<PAGE>

                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549

                                   FORM 10-Q

             [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934

                 For the quarterly period ended March 31, 2000

                                      OR

             [_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934

                       Commission file number 000-24713


                              EBS Pension, L.L.C.
            (Exact name of registrant as specified in its charter)

                Delaware                              42-1466520
    (State or other jurisdiction of                (I.R.S. Employer
     incorporation or organization)             Identification Number)

     Sixth and Marquette; N9303-120
   Minneapolis, Minnesota  55479-0069
(Address of principal executive offices)

                                (612) 667-4803
             (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [_]

At May 1, 2000 there were 10,000,000 Class A Membership Units outstanding and no
Class B Membership Units outstanding.
<PAGE>

                         PART I. FINANCIAL INFORMATION

Item 1. Financial Statements


                              EBS PENSION, L.L.C.
                            Statement of Operations
              For the Three Months Ended March 31, 2000 and 1999
              ---------------------------------------------------

<TABLE>
<CAPTION>
                                For the three months
                                   ended March 31,
                                2000           1999
                             (unaudited)    (unaudited)
<S>                           <C>            <C>
Income:
   Interest                    $23,662        $20,198
                               -------        -------

    Total income               $23,662        $20,198
                               =======        =======

Expenses:
   Manager fees                $12,466        $12,603
   Transfer agent fees           9,000          7,000
   Legal fees                    7,721          2,000
   Accounting fees               3,000          2,000
   Other                           600          1,713
                               -------        -------

    Total expenses              32,787         25,316
                               -------        -------

Net loss                       $(9,125)       $(5,118)
                               =======        =======
</TABLE>

  The accompanying notes are an integral part of these financial statements.

                                       2

<PAGE>

<TABLE>
<CAPTION>
                               EBS PENSION, L.L.C.
                                  Balance Sheet
                       March 31, 2000 and December 31, 1999
                       ------------------------------------
<S>                                                 <C>             <C>
                                                     March 31,
                                                       2000         December 31,
                                                    (unaudited)        1999
Assets
Cash and cash equivalents
   Available for general operations                  $  149,769     $  144,200
   Returned member distributions                        225,018        225,018
   Available for anticipated cost of legal
   indemnification of officers                        1,500,000      1,500,000
Interest receivable                                       8,120          7,436
                                                     ----------     ----------
     Total assets                                    $1,882,907     $1,876,654
                                                     ==========     ==========

Liabilities
Distribution payable                                 $  225,018     $  225,018
Accrued expenses                                        125,144        109,766
                                                     ----------     ----------
     Total liabilities                               $  350,162     $  334,784
                                                     ==========     ==========


Members' equity:
   Membership Units (Class A - 10,000,000
   authorized, issued and outstanding at March 31,
   2000 and December 31, 1999, Class B - 0
   authorized, issued and outstanding at March 31,
   2000 and December 31, 1999)



   Paid-in capital                                    1,667,492      1,667,492
   Retained deficit                                    (134,747)      (125,622)
                                                     ----------     ----------

     Total members' equity                            1,532,745      1,541,870
                                                     ----------     ----------

     Total liabilities and members' equity           $1,882,907     $1,876,654
                                                     ==========     ==========
</TABLE>
  The accompanying notes are an integral part of these financial statements.

                                       3

<PAGE>

                              EBS PENSION, L.L.C.
                    Statement of Changes in Members' Equity
          For the Periods Ended March 31, 2000 and December 31, 1999
          ----------------------------------------------------------


<TABLE>
<CAPTION>
                                 Class A          Class B
                                Membership      Membership        Paid in        Retained
                                  Units            Units          Capital         Deficit         Total
<S>                             <C>             <C>              <C>             <C>            <C>
Balance, January 1, 1999        10,000,000            -          $1,667,492      $  13,514      $1,681,006

Current year loss                    -                -               -           (139,136)       (139,136)
                                ----------      -----------      ----------      ---------      ----------

Balance, December 31, 1999      10,000,000            -           1,667,492       (125,622)      1,541,870

Current period loss
 (unaudited)                         -                -               -             (9,125)         (9,125)
                                ----------      -----------      ----------      ---------      ----------
Balance, March 31, 2000
 (unaudited)                    10,000,000            -          $1,667,492      $(134,747)     $1,532,745
                                ==========      ===========      ==========      =========      ==========
</TABLE>



  The accompanying notes are an integral part of these financial statements.

                                       4
<PAGE>

                              EBS PENSION, L.L.C.
                            Statement of Cash Flows
              For the Three Months Ended March 31, 2000 and 1999
              --------------------------------------------------


<TABLE>
<CAPTION>
                                                               For the three months ended
                                                                       March 31,
                                                                 2000             1999
                                                              (unaudited)      (unaudited)
<S>                                                           <C>              <C>
Cash flows from operating activities:
   Net loss                                                   $   (9,125)      $   (5,118)
   Reconciliation of net loss to cash flows provided
   by operating activities:
   (Increase) decrease in interest receivable                       (684)           7,916
   Increase (decrease) in liabilities                             15,378           (3,313)
                                                              ----------       ----------
      Cash flows provided by/(used in) operating
      activities                                                   5,569             (515)
                                                              ----------       ----------

Net increase (decrease) in cash and cash equivalents               5,569             (515)

Cash and cash equivalents at beginning of period               1,869,218        1,786,927
                                                              ----------       ----------
Cash and cash equivalents at end of period                    $1,874,787       $1,786,412
                                                              ==========       ==========
</TABLE>




  The accompanying notes are an integral part of these financial statements.

                                       5
<PAGE>
EBS PENSION, L.L.C.
Notes to Financial Statements
March 31, 2000 and December 31, 1999
--------------------------------------------------------------------------------

1. Description of business

   EBS Pension, L.L.C.. (the "Company") is governed by a Members Agreement,
   dated as of September 25, 1997 (the "Members Agreement").  Pursuant to the
   Members Agreement, the Company is organized for the exclusive purposes of (a)
   receiving and administering the cash proceeds (the "Pension Plan Proceeds")
   to be received by Edison Brothers Stores, Inc. ("Edison") and its affiliated
   debtors in possession (collectively with Edison, the "Debtors") as a result
   of the termination of the Edison Brothers Stores, Inc. Pension Plan (the
   "Pension Plan"), net of (i) the Pension Plan assets transferred to qualified
   replacement pension plans, (ii) all costs, fees and expenses relating to
   termination of the Pension Plan and establishment of replacement plans, and
   (iii) all applicable taxes incurred or for which a reserve is established in
   connection with termination of the Pension Plan, and (b) distributing such
   assets to holders of Class A Membership Units (the "Members") in accordance
   with the Members Agreement.

2. Summary of significant accounting policies

   This summary of significant accounting policies is presented to assist in
   evaluating the Company's financial statements included in this report. These
   principles conform to generally accepted accounting principles. The
   preparation of financial statements in conformity with generally accepted
   accounting principles requires that management make estimates and assumptions
   that impact the reported amounts of assets and liabilities as of the date of
   the financial statements and the reported amounts of revenues and expenses
   during the reporting period. Actual results could differ from those
   estimates. Adjustments are of a normal recurring nature.

   Basis of presentation
   These financial statements include the accounts of the Company for the
   periods from January 1, 1999 through December 31, 1999, January 1, 1999
   through March 31, 1999 (unaudited) and January 1, 2000 through March 31, 2000
   (unaudited).

   Cash and cash equivalents
   Cash consists of amounts held in an account in the Company's name at a
   highly-rated financial institution, along with U.S. Treasury Securities
   purchased and held in the Company's name.

   Accrued expenses
   Accrued expenses include amounts for unpaid legal, tax, accounting, manager
   and transfer agent fees.  Amounts are payable within one year.

   Interest
   Interest income is determined on the accrual basis.  Interest receivable is
   due to be received within one year.

   Expenses
   All expenses of the Company are recorded on the accrual basis of accounting.

   Income taxes
   The Company is not subject to taxes. Instead, the Members report their
   distributive share of the Company's profits and losses on their respective
   income tax returns.

3. Distribution Payable

   In August 1999, $225,018 of proceeds distributed to Members in February 1998
   were returned as the checks were not presented for payment. The funds
   continue to be held by the Company for the respective Members to claim. Any
   unclaimed funds will eventually escheat to the appropriate state(s) after the
   applicable statutory period for unclaimed property has run.

                                       6
<PAGE>
EBS PENSION, L.L.C.
Notes to Financial Statements
March 31, 2000 and December 31, 1999
--------------------------------------------------------------------------------

4. Members' equity

   On September 25, 1997, Edison transferred the right to receive the net cash
   proceeds from the termination of the Pension Plan in exchange for 10,000,000
   Class B Membership Units of the Company, which represented all of the
   outstanding Membership Units of the Company. The Net Pension Plan Proceeds
   (as defined in the Plan) amounted to $43.9 million at December 31, 1997 and
   were due from Edison at that date. Pursuant to the Plan, an additional amount
   of $5.7 million (the "Pension Plan Tax Reserve") is being held by Edison to
   satisfy certain fees and tax liabilities of Edison. The Plan of
   Reorganization further provided that upon receipt of a private letter ruling
   (the "Tax Ruling") from the Internal Revenue Service (the "IRS") indicating
   that no tax liability existed necessitating release of funds from the Pension
   Plan Tax Reserve, that Edison should remit such funds to the Company. On
   September 28, 1998, the IRS issued the Tax Ruling. To date, however, Edison
   has not released the funds held in the Pension Plan Tax Reserve to the
   Company. Some portion of the Pension Plan Tax Reserve may ultimately be
   distributed by Edison to the Company. The amount of such distribution (if
   any), however, cannot be determined at this time. See Note 6 hereof for
   further discussion of the Pension Plan Tax Reserve.

   On December 12, 1997, in accordance with the Members Agreement and the Plan
   of Reorganization, Edison exchanged 9,058,041 Class B Membership Units for
   9,058,041 Class A Membership Units of the Company and simultaneously
   distributed such Class A Membership Units to holders of Allowed General
   Unsecured Claims.

   During 1998, Edison paid $43.9 million to the Company in satisfaction of the
   Company's receivable recorded at December 31, 1997. Of this amount, $42.3
   million was distributed to Class A members during 1998, $1.5 million is
   retained for the anticipated cost of legal indemnification of the officers of
   Edison, and the remaining amount is retained for other anticipated expenses
   expected to be incurred by the Company.

   During 1998, Edison exchanged 942,238 Class B Membership Units for 942,238
   Class A Membership Units of the Company and simultaneously distributed such
   units to holders of Allowed General Unsecured Claims.

   Also during 1998, certain Class A Membership Unit holders returned 279 Class
   A Membership Units to Edison as such Membership Units had been distributed in
   error. The distribution proceeds relating to these returned Membership Units
   are included in paid in capital and were available for future distributions
   to holders of Class A Membership Units. At December 31, 1998, Edison has no
   Class B Membership Units.

   In August 1999, $225,018 of proceeds distributed to members in February 1998
   were returned as the checks were not presented for payment. See Note 3 above
   for further discussion.

5. Related parties

   The Manager of the Company is the same financial institution that holds the
   Company's cash and cash equivalents.

6. Commitments and contingencies

   On March 9, 1999, Edison filed for protection under Chapter 11 of the
   Bankruptcy Code (the "Petition Date"). Prior to the Petition Date, Edison had
   not yet released the Pension Plan Tax Reserve to the Company. Therefore,
   Edison's Chapter 11 filing may have a materially adverse impact on the
   collectibility of the Pension Plan Tax Reserve discussed in the first
   paragraph of Note 4 above.

   On April 23, 1999, the Company filed a complaint (the "Complaint") against
   Edison seeking a declaration that Edison is holding the Pension Plan Tax
   Reserve in constructive trust for the Company and it is not part of Edison's
   bankruptcy. On June 16, 1999, the Company filed a motion for summary judgment
   with respect to the Complaint. Edison filed a cross motion for summary
   judgment on July 30, 1999. A hearing (the "Hearing") on the Company's summary
   judgment motion was held on December 7, 1999 in the United States Bankruptcy
   Court for the District of Delaware (the "Bankruptcy Court"). At the Hearing,
   the Bankruptcy judge denied both summary judgment

                                       7
<PAGE>
EBS PENSION, L.L.C.
Notes to Financial Statements
March 31, 2000 and December 31, 1999
--------------------------------------------------------------------------------

   motions citing the existence of genuine issues of material fact, but, in so
   holding, determined that Edison was holding the Pension Plan Tax Reserve in
   constructive trust for the Company.

7. Subsequent Events (unaudited)

   Cash on Deposit as of April 25, 2000
   As of April 25, 2000, the Company had approximately $1.9 million in cash and
   cash equivalents, including the unclaimed funds discussed above in Note 3.
   This sum represents the Pension Plan Funding amount as of this date and
   accrued interest through March 31, 2000, less disbursements through April 25,
   2000. This cash, plus any portion of Pension Plan Tax Reserve that may
   ultimately be received by the Company, will be used for general operations
   and for the anticipated cost of legal indemnification of the officers of
   Edison as contemplated by the Members' Agreement and collecting the Pension
   Plan Tax Reserve from Edison. Any amounts not used for these purposes will be
   made available for future distributions to Class A Membership Unit holders.

                                       8
<PAGE>

Item 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATIONS

     The following is a discussion and analysis of the financial condition and
results of operations of the Company as of and for the years ended December 31,
1999 and 1998 and as of and for the periods ended December 31, 1997, January 1,
2000 through March 31, 2000 (unaudited) and January 1, 1999 through March 31,
1999 (unaudited), and of certain factors that may affect the Company's
prospective financial condition and results of operations. The following should
be read in conjunction with the Company's Financial Statements and Notes thereto
included elsewhere herein and included in the Company's Annual Report and Form
10-K for the year ended December 31, 1999. This discussion contains certain
forward-looking statements that involve risks and uncertainties. The Company's
actual results could differ materially from the results expressed in, or implied
by, such statements.

Results of Operations/Overview

     The Company, which was formed pursuant to the Amended Joint Plan of
Reorganization Under Chapter 11 of the U.S. Bankruptcy Code filed by the Debtors
(the "Plan") and the Members Agreement, is a limited purpose entity which was
organized for the exclusive purposes of (a) receiving and administering the
Company Assets, and (b) distributing the Company Assets to holders of the
Company's Class A Membership Units pursuant to the terms of the Members
Agreement.

     On January 23, 1998, the Company received from Edison, Pension Plan
Proceeds totaling approximately $44.0 million. The Company recognizes income
from interest earned on its funds. The Company invests such funds in a money
market fund investing solely in direct obligations of the United States
Government. The Members Agreement permits all funds received by the Company to
be temporarily invested in United States treasury bills and notes with
maturities of 12 months or less, institutional money market funds and demand or
time deposits and certificates of deposit with U.S. federal or state commercial
banks having primary capital of not less than $500 million. During the year
ended December 31, 1999 and 1998, the Company recognized $80,314 and $321,488 of
interest income, respectively. During the period ended December 31, 1997, the
Company did not recognize any interest income because it did not receive the
Pension Plan Proceeds until January 1998. During the three month periods ended
March 31, 2000 and 1999, the Company recognized $23,662 and $20,198 of interest
income, respectively. The amount of interest income recognized by the Company in
future periods will be dependent on, among other things, (1) fluctuations in
interest rates, (2) the amounts and timing of any amounts received in the future
from the Pension Plan Tax Reserve, (3) the amount and timing of distributions,
if any, to holders of Class A Membership Units, and (4) the amount and timing of
the Company's expenses.

     The Company's general and administrative expenses consist primarily of fees
payable to the Manager, the Transfer Agent, and the Company's lawyers,
accountants, and auditors. The Company had expenses of $219,450, $256,064 and
$51,910 for the years ended December 31, 1999 and 1998 and for the period ended
December 31, 1997, respectively. During the three month periods ended March 31,
2000 and 1999, the Company had expenses of $32,787 and $25,316, respectively.
These expenses are expected to fluctuate in future periods primarily based on
the volume of any future disbursements on account of Class A Membership Units
and any actions the Company takes in attempting to collect the Pension Plan Tax
Reserve from Edison.

     The Company and EBS Litigation, L.L.C. (another limited liability company
formed pursuant to the Plan) have agreed to indemnify the Debtors and their
present or former officers, directors and employees from and against any losses,
claims, damages or liabilities by reason of any actions arising from or relating
to the Company and any actions taken or proceeding commenced by EBS Litigation,
L.L.C. (other than with respect to any Unresolved Avoidance Claims (as defined
in the Plan) that EBS Litigation, L.L.C. may have against such persons other
than in their capacities as officers, directors or employees of the Debtors.
Pursuant to the Plan, the Company established the Indemnification Reserve ($1.5
million) from the Pension Plan Proceeds for the benefit of these indemnified
persons, to pay their costs and expenses incurred in defending the LLC Related
Claims (as defined in the Plan). Payment of such cost and expenses must first be
sought from any applicable officers' and directors' insurance policy and then
from the Indemnification Reserve. The Company's indemnification liability is
limited to the amount of the Indemnification Reserve, i.e. an aggregate of $1.5
million. Although to date there has not been any indemnification claim, there
can be no assurance such a claim will not be made in the future. All liabilities
of the Company, including the foregoing indemnification obligations, will be
satisfied from the Company Assets.

                                       9
<PAGE>

     At December 31, 1999, the Company had cash and cash equivalents of
approximately $1.9 million. At December 31, 1998, the Company had cash and cash
equivalents of approximately $1.8 million, after approximately $42.3 million was
distributed to holders of Class A Membership Units in 1998. At December 31,
1997, the Company had no cash or cash equivalents. At March 31, 2000, the
Company had cash and cash equivalents of approximately $1.9 million, including
the unclaimed funds discussed in Note 3 to the financial statements. When
determining the amount and timing of distributions, the Manager considered,
among other things, (1) the terms of the Members Agreement governing
distributions, and (2) the anticipated amount of necessary reserves and future
administrative expenses. The amount and timing of any future distributions of
Pension Plan Proceeds will be determined by the Manager in accordance with the
terms of the Members Agreement. There can be no assurance as to the amount (if
any) of any further distributions that will be made.

     The Company is classified as a partnership for federal income tax purposes
and, therefore, does not pay any taxes. Instead, the Members pay taxes on their
proportionate share of the Company's income.

Quarterly Comparison

Three Months ended March 31, 2000 Compared to Three Months Ended March 31, 1999

     Total income for the three months ended March 31, 2000 was $23,662 compared
to $20,198 for the three months ended March 31, 1999. This increase is due to
slightly higher cash balances on hand for the respective periods.

     Total expenses increased $7,471 due primarily to an increase in legal fees
in the attempt to resolve matters surrounding the Pension Plan Tax Reserve.

                                      10
<PAGE>

                          PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings.

     Other than matters discussed in Part I, Item 2 of this Quarterly Report,
the Company is not involved in any legal proceedings.

Item 6.  Exhibits and Reports on Form 8-K.

   (A)    Exhibits       Description
          --------       -----------

            2.1*    Amended Joint Plan of Reorganization of Edison Brothers
                    Stores, Inc.

            3.1*    EBS Pension, L.L.C. Certificate of Formation

            3.2*    EBS Pension, L.L.C. Membership Agreement

            27.1    Financial Data Schedule


*  Incorporated by reference to the same numbered exhibit filed with the
   Registrant's Registration Statement on Form 10 originally filed with the SEC
   on July 29, 1998 (SEC File No. 000-24713)


   (B)    Reports on Form 8-K

     None.

                                      11
<PAGE>

                                   Signatures
                                   ----------

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                    EBS PENSION, L.L.C.

                                    By: NORWEST BANK MINNESOTA, N.A., in its
                                        capacity as Manager of EBS Pension,
                                        L.L.C.



                                    By: /s/ Lon P. LeClair
                                        ------------------------------
Date:  May 15, 2000                     Lon P. LeClair
                                        Vice President

                                      12