Exhibit 99.1


In re:		OSH 1 Liquidating Corporation (f/k/a In re: Orchard Supply Hardware Stores Corporation),		Case No. 13-11565


et al.,				Reporting Period: July 7 - August 3, 2013

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

CORPORATE MONTHLY OPERATING REPORT


Debtor:		Orchard Supply Hardware Stores Corporation, et al. [1]
Case Number:		13-11565
Reporting Period:		July 7, 2013 to August 3, 2013 [2]


REQUIRED DOCUMENTS	Form No.	Document Attached	Explanation Attached	Affidavit/Supplement Attached
Schedule of Cash Receipts and Disbursements	MOR-1	Yes

Bank Reconciliation (or copies of debtor’s bank reconciliations) [3]	MOR-1a	Yes

Schedule of Professional Fees Paid	MOR-1b	Yes

Copies of bank statements	Exhibit A	Yes

Cash disbursements journals	Exhibit B	Yes

Statement of Operations	MOR-2	Yes

Balance Sheet	MOR-3	Yes

Status of Postpetition Taxes	MOR-4	Yes

Copies of IRS Form 6123 or payment receipt		No	Not applicable for reporting period.

Copies of tax returns filed during reporting period		No	Not applicable for reporting period.

Summary of Unpaid Postpetition Debts	MOR-4	Yes

Listing of aged accounts payable	MOR-4	Yes

Accounts Receivable Reconciliation and Aging	MOR-5	Yes

Debtor Questionnaire	MOR-6	Yes

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



Signature of Debtor				Date


Signature of Joint Debtor				Date

/s/ KEVIN R. CZINGER				9/16/13
Signature of Authorized Individual *				Date

KEVIN R. CZINGER				Authorized Signatory
Printed Name of Authorized Individual				Title 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.

Notes:

[1]

The Debtors are the following three entities (their respective case numbers follow in parentheses): Orchard Supply Hardware Stores Corporation (13-11565), OSH Properties LLC (13-11566), and Orchard Supply Hardware LLC (13-11567). The mailing address of each of the Debtors, solely for purposes of notices and communications, is 6450 Via Del Oro, San Jose, California 95119.

[2]

August 3, 2013 is the Debtor’s July fiscal month end.

[3]

Global Note - Certain bank accounts were established in the Orchard Supply Hardware Stores Corporation entity for legal purposes but for financial reporting purposes they do not map to legal entities.

Page 1 or 9

In re: OSH 1 Liquidating Corporation (f/k/a In re: Orchard Supply Hardware Stores Corporation), et al.,

Case No. 13-11565

Reporting Period: July 7 - August 3, 2013

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

MOR -1

($000)


Debtor:		Orchard Supply Hardware Stores Corp.			OSH Properties LLC		Orchard Supply Hardware, LLC			Orchard Supply Hardware Stores Corp., et al.
Case Number:		13-11565			13-11566		13-11567

	ALLOCATION [1]								BANK ACCOUNTS
	July 7, 2013 - August 3, 2013			July 7, 2013 - August 3, 2013		July 7, 2013 - August 3, 2013			B of A - Money Market Invest- ment			B of A - Main Concen- tration [1]			B of A - Store Depo- sitory Concen- tration		B of A - AP Checking [3]			B of A - Payroll Checking		B of A - Payroll Checking		B of A - Corporate Depo- sitory			Bank PNC Pinacle- NSF Funding		WF - AP Funding- Traveling Expenses		CURRENT MONTH ACTUAL (TOTAL OF ALL ACCOUNTS)
		Last 4 Digits of Bank Account:								# 3 BCS			#2794			#3268		#6446			#4222		#5154		#0508			#3422		#1749

CASH BEGINNING OF MONTH									$	50		$	2,046		$	16	$	1,354		$	372	$	7	$	642		$	1	$	34	$	4,522

RECEIPTS
MERCHANDISE SALES [2]	$	—		$	—	$	60,878		$	—		$	994		$	59,884	$	—		$	—	$	—	$	—		$	—	$	—	$	60,878
SALE OF CLOSING STORE INVENTORY		—			—		—			—			—			—		—			—		—		—			—		—		—
TENANT IMPROVEMENT REIMBURSEMENTS		—			—		—			—			—			—		—			—		—		—			—		—		—
INTER-ACCOUNT TRANSFERS		50			—		52,550			—			50			—		46,100			6,253		—		—			—		198		52,600
REVOLVER BORROWINGS		55,600			—		—			—			55,600			—		—					—		—			—		—		55,600
OTHER		16			—		489			—			16			—		49					—		440			—		—		504

TOTAL RECEIPTS	$	55,666		$	—	$	113,917		$	—		$	56,660		$	59,884	$	46,149		$	6,253	$	—	$	440		$	—	$	198	$	169,583


DISBURSEMENTS
INTER-ACCOUNT TRANSFERS	$	52,353		$	—	$	248		$	50		$	52,353		$	—	$	198		$	—	$	—	$	—		$	—	$	—	$	52,600
REVOLVER PAYDOWNS		—			—		60,498			—			—			59,431		—			—		—		1,067			—		—		60,498
PAYMENT TO GREAT AMERICAN		—			—		5,116			—			—			—		5,116			—		—		—			—		—		5,116
MERCHANDISE		—			—		27,455			—			—			—		27,455			—		—		—			—		—		27,455
FREIGHT		—			—		1,367			—			—			—		1,367			—		—		—			—		—		1,367
PAYROLL & BENEFITS		101			—		6,214			—			101			—		—			6,214		—		—			—		—		6,316
RENT		—			—		4,244			—			—			—		4,244			—		—		—			—		—		4,244
REAL ESTATE TAXES		—			—		5			—			—			—		5			—		—		—			—		—		5
OTHER OCCUPANCY		—			—		2,349			—			—			—		2,349			—		—		—			—		—		2,349
SALES, USE, & OTHER TAXES		3,315			—		—			—			3,315			—		—			—		—		—			—		—		3,315
SELLING (STORES)		—			—		1,680			—			—			—		1,680			—		—		—			—		—		1,680
INSURANCE (STORES)		—			—		10			—			—			—		10			—		—		—			—		—		10
ADVERTISING		—			—		1,155			—			—			—		1,155			—		—		—			—		—		1,155
G&A / OTHER OPERATING		2,788			—		2,366			—			2,788			—		2,183			—		—		—			—		183		5,154
PROFESSIONAL FEES		—			—		114			—			—			—		114			—		—		—			—		—		114
CAPITAL EXPENDITURES		—			—		498			—			—			—		498			—		—		—			—		—		498
INTEREST		43			—		—			—			43			—		—			—		—		—			—		—		43
OUTSTANDING CHECKS [3]		—			—		1,052			—			—			—		1,052			—		—		—			—		—		1,052

TOTAL DISBURSEMENTS	$	58,600		$	—	$	114,371		$	50		$	58,600		$	59,431	$	47,426		$	6,214	$	—	$	1,067		$	—	$	183	$	172,971


NET CASH FLOW (RECEIPTS LESS DISBURSEMENTS	$	(2,934	)	$	—	$	(454	)	$	(50	)	$	(1,940	)	$	452	$	(1,277	)	$	38	$	—	$	(627	)	$	—	$	15	$	(3,388	)


CASH - END OF MONTH									$	—		$	107		$	468	$	77		$	410	$	7	$	15		$	1	$	49	$	1,135
																																[4	]


DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES:	OSH Stores Corp. (13-11565)			OSH Properties, LLC (13-11566)		OSH LLC (13- 11567)			TOTAL
TOTAL DISBURSEMENTS	$	58,600		$	—	$	114,371		$	172,971

Less: Transfers to Debtor In Possession Accounts	$	(52,353	)	$	—	$	(248	)	$	(52,600	)
Plus: Estate Disbursements Made by Outside Sources (i.e. from escrow accounts)	$	—		$	—	$	—		$	—

TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES	$	6,247		$	—	$	114,123		$	120,370

Note:

[1]

The Main Concentration account is owned by Orchard Supply Hardware Stores Corp. All other bank accounts are owned by Orchard Supply Hardware, LLC.

[2]

Includes sales tax receipts and proceeds from 8 stores GOB for the period 7/7 to 8/3. All merchandise sales belong to Orchard Supply Hardware, LLC.

[3]

The disbursements listed for the AP Checking account is on a check-cut basis.

[4]

Excludes Utility deposit of $455K in BOA#5183 required for bankruptcy court order.

Page 2 or 9

In re: OSH 1 Liquidating Corporation (f/k/a In re: Orchard Supply Hardware Stores Corporation), et al.,

Case No. 13-11565

Reporting Period: July 7 - August 3, 2013

BANK RECONCILIATIONS

MOR-1a

($000)

Debtor:

Orchard Supply Hardware Stores Corporation, et al.

Case Number:

13-11565


	B of A - Money Market Investment		B of A - Main Concentration [1]		B of A - Store Depository Concentration		B of A - AP Checking			B of A - Payroll Checking			B of A - Payroll Checking		B of A - Corporate Depository		Bank PNC Pinacle-NSF Funding		WF - AP Funding- Traveling Expenses			Cash at stores		Total [3][4]
	# 3 BCS		#2794		#3268		#6446			#4222			#5154		#0508		#3422		#1749
BALANCE PER BOOKS	$	—	$	661	$	1,856	$	(2,937	)	$	335		$	—	$	15	$	1	$	44		$	570	$	545

BANK BALANCE [2]	$	—	$	107	$	468	$	77		$	410		$	7	$	15	$	1	$	49		$	—		1,135
(+) DEPOSITS IN TRANSIT:		—		554		1,369		99			—			—		—		—		—			—		2,021
(-) OUTSTANDING CHECKS:		—		—		—		(3,308	)		(100	)		—		—		—		(5	)		—		(3,413	)
OTHER:		—		—		—		—						—		—		—		—			—		—

ADJUSTED BANK BALANCE	$	—	$	661	$	1,837	$	(3,132	)	$	310		$	7	$	15	$	1	$	45		$	—	$	(257	)

Note:

[1]

The Main Concentration account is owned by Orchard Supply Hardware Stores Corp. All other bank accounts are owned by Orchard Supply Hardware, LLC. The two payroll accounts are consolidated into one account on the Company’s books.

[2]

Ending cash balance from previous page.

[3]

Excludes Utility deposit of $455K in BOA#5183 required for bankruptcy court order.

Page 3 or 9

In re: OSH 1 Liquidating Corporation (f/k/a In re: Orchard Supply Hardware Stores Corporation), et al.,

Case No. 13-11565

Reporting Period: July 7 - August 3, 2013

SCHEDULE OF PROFESSIONAL FEES PAID

MOR -1b

($000)

Debtor:

Orchard Supply Hardware Stores Corporation, et al.

Case Number:

13-11565

Payee

Period Covered

Amount
Approved

Payor

Check

Amount Paid

Year-To-Date

Number

Date

Fees

Expenses

Fees

Expenses

Zolfo Cooper

7/1/13 to 7/31/13

107

Orchard Supply
Hardware, LLC

Wire Transfer

7/18/2013

100

Dechert

6/1/13 to 6/16/13

Orchard Supply
Hardware, LLC

Wire Transfer

7/31/2013

Total $ Paid

113

Note: All professional fees are paid out of the Bank Of America AP

Page 4 or 9

In re: OSH 1 Liquidating Corporation (f/k/a In re: Orchard Supply Hardware Stores Corporation), et al.,

Case No. 13-11565

Reporting Period: July 7 - August 3, 2013

UNAUDITED STATEMENT OF OPERATIONS

FOR THE 4 WEEKS ENDED AUGUST 3, 2013

(In thousands)


	4 Weeks Ended
	August 3, 2013
	OSH LLC			OSH Properties LLC		Eliminations			Orchard Supply Hardware Stores Corp.

REVENUES	$	46,889		$	268	$	(268	)	$	46,889

COSTS AND EXPENSES:
Cost of sales		33,044			119		(268	)		32,896
Selling and administrative		14,878			—					14,878
Depreciation and amortization		1,843			125					1,968

Total operating costs and expenses		49,765			244		(268	)		49,741


OPERATING (LOSS) INCOME		(2,876	)		24		—			(2,852	)

INTEREST EXPENSE		3,389			—		—			3,389


(LOSS) INCOME BEFORE INCOME TAX		(6,265	)		24		—			(6,241	)

INCOME TAX (BENEFIT) EXPENSE		—			—		—


NET (LOSS) INCOME	$	(6,265	)	$	24	$	—		$	(6,241	)

Page 5 or 9

In re: OSH 1 Liquidating Corporation (f/k/a In re: Orchard Supply Hardware Stores Corporation), et al.,

Case No. 13-11565

Reporting Period: July 7 - August 3, 2013

UNAUDITED BALANCE SHEETS

AS OF AUGUST 3, 2013

(In thousands)


	August 3, 2013
	OSH Stores Corp.		OSH LLC			OSH Properties LLC		Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	—	$	(2,384	)	$	7,498	$	5,114
Merchandise inventories		—		164,768			—		164,768
Income tax receivable		—		878			2,659		3,537
Deferred income taxes		—		1,658			—		1,658
Prepaid expenses and other current assets		—		31,645			—		31,645

Total current assets		—		196,565			10,157		206,722

PROPERTY AND EQUIPMENT - Net		—		145,498			21,640		167,138

OTHER INTANGIBLE ASSETS		—		24,439			1,107		25,546

DEFERRED FINANCING COSTS, NET		—		4,908			—		4,908

OTHER LONG TERM ASSETS		—		—			—		—


TOTAL	$	—	$	371,410		$	32,904	$	404,314


LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:
Merchandise payables	$	—	$	17,802		$	—	$	17,802
Accrued expenses and other liabilities		—		36,612			—		36,612

Current liabilities not subject to compromise		—		54,414			—		54,414

Merchandise payables		—		37,838			—		37,838
Current portion of long-term debt and capital lease obligations		—		219,257			—		219,257
Accrued expenses and other liabilities		—		22,726			—		22,726

Current liabilities subject to compromise		—		279,821			—		279,821


Total current liabilities		—		334,235			—		334,235

LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS		—		43,803			—		43,803

LONG-TERM DEPOSITS FROM SALE OF REAL ESTATE		—		40,957			—		40,957

OTHER LONG-TERM LIABILITIES		—		40,335			1,281		41,616

DEFERRED INCOME TAXES		—		(20,836	)		27,926		7,090

Total liabilities		—		438,494			29,207		467,701

STOCKHOLDERS’ EQUITY		—		(67,084	)		3,697		(63,387	)


TOTAL	$	—	$	371,410		$	32,904	$	404,314

Page 6 or 9

In re: OSH 1 Liquidating Corporation (f/k/a In re: Orchard Supply Hardware Stores Corporation), et al.,

Case No. 13-11565

Reporting Period: July 7 - August 3, 2013

STATUS OF POST-PETITION TAXES

MOR - 4

($000)

Debtor:

Orchard Supply Hardware Stores Corporation, et al.

Case Number:

13-11565


	Beginning Tax		Amount Withheld and/or Accrued		Amount Paid		Date Paid		Check # or EFT		Ending Tax
Federal
Withholding [1]	$	182	$	743	$	746		—		—	$	179
FICA-Employee [1]		150		605		608		—		—		147
FICA-Employer [1]		150		604		607		—		—		146
Unemployment		3		11		12		—		—		3
Income		—		—		—		—		—		—
Other		—		—		—		—		—		—

Total Federal Taxes [1]	$	485	$	1,962	$	1,973		—		—	$	474

State and Local
Withholding [1]		67		268		269		—		—		65
Sales/Use		3,470		4,145		3,315		—		—		4,301
Unemployment		24		84		88		—		—		20
Real Property		1,143		570		48		—		—		1,665
Personal Property		96		101		7		—		—		190
CA Employment Training Fund [1]		1		2		2		—		—		0
Tri County Metro District Tax [1]		0		1		1		—		—		0
Oregon State Workers Comp [1]		0		0		0		—		—		0

Total State and Local	$	4,801	$	5,171	$	3,730		—		—	$	6,242


Total Taxes	$	5,286	$	7,133	$	5,703		—		—	$	6,716

[1]

Payroll taxes are totals from two payroll tax payment made during the fiscal month of July for the pay periods June 30 - July 13 and July 14 - July 27. Payroll accounts are owned by Orchard Supply Hardware, LLC.


LISTING OF AGED POST-PETITION		Orchard Supply Hardware Stores Corporation, et al.
ACCOUNTS PAYABLE		13-11565
($000)


	Number of Days Past Due
	Current		31-60		61-90		Over 91		Total
Accounts Payable	$	13,896	$	—	$	—	$	—	$	13,896
Wages Payable		36		—		—		—		36
Taxes Payable		6,716		—		—		—		6,716
Rent/Leases-Building		970		—		—		—		970
Rent/Leases-Equipment		—		—		—		—		—
Secured Debt/Adequate Protection Payments		146		—		—		—		146
Professional Fees		—		—		—		—		—
Amounts Due to Insiders		—		—		—		—		—

Total Post-petition Debts	$	21,764	$	—	$	—	$	—	$	21,764

Page 7 or 9

In re: OSH 1 Liquidating Corporation (f/k/a In re: Orchard Supply Hardware Stores Corporation), et al.,

Case No. 13-11565

Reporting Period: July 7 - August 3, 2013

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING

MOR - 5

($000)


Debtor:		Orchard Supply Hardware Stores Corporation, et al.
Business unit number:		13-11565


Accounts Receivable Reconciliation	Amount
Total Accounts Receivable at the beginning of the reporting period	$	10,890

Plus: Amounts billed during the period		54,309
Less: Amounts collected during the period		56,993

Total Accounts Receivable at the end of the reporting period	$	8,206


Accounts Receivable Aging	0-30 Days		31-60 Days		61-90 Days		91+ Days		Total
0 - 30 days old	$	8,206	$	—	$	—	$	—	$	8,206
31 - 60 days old		—		—		—		—		—
61 - 90 days old		—		—		—		—		—
91+ days old		—		—		—		—		—

Total Accounts Receivable	$	8,206	$	—	$	—	$	—	$	8,206


Less: Bad Debts (Amount considered uncollectible)		—		—		—		—		—

Net Accounts Receivable	$	8,206	$	—	$	—	$	—	$	8,206

Note: Includes credit card receivables.

Page 8 or 9

In re: OSH 1 Liquidating Corporation (f/k/a In re: Orchard Supply Hardware Stores Corporation), et al.,

Case No. 13-11565

Reporting Period: July 7 - August 3, 2013

DEBTOR QUESTIONNAIRE

MOR - 6


Must be completed each month.	Yes	No	Notes:
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.		X	8 GOB stores inventory sold to Great American in month of June.

2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.		X

3. Have all post petition tax returns been timely filed? If no, provide an explanation below.	X

4. Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.	X

5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.		X


Note:		This Questionnaire covers Orchard Supply Hardware Stores Corp., OSH Properties, LLC and Orchard Supply Hardware, LLC.

Page 9 or 9

Total cash balance per books

Credit Card receivable

Cash per Balance Sheet

OSH 1 LIQUIDATING Corp 8-K