UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF NEW YORK



In re

        LENOX SALES INC., ET AL

        Case No.

        08-14679 (ALG) (Jointly Administered)Debtor

        Reporting Period:

        1/04/09 - 1/31/09Federal Tax I.D. #

        41-1893270




CORPORATE MONTHLY OPERATING REPORT



File with the Court and submit a copy to the United States Trustee within 20 days after the end of the month and submit a copy of the report to any official committee appointed in the case.

(Reports for Rochester and Buffalo Divisions of Western District of New York are due 15 days after the end of the month, as are the reports for Southern District of New York.)



REQUIRED DOCUMENTS

        Form No.

        Document Attached

        Explanation AttachedSchedule of Cash Receipts and Disbursements

        MOR-1

        YBank Reconciliation (or copies of debtors bank reconciliations)

        MOR-1 (CONT)

        YCopies of bank statements

        

        N

        1Cash disbursements journals

        

        N

        1Statement of Operations

        MOR-2

        YBalance Sheet

        MOR-3

        YStatus of Post-petition Taxes

        MOR-4

        YCopies of IRS Form 6123 or payment receipt

        

        N

        1Copies of tax returns filed during reporting period

        

        N

        1Summary of Unpaid Post-petition Debts

        MOR-4

        YListing of Aged Accounts Payable

        

        YAccounts Receivable Reconciliation and Aging

        MOR-5

        YTaxes Reconciliation and Aging

        MOR-5

        YPayments to Insiders and Professional

        MOR-6

        YPost-Petition Status of Secured Notes, Leases Payable

        MOR-6

        YDebtor Questionnaire

        MOR-7

        Y




I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.



Signature of Debtor

        

        DateSignature of Authorized Individual*

        

        DateFred Spivak, Chief Financial OfficerPrinted Name of Authorized Individual




*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.



1

        Due to their voluminous nature, these documents are not attached but are available from the Debtor upon request




FORM MOR 2/2008 PAGE 1 OF 1


---

GENERAL NOTES TO JANUARY 2009

MONTHLY OPERATING REPORT



General:



This report includes activity for all Debtors in these jointly administered cases.



Notes to MOR-1, 2 and 3:



The financial statements and supplemental information contained herein are preliminary, unaudited, and may not comply with generally accepted accounting principles in the United States of America (U.S. GAAP) in all material respects. In addition, the financial statements and supplemental information contained herein represent the condensed combined information for all Debtors.



The unaudited combined financial statements have been derived from the books and records of the Debtors. This information, however, has not been subject to certain procedures that would typically be applied to financial information in accordance with U.S. GAAP, and upon application of such procedures (such as tests for asset impairment), the Debtors believe that the financial information could be subject to changes, and these changes could be material. The information furnished in this report includes primarily normal recurring adjustments but does not include all adjustments that would typically be made for financial statements in accordance with U.S. GAAP.



The results of operations contained herein are not necessarily indicative of results which may be expected for any other period or for the full year and may not necessarily reflect the consolidated results of operations and financial position of the Debtors in the future.



The Debtors in these cases include:

Lenox Sales, Inc.1Lenox Group Inc.FL 56 Intermediate Corp.1D 56, Inc.1Lenox, Incorporated1Lenox Retail, Inc.1Lenox Worldwide LLC1

        08-1467908-1468008-1468108-1468208-1468308-1468408-14685

        (REG)(REG)(REG)(REG)(REG)(REG)(REG)




1  These entities do not make any disbursements



---

In re

        LENOX SALES INC., ET AL

        Case No.

        08-14679 (ALG) (Jointly Administered)Debtor

        Reporting Period:

        1/04/09 - 1/31/09




SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS



LENOX GROUP INC. AND SUBSIDIARIES

PRELIMINARY CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

(In thousands)



4 WEEKS ENDEDJANUARY 31, 2009CASH FLOWS FROM OPERATING ACTIVITIESNet loss

        

        $

        (5,738

        )Adjustments to reconcile net loss to net cash provided by operating activities:Depreciation

        

        

        634Asset impairment

        

        

        Amortization of other intangibles

        

        

        144Amortization of deferred financing fees

        

        

        353Equity compensation

        

        

        (11

        )Changes in assets and liabilities:Accounts receivable

        

        

        6,991Inventories

        

        

        558Other assets

        

        

        (113

        )Accounts payable

        

        

        (2,119

        )Accrued compensation and benefits payable

        

        

        (73

        )Income taxes payable/receivable

        

        

        16Pension and post-retirement obligations

        

        

        19Other liabilities

        

        

        (1,269

        )Net cash provided by operating activities

        

        

        (608

        )CASH FLOWS FROM INVESTING ACTIVITIESPurchases of property & equipment

        

        

        (54

        )Proceeds from the sale of assets

        

        

        Net cash provided by investing activities

        

        

        (54

        )CASH FLOWS FROM FINANCING ACTIVITIESBorrowings/(payments) on DIP revolving financing facility

        

        

        (3,280

        )Net cash provided by (used In) financing activities

        

        

        (3,280

        )NET INCREASE IN CASH AND EQUIVALENTS

        

        

        (3,942

        )CASH AND EQUIVALENTS AT BEGINNING OF PERIOD

        

        

        4,269CASH AND EQUIVALENTS AT END OF PERIOD

        

        $

        327




THE FOLLOWING SECTION MUST BE COMPLETED

DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES



TOTAL DISBURSEMENTS

        

        $

        26,528,000LESS:  TRANSFERS TO OTHER DEBTOR IN POSSESSION ACCOUNTS

        

        $

        PLUS:  ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES

        

        $

        TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES

        

        $

        26,528,000




FORM MOR-1 2/2008 PAGE 1 OF 1


---

In re

        LENOX SALES INC., ET AL

        Case No.

        08-14679 (ALG) (Jointly Administered)Debtor

        Reporting Period:

        1/04/09 - 1/31/09




BANK RECONCILIATIONS



Continuation Sheet for MOR-1

A bank reconciliation must be included for each bank account.  The debtor's bank reconciliation may be substituted for this page.

(Bank account numbers may be redacted to last four numbers.)



Reconciled as ofG/L Acct.#

        Account  Description

        Bank Account #

        Bank Name

        Bank Balance

        G/L Balance

        As of Date

        Date220.0127.CNBC0613

        General-Canada

        5500613

        Canadian Bank of Commerce (CAD$)

        14,193.85

        14,193.85

        1/31/2009

        2/11/2009617.0122.BOAM1015

        Shanghai Operating Account

        10841015

        Bank of America, Shanghai

        14,838.36

        1,693.85

        1/31/2009

        2/17/2009271010.0127.SVCB8628

        Store Deposits

        27318628

        Sevier County Bank

        2,149.29

        3,791.98

        1/31/2009

        2/12/20091422.111060

        Atlanta Showroom Checking

        129577849

        Wachovia Bank

        31,905.94

        31,905.94

        1/31/2009

        2/11/2009276014.0127.QUEE6601

        Store Deposits

        465196601

        Queenstown Bank of Maryland

        4,780.17

        (2,456.78)

        1/31/2009

        2/12/20095600.111050

        Letter of Credit Funding Acct.

        640126702

        Bank One, NA

        39,331.58

        39,331.58

        1/31/2009

        2/17/20091431.111060

        Columbus Showroom Checking

        658848964

        National City Corporation

        3,338.50

        3,338.50

        1/31/2009

        2/20/2009271026.0127.NCPA5237

        Store Deposits

        658925237

        National City Bank of Pennsylvania

        3,607.80

        4,926.14

        1/31/2009

        2/12/20091430.111060

        Dallas Showroom Checking

        950003018

        Frost National Bank

        21,136.80

        21,136.80

        1/31/2009

        2/11/2009271011.0127.NATC6751

        Store Deposits

        967336751

        National City Bank of the Midwest

        1,842.90

        2,665.82

        1/31/2009

        2/12/2009278607.0127.NATC8886

        Store Deposits- Hoopla-Novi

        982178886

        National City Bank

        1,212.95

        1,262.95

        1/31/2009

        2/12/2009242.0127.MTTC5105

        Change Fund

        2660005105

        Manufacturers and Traders Trust Company

        4,559.67

        5,477.71

        1/31/2009

        2/11/2009271062.0127.NFBK1517

        Store Deposits

        3724111517

        Capital One Bank

        1,098.56

        2,177.80

        1/31/2009

        2/12/2009271037.0127.BKNO5531

        Store Deposits

        3980515531

        TD Banknorth

        3,450.57

        4,756.65

        1/31/2009

        2/12/20091423.111060

        Chicago Showroom Checking

        7518739920

        Fifth Third Bank

        28,215.96

        28,215.96

        1/31/2009

        2/11/2009271012.0127.NEGA2165

        Store Deposits

        8000032165

        Northeast Georgia Bank

        2,952.45

        3,500.76

        1/31/2009

        2/12/2009275601.0127.USBK1348

        Retail - Mall of America (ZBA)

        104756211348

        US Bank

        

        38.87

        1/31/2009

        2/12/20091421.111060

        Minneapolis Showroom Checking

        104756211355

        US Bank

        101.51

        101.51

        1/31/2009

        2/16/20095600.111005

        CC Processing

        104756690137

        US Bank

        

        

        1/31/2009

        2/10/2009275603.0127.USBK7418

        Retail - Disneyland (ZBA)

        104756807418

        US Bank

        

        (0.03)

        1/31/2009

        2/12/2009275606.0127.USBK6497

        Retail - San Francisco (ZBA)

        104774436497

        US Bank

        

        

        1/31/2009

        2/12/20095600.111020

        Controlled Disb. - (ZBA)

        152118013977

        US Bank

        133,875.48

        (307,485.94)

        1/31/2009

        2/19/20095600.111010

        Concentration Account

        160233250275

        US Bank

        159,948.59

        161,004.50

        1/31/2009

        2/18/20095600.111040

        ACH

        170225138859

        US Bank

        5,099.33

        60,725.27

        1/31/2009

        2/18/20095600.111014

        Credit Card Collections (ZBA)

        170225142810

        US Bank

        

        

        1/31/2009

        2/10/20095600.111015

        Current Account

        800020405914

        The Bank of Nova Scotia (CAD$)

        85,874.05

        84,619.17

        1/31/2009

        2/10/2009276101.0127.SUNT2556

        Store Deposits

        1000049142556

        SunTrust Bank

        1,558.25

        10,239.00

        1/31/2009

        2/12/2009201.0121.WACH4180

        Payroll-First Union

        2000001684180

        Wachovia Bank

        

        (4,796.40)

        1/31/2009

        2/12/2009201.0121.WACH9648

        Disbursements-Master Acct

        2000028329648

        Wachovia Bank

        51,463.95

        51,463.95

        1/31/2009

        2/9/2009201.0121.WACH0213

        Third Party-ACH/Wires

        2000028330213

        Wachovia Bank

        

        

        1/31/2009

        2/9/2009201.0121.WACH7995

        General-First Union

        2000030727995

        Wachovia Bank

        

        

        1/31/2009

        2/4/2009220.0121.WACH8971

        General-First Union

        2000031708971

        Wachovia Bank

        

        

        1/31/2009

        2/10/2009270.0121.WACH5708

        General-First Union

        2000031735708

        Wachovia Bank

        

        (98,016.80)

        1/31/2009

        2/12/2009201.0905.EMPL

        EE Credit Card Cash

        2000032078244

        Wachovia Bank

        

        59,016.20

        1/31/2009

        2/12/2009201.0121.WACH9010

        Concentration Account

        2000032079010

        Wachovia Bank

        259,197.82

        259,197.82

        1/31/2009

        2/9/2009270.0121.WACH5837

        Global Store Deposits

        2000109855837

        Wachovia Bank

        

        35,332.62

        1/31/2009

        2/12/2009236.0121.WACHOV

        Employee Account

        2044740008287

        Wachovia Bank

        17,728.76

        17,728.76

        1/31/2009

        2/4/2009201.0121.WACH1542

        General-First Union

        2079950061542

        Wachovia Bank

        

        (1,630,970.41)

        1/31/2009

        2/20/2009282.0121.WACH1053

        ZBA-First Union

        2079950071053

        Wachovia Bank

        

        (195,067.72)

        1/31/2009

        2/11/2009201.0121.WACH0649

        Controlled Disb. - Payroll

        2079951060649

        Wachovia Bank

        

        (123,592.97)

        1/31/2009

        2/12/2009282.0121.WACH0766

        General-First Union

        2100010070766

        Wachovia Bank

        

        25,029.78

        1/31/2009

        2/11/2009220.2119

        A/P US Customs

        2100011972009

        Wachovia Bank

        

        

        1/31/2009

        2/10/2009201.0121.WACH5829

        Trust Acct for Taxes

        2000013085829

        Wachovia Bank

        1,200,000.00

        1,200,000.00

        1/31/2009

        2/5/2009201.0121.WACH9411

        Lock Box-First Union

        2100012019411

        Wachovia Bank

        

        (0.01)

        1/31/2009

        2/9/2009270.0121.WACH1069

        DTC-First Union

        2100012021069

        Wachovia Bank

        

        

        1/31/2009

        2/12/20091424.111060

        Los Angeles Showroom Checking.

        03762-05448

        Bank of America

        42,466.88

        42,466.88

        1/31/2009

        2/11/20091425.111060

        New York Showroom Checking

        630-0978736

        Bank of New York

        705.43

        705.43

        1/31/2009

        2/11/2009






FORM MOR-1 (CONT.) 2/2008 PAGE 1 OF 1


---

In re

        LENOX SALES INC., ET AL

        Case No.

        08-14679 (ALG) (Jointly Administered)Debtor

        Reporting Period:

        1/04/09 - 1/31/09




STATEMENT OF OPERATIONS(Income Statement)UNAUDITED



The Statement of Operations is prepared on an accrual basis.  The accrual basis of accounting recognizes revenue when it is realized and expenses when they are incurred, regardless of when cash is actually received or paid.



LENOX GROUP INC. AND SUBSIDIARIES

PRELIMINARY CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

(In thousands)



4 WEEKS ENDED JANUARY 31, 2009

        

        CUMULATIVE FILING TO JANUARY 31, 2009Net Sales

        

        $

        15,268

        

        $

        52,399Cost of Sales

        

        

        7,632

        

        

        27,641Gross Profit

        

        

        7,636

        

        

        24,758Selling general and administrative

        

        

        11,529

        

        

        28,205Operating Profit / (Loss)

        

        

        (3,893

        )

        

        (3,447

        )Interest expense

        

        

        1,312

        

        

        6,928Loss before reorganization items and income taxes

        

        

        (5,205

        )

        

        (10,375

        )Reorganization items

        

        

        589

        

        

        3,180Other (income) / expense, net

        

        

        (56

        )

        

        (355

        )Income tax expense

        

        

        

        

        

        15Net Loss

        

        $

        (5,738

        )

        $

        (13,215

        )






FORM MOR-2 2/2008 PAGE 1 OF 1


---

In re

        LENOX SALES INC., ET AL

        Case No.

        08-14679 (ALG) (Jointly Administered)Debtor

        Reporting Period:

        1/04/09 - 1/31/09




BALANCE SHEET



The Balance Sheet is to be completed on an accrual basis only.  Pre-petition liabilities must be classified separately from post-petition obligations.



LENOX GROUP INC. AND SUBSIDIARIES

PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)

(In thousands)



1/31/2009

        

        1/3/2009ASSETS:Current assets:Cash

        

        $

        327

        

        $

        4,269Accounts receivable, net

        

        

        20,056

        

        

        27,049Inventories

        

        

        68,130

        

        

        68,688Deferred taxes

        

        

        1,839

        

        

        1,839Income tax receivable

        

        

        564

        

        

        564Other current assets

        

        

        11,358

        

        

        12,126Total current assets

        

        

        102,274

        

        

        114,535

        

        

        Property & equipment, net

        

        

        32,742

        

        

        33,320Trademarks

        

        

        24,913

        

        

        24,913Other intangibles, net

        

        

        9,761

        

        

        9,999Other assets

        

        

        1,409

        

        

        1,277Total assets

        

        $

        171,099

        

        $

        184,044

        

        

        LIABILITIES AND STOCKHOLDERS EQUITY:Current liabilities:Borrowings on DIP

        

        $

        3,241

        

        $

        6,521Accounts payable

        

        

        11,067

        

        

        12,312Accrued compensation and benefits payable

        

        

        1,594

        

        

        1,677Accrued severance

        

        

        16

        

        

        197Other current liabilities

        

        

        3,120

        

        

        3,575Total current liabilities

        

        

        19,038

        

        

        24,283Other noncurrent liabilities

        

        

        3,033

        

        

        2,802Total liabilities not subject to compromise

        

        

        22,070

        

        

        27,085Liabilities subject to compromise

        

        

        143,214

        

        

        145,279Total Stockholders equity

        

        

        5,815

        

        

        11,680Total liabilities and stockholders' equity

        

        $

        171,099

        

        $

        184,044






FORM MOR-3 2/2008 PAGE 1 OF 1


---

In re

        LENOX SALES INC., ET AL

        Case No.

        08-14679 (ALG) (Jointly Administered)Debtor

        Reporting Period:

        1/04/09 - 1/31/09




STATUS OF POST-PETITION TAXES



The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero.

Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes.

Attach photocopies of any tax returns filed during the reporting period.



STATUS OF POST-PETITION TAXES

        

        

        

        

        

        

        MONTH:

        1/04/09 - 1/31/2009FEDERAL

        BEGINNINGTAXLIABILITY

        AMOUNTWITHHELD AND/OR ACCRUED

        AMOUNTPAID

        ENDINGTAXLIABILITY1.

        WITHHOLDING

        $

        71,952

        

        $

        658,224

        

        $

        (648,854

        )

        $

        81,3222.

        FICA - EMPLOYEE

        $

        60,928

        

        $

        435,521

        

        $

        (435,662

        )

        $

        60,7873.

        FICA - EMPLOYER

        $

        60,928

        

        $

        435,521

        

        $

        (435,662

        )

        $

        60,7874.

        UNEMPLOYMENT

        $

        6,353

        

        $

        42,944

        

        $

        (44,015

        )

        $

        5,2825.

        INCOME

        $

        

        

        $

        

        

        $

        

        

        $

        6.

        OTHER (ATTACH LIST)

        $

        

        

        $

        

        

        $

        

        

        $

        7.

        TOTAL FEDERAL TAXES

        $

        200,161

        

        $

        1,572,210

        

        $

        (1,564,193

        )

        $

        208,178STATE AND LOCAL & OTHER8.

        WITHHOLDING

        $

        36,304

        

        $

        184,710

        

        $

        (181,649

        )

        $

        39,3659.

        SALES

        $

        1,509,240

        

        $

        531,732

        

        $

        (1,465,759

        )

        $

        575,21310.

        EXCISE

        $

        

        

        $

        

        

        $

        

        

        $

        11.

        UNEMPLOYMENT

        $

        38,694

        

        $

        280,210

        

        $

        (284,002

        )

        $

        34,90212.

        REAL PROPERTY

        $

        

        

        $

        14,583

        

        $

        

        

        $

        14,58313.

        PERSONAL PROPERTY

        $

        3,422

        

        $

        34,980

        

        $

        (1,625

        )

        $

        36,77714.

        OTHER (SEE APPENDIX A)

        $

        776,054

        

        $

        16,000

        

        $

        (500

        )

        $

        791,55415.

        TOTAL STATE AND LOCAL & OTHER

        $

        2,363,714

        

        $

        1,062,215

        

        $

        (1,933,535

        )

        $

        1,492,39416.

        TOTAL TAXES

        $

        2,563,875

        

        $

        2,634,425

        

        $

        (3,497,728

        )

        $

        1,700,572






FORM MOR-4 2/2008 PAGE 1 OF 2


---

In re

        LENOX SALES INC., ET AL

        Case No.

        08-14679 (ALG) (Jointly Administered)Debtor

        Reporting Period:

        1/04/09 - 1/31/09




APPENDIX:A




AGING OF POST-PETITION TAXES - OTHER0-30 days

        31-60 days

        61-90 days

        91+ days

        TotalState & local income taxes

        $

        

        

        $

        (18,817

        )

        $

        

        

        $

        

        

        $

        (18,817

        )Franchise taxes

        $

        16,000

        

        $

        15,148

        

        $

        

        

        $

        

        

        $

        31,148FIN48 (1)

        $

        

        

        $

        779,223

        

        $

        

        

        $

        

        

        $

        779,223Other taxes payable

        $

        16,000

        

        $

        775,554

        

        $

        

        

        $

        

        

        $

        791,554STATUS OF POST-PETITION TAXES - OTHEROTHER TAXES

        

        BeginningTax Liability

        AmountWithheld andor/Accrued

        AmountPaid

        Ending TaxLiabilityState & local income taxes

        

        

        

        $

        (18,817

        )

        $

        

        

        $

        

        

        $

        (18,817

        )Franchise taxes

        

        

        

        $

        15,648

        

        $

        16,000

        

        $

        (500

        )

        $

        31,148FIN48  (1)

        

        

        

        $

        779,223

        

        $

        

        

        $

        

        

        $

        779,223Total other taxes

        

        

        

        $

        776,054

        

        $

        16,000

        

        $

        (500

        )

        $

        791,554




(1) Represents FIN 48 Liability and is considered post-petition taxes although accrued in prepetition.



FORM MOR-4 2/2008 PAGE 2 OF 2


---

In re

        LENOX SALES INC., ET AL

        Case No.

        08-14679 (ALG) (Jointly Administered)Debtor

        Reporting Period:

        1/04/09 - 1/31/09




ACCOUNTS RECEIVABLE RECONCILIATION AND AGING



MONTH ENDED

        MONTH ENDED

        MONTH ENDED

        MONTH ENDEDACCOUNTS RECEIVABLE AGING

        

        1/3/2009

        1/31/2009

        2/28/2009

        3/28/20091.

        Current

        

        

        

        $

        16,381,837

        

        $

        13,995,8862.

        0-30 Days

        

        

        

        $

        11,003,069

        

        $

        6,478,9743.

        31-60 Days

        

        

        

        $

        10,042,629

        

        $

        3,972,1744.

        61-90 Days

        

        

        

        $

        2,050,223

        

        $

        6,292,7475.

        91+ Days

        

        

        

        $

        3,733,296

        

        $

        4,323,6966.

        TOTAL ACCOUNTS RECEIVABLE

        

        

        

        $

        43,211,054

        

        $

        35,063,4777.

        ALLOWANCE FOR DOUBTFUL ACCOUNTS

        

        

        

        $

        (16,163,000

        )

        $

        (15,007,000

        )8.

        ACCOUNTS RECEIVABLE, NET

        

        

        

        $

        27,048,054

        

        $

        20,056,477AGING OF POST-PETITION TAXES

        

        

        MONTH ENDED:

        1/31/2009TAXES PAYABLE

        0-30DAYS

        31-60DAYS

        61-90DAYS

        91+DAYS

        TOTAL1.

        FEDERAL

        $

        208,178

        

        $

        

        

        $

        

        

        $

        

        

        $

        208,1782.

        STATE

        $

        605,999

        

        $

        43,481

        

        $

        

        

        $

        

        

        $

        649,4803.

        LOCAL

        $

        49,563

        

        $

        1,797

        

        $

        

        

        $

        

        

        $

        51,3604.

        OTHER (SEE APPENDIX A)

        $

        16,000

        

        $

        775,554

        

        $

        

        

        $

        

        

        $

        791,5545.

        TOTAL TAXES PAYABLE

        $

        879,740

        

        $

        820,832

        

        $

        

        

        $

        

        

        $

        1,700,572AGING OF POST-PETITION ACCOUNTS PAYABLEMONTH ENDED

        MONTH ENDED

        MONTH ENDED

        MONTH ENDEDPOST-PETITION AP AGING

        

        1/3/2009

        1/31/2009

        2/28/2009

        3/28/20091.

        Current

        

        

        

        $

        12,422,338

        

        $

        11,123,1292.

        0-30 Days

        

        

        

        $

        (18,344

        )

        $

        54,5193.

        31-60 Days

        

        

        

        $

        (92,304

        )

        $

        (18,344

        )4.

        61+ Days

        

        

        

        $

        

        

        $

        (92,304

        )5.

        TOTAL ACCOUNTS PAYABLE

        

        

        

        $

        12,311,690

        

        $

        11,067,000






FORM MOR-5 2/2008 PAGE 1 OF 1


---

In re

        LENOX SALES INC., ET AL

        Case No.

        08-14679 (ALG) (Jointly Administered)Debtor

        Reporting Period:

        1/04/09 - 1/31/09




PAYMENTS TO INSIDERS AND PROFESSIONALS



Of the total disbursements shown on the Cash Receipts and Disbursements Report (MOR-1) list the amount paid to insiders (as defined in Section 101(31) (A)-(F) of the U.S. Bankruptcy Code) and to professionals.  For payments to insiders, identify the type of compensation paid (e.g. Salary, Bonus, Commissions, Insurance, Housing Allowance, Travel, Car Allowance, Etc.).  Attach additional sheets if necessary.



INSIDERSNAME

        TYPE OFPAYMENT

        AMOUNT PAID

        TOTAL PAID TODATEFred Spivak

        Wages

        $

        29,221.13

        $

        77,269.13Fred Spivak

        T&E

        $

        2,223.28

        $

        4,616.02Louis Fantin

        Wages

        $

        21,176.00

        $

        52,946.00Branka Hannon

        Wages

        $

        17,081.08

        $

        42,708.08Robert Cohen

        Wages

        $

        16,935.18

        $

        42,343.18Robert Cohen

        T&E

        $

        

        $

        39.00TOTAL PAYMENTS TO INSIDERS

        $

        86,636.67

        $

        219,921.41




PROFESSIONALSNAME

        DATE OF COURTORDER AUTHORIZINGPAYMENT

        AMOUNT APPROVED

        AMOUNT PAID

        TOTAL PAID TO DATE

        TOTAL INCURRED & UNPAID*Berenson

        

        

        

        $

        332,882.96

        $

        486,234.51

        $

        502,979.85Carl Marks

        

        

        

        $

        373,386.18

        $

        403,095.50

        $

        202,233.07Garden City Group

        

        

        

        $

        155,129.76

        $

        197,621.25

        $

        97,860.16Paul Hastings

        

        

        

        $

        

        $

        279,200.00

        $

        Miller Buckfire

        

        

        

        $

        150,000.00

        $

        300,000.00

        $

        Cushman & Wakefield

        

        

        

        $

        5,750.00

        $

        5,750.00

        $

        6,000.00Cooley

        

        

        

        $

        

        $

        

        $

        184,969.61Schulte Roth

        

        

        

        $

        

        $

        

        $

        435,459.10Weil Gotschal

        

        

        

        $

        

        $

        

        $

        991,607.55TOTAL PAYMENTS TO PROFESSIONALS

        

        

        $

        1,017,148.90

        $

        1,671,901.26

        $

        2,421,109.34


* INCLUDE ALL FEES INCURRED, BOTH APPROVED AND UNAPPROVED



POST-PETITION STATUS OF SECURED NOTES, LEASES PAYABLEAND ADEQUATE PROTECTION PAYMENTSNAME OF CREDITOR

        SCHEDULEDMONTHLYPAYMENT DUE

        AMOUNT PAID DURING MONTH

        TOTAL UNPAID POST-PETITIONDIP Credit Facility (1)

        

        $

        3,280,256.00

        $

        3,241,131.00Leases (2)

        

        $

        96,566.56

        $

        329,814.38TOTAL PAYMENTS

        $

        3,376,822.56

        $

        3,570,945.38






(1)

        The amounts paid during the month under the DIP revolving credit facility represent amounts swept from the Debtors' bank accounts to repay amounts owed under the facility




(2)

        The leases line item is made up of a significant number
 of landlords and lessors. As such, details are not attached but are available from the Debtors upon request. The unpaid balance remaining at 1/31/09 represents lease payments due for the period from 11/24/08 -  11/30/08 but will be paid if these particular leases are assumed.


FORM MOR-6 2/2008 PAGE 1 OF 1


---

In re

        LENOX SALES INC., ET AL

        Case No.

        08-14679 (ALG) (Jointly Administered)Debtor

        Reporting Period:

        1/04/09 - 1/31/09




DEBTOR QUESTIONNAIRE



Must be completed each month.  If the answer to any of the questions is Yes, provide a detailed explanation of each item.  Attach additional sheets if necessary.

        Yes

        No1

        Have any assets been sold or transferred outside the normal course of business this reporting period?

        

        X2

        Have any funds been disbursed from any account other than a debtor in possession account this reporting period?

        

        X3

        Is the Debtor delinquent in the timely filing of any post-petition tax returns?

        

        X4

        Are workers compensation, general liability or other necessary insurance coverages expired or cancelled, or has the debtor received notice of expiration or cancellation of such policies?

        

        X5

        Is the Debtor delinquent in paying any insurance premium payment?

        

        X6

        Have any payments been made on pre-petition liabilities this reporting period?

        X7

        Are any post-petition receivables (accounts, notes or loans) due from related parties?

        

        X8

        Are any post-petition payroll taxes past due?

        

        X9

        Are any post-petition State or Federal income taxes past due?

        

        X10

        Are any post-petition real estate taxes past due?

        X11

        Are any other post-petition taxes past due?

        

        X12

        Have any pre-petition taxes been paid during this reporting period?

        X13

        Are any amounts owed to post-petition creditors delinquent?

        

        X14

        Are any wage payments past due?

        

        X15

        Have any post-petition loans been been received by the Debtor from any party?

        X16

        Is the Debtor delinquent in paying any U.S. Trustee fees?

        X17

        Is the Debtor delinquent with any court ordered payments to attorneys or other professionals?

        

        X18

        Have the owners or shareholders received any compensation outside of the normal course of business?

        

        X




6

        Payments of pre-petition liabilities have been made pursuant to Orders of the Bankruptcy Court10

        Certain real estate taxes are passed through to the Debtor from their landlords. These real estate taxes for the period 11/24/08 through 11/30/08 are past due.12

        Pursuant to Orders of the Bankruptcy Court, the debtor has paid certain pre-petition taxes such as sales taxes.15

        The Debtor entered into a debtor in possession revolving credit facility on Nov. 25, 2008 and drew on the facility during the period covered by this report16

        The Debtor is awaiting corrected invoices from the UST for the period ended December 2008 and will propmtly pay upon receipt






FORM MOR-7 2/2008 PAGE 1 OF 1


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