 1 45 DEGREES LOGISTICS, INC PO BOX31 HEBRON, OH /05/2011 $4, /20/2011 $33, /28/2011 $1, /04/2011 $2, /10/2011 $5, /24/2011 $1, /03/2011 $2, /16/2011 $2, SUBTOTAL $55, A BETTER WEIGH SCALE LLC PO BOX76 GOLD HILL, OR /13/2011 $2, SUBTOTAL $2, A+EMBROIDERY 215 5TH AVE GOLD HILL, OR /24/2011 $5, /17/2011 $6, SUBTOTAL $12, AAA DAY & NIGHT EXPRESS, INC. PO BOX250 HINSDALE, IL /05/2011 $ /20/2011 $1, /04/2011 $ /07/2011 $ /03/2011 $ /10/2011 $ /16/2011 $15.00 SUBTOTAL $2, ABARAH, BRENDA 4700 YAMATO CT ORLANDO, FL /10/2011 $50.00 SUBTOTAL $ ABLECO FINANCE LLC 299 PARK AVENUE,, 23RD FL NEW YORK, NY WIRE /23/2011 $100, SUBTOTAL $100, Of 191

22 7 ACADEMY FIRE PROTECTION INC MASPETH AVE MASPETH, NY /31/2011 $2, SUBTOTAL $2, ACCOUNTREE LLC PO BOX20433 WEST PALM BEACH, FL /06/2011 $ SUBTOTAL $ ACHATZ HANDMADE PIE CO COMMERCE BLVD CHESTERFIELD, MI /12/2011 $230, /20/2011 $411, /28/2011 $58, SUBTOTAL $700, ACSI PO BOX17423 NASHVILLE, TN /29/2010 $ /12/2011 $ /27/2011 $ /10/2011 $ SUBTOTAL $ ACTION MESSENGER SERVICE INC PO BOX69763 LOS ANGELES, CA /05/2011 $ /20/2011 $ /28/2011 $ /04/2011 $ /17/2011 $ /24/2011 $ /03/2011 $ /10/2011 $16.40 SUBTOTAL $1, ADA VALLEY GOURMET FOODS 6210 E FULTON ADA, MI /13/2011 $185, /03/2011 $108, SUBTOTAL $294, Of 191

23 13 ADAMS DELI & CATERING 2901 DOCTORS PARK DRIVE MEDFORD, OR /13/2011 $ SUBTOTAL $ ADLER, DON 3903 NOSTRAND AVE BROOKLYN, NY /04/2011 $14.99 SUBTOTAL $ ADM CORN PROCESSING PO BOX92572 CHICAGO, IL /21/2011 $22, /27/2011 $12, WIRE /08/2011 $12, SUBTOTAL $48, ADP INC PO BOX500 CAROL STREAM, IL /05/2011 $38, SUBTOTAL $38, ADT SECURITY SERVICES INC PO BOX PITTSBURGH, PA WIRE /22/2011 $15, SUBTOTAL $15, ADVERTISING SPECIALTY INSTITUTE PO BOX8200 PHILADELPHIA, PA /24/2011 $4, SUBTOTAL $4, AETNA PO BOX PASADENA, CA /10/2011 $81, /10/2011 $72, SUBTOTAL $154, Of 191

24 20 AETNA PO BOX PASADENA, CA /21/2011 $42, /21/2011 $85, /10/2011 $40, /10/2011 $36, SUBTOTAL $205, AETNA-MIDDLETOWN PO BOX13504 NEWARK, NJ /21/2011 $2, /27/2011 $2, SUBTOTAL $4, AFCO 4501 COLLEGE BLVD, STE 320 LEAWOOD, KS /11/2011 $91, /24/2011 $91, /16/2011 $91, SUBTOTAL $274, AGNES POUKE HALPERN 2307 DERBY ST BERKELEY, CA /17/2011 $5, SUBTOTAL $5, AGUIRRE, JIL DEANANN GARDEN GROVE, CA /04/2011 $5.95 SUBTOTAL $ AKAMAI TECHNOLOGIES, INC PO BOX NEW YORK, NY WIRE /16/2011 $17, WIRE /22/2011 $125, SUBTOTAL $142, AL'S SHARPENING SERVICE INC PO BOX29 PHOENIX, OR /13/2011 $92.50 SUBTOTAL $ Of 191