Exhibit 99.1

UNITED STATES BANKRUPTCY COURT

DISTRICT OF NEW JERSEY

MONTHLY OPERATING REPORT

File with Court and submit copy to United States Trustee within 20 days after end of month.

Submit copy of report to any official committee appointed in the case.

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.

*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.

MOR

(04/07)

NOTES TO MONTHLY OPERATING REPORT

General

The report includes activity from the following Debtors and related Case Numbers:

General Notes:

The Debtors are filing their consolidated Monthly Operating Report solely for the purposes of complying with the monthly operating reporting requirements in the Debtors' Chapter 11 cases. The financial and supplemental information contained herein is presented on a preliminary and unaudited basis, remains subject to future adjustments and may not comply in all material respects with generally accepted accounting principles in the United States of America ("U.S. GAAP"). This Monthly Operating Report should not be relied on by any persons for information relating to current or future financial conditions, events, or performance of any of the Debtors or their affiliates. Financial information presented in this Monthly Operating Report reflects results on a consolidated basis for the Debtors. The period ended reflects the Debtors fiscal month end which may end on a different day than a calendar month end.

The financial information has 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, the Debtors believe that the financial information could be subject to changes, which 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 prepared in accordance with U.S. GAAP, including but not limited to, adjustments for income tax provisions and related deferred tax asset and liability accounts and certain other asset and liability accounts.

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 combined results of operations and financial position of the Debtors in the future.

The Debtors reserve all rights to amend or supplement this Monthly Operating Report in all respects, as may be necessary or appropriate. Nothing contained in this Monthly Operating Report shall constitute a waiver of any of the Debtors' rights or an admission with respect to their Chapter 11 cases.

FORM MOR-1a

(04/07)

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

Note:

1. Excludes intercompany activity

2. The Company makes all cash disbursements from Lerner New York, Inc. The table above has allocated these disprusments to each of the

debtors based on an estimate of costs paid on each debtor's behalf

3. Debtors maintain a fiscal calendar and the period ended represents Debtors fiscal month which is different from a calendar month

FORM MOR-1

(04/07)

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

Note: See MOR 2 & 3 for operating results reported by debtor entity

FORM MOR-1

(04/07)

STATEMENT OF OPERATIONS

(Income Statement)

Notes:

1. Debtors maintain a fiscal calendar and the period ended represents Debtors fiscal month which is different from a calendar month    

2. Results shown have not been audited and are based on Managements estimates which may include monthly pro rata estimates based on the stub period  

FORM MOR-2

(04/07)

BALANCE SHEET