/raid1/www/Hosts/bankrupt/TCR_Public/070825.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

            Saturday, August 25, 2007, Vol. 11, No. 201

                             Headlines

ADVANCED MARKETING: Files Operating Report for June 2007
ADVANCED MARKETING: AMS Corp. Files Operating Report for May 2007
ASARCO LLC: Earns $41,932,000 in Month Ended July 31, 2007
HANCOCK FABRICS: Posts $10,062,000 Net Loss in July 2007
MUSICLAND HOLDING: Earns $101,000 in Month Ended July 31, 2007

PUBLICARD INC: Posts $52,491 Net Loss in July 2007
THAXTON GRP: Posts $21MM Net Loss for Period Ended June 30, 2007

                             *********

ADVANCED MARKETING: Files Operating Report for June 2007
--------------------------------------------------------
Advanced Marketing Services, Inc., and its debtor-affiliates
filed with the Court a copy of their monthly operating report
ending June 30, 2007.

Curt Smith, chief executive officer and chief financial officer
of AMS, discloses that the company's total disbursements for
calculating the U.S. Trustee quarterly fees aggregated
$2,017,691.

Mr. Smith states that the Monthly Operating Report does not
contain a balance sheet and income statement.

                Advanced Marketing Services, Inc.
         (Excluding Publishers Group West Incorporated)
                    Statement of Cash Flows
                    From June 1 to 29, 2007

CASH RECEIPTS
   B&T Purchase Price                                         -
   Reimbursement under B&T TSA                                -
   Inventory                                            $86,303
   CIA inventory                                              -
   Vendor accounts receivable                                 -
   Prepaid expenses                                           -
   CSV Life Insurance                                         -
   Foreign Subs                                         440,950
   Standby L/C Expirations                                    -
   WF Foothill Fee Reserve                              229,076
   Interest Income                                      140,551
   Other                                                 96,139
                                                     ----------
Total Cash Receipts                                    $993,019
                                                     ==========

CASH DISBURSEMENTS
   Publisher payments                                         -
   Payroll & health insurance                          $587,615
   KERP                                                       -
   MIP                                                   38,044
   Insurance                                            144,941
   Rent-facilities                                      233,091
   Freight                                               39,359
   Shipping Supplies                                     45,750
   Utilities                                              1,068
   IT Expenses                                           15,138
   Travel                                                 3,863
   Professional fees                                    719,422
   US Trustee Fees                                       10,500
   Office equipment and supplies                              -
   Communications                                         1,979
   Warehouse equipment                                    2,049
   Directors' fees                                       68,268
   Miscellaneous                                        113,077
   Post-petition A/P                                          -
                                                     ----------
Total Disbursements                                   2,024,164
                                                     ----------
Net Operating Cash Outflow                          ($1,031,145)
                                                     ==========

Based in San Diego, Calif., Advanced Marketing Services, Inc.
-- http://www.advmkt.com/-- provides customized merchandising,
wholesaling, distribution and publishing services, currently
primarily to the book industry.  The company has operations in the
U.S., Mexico, the United Kingdom and Australia and employs
approximately 1,200 people Worldwide.

The company and its two affiliates, Publishers Group Incorporated
and Publishers Group West Incorporated filed for chapter 11
protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480
through 06-11482).  Suzzanne S. Uhland, Esq., Austin K. Barron,
Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP,
represent the Debtors as Lead Counsel.  Chun I. Jang, Esq., Mark
D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton
& Finger, P.A., represent the Debtors as Local Counsel.
Lowenstein Sandler PC represents the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from
their creditors, they listed estimated assets and debts of more
than $100 million.

The Debtors have until Sept. 26, 2007 to exclusively file a plan.
(Advanced Marketing Bankruptcy News, Issue No. 16 Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or   
215/945-7000).


ADVANCED MARKETING: AMS Corp. Files Operating Report for May 2007
-----------------------------------------------------------------
Advanced Marketing Services Inc. and its debtor-affiliates filed
with the Court a copy of their Monthly Operating Report ending
May 31, 2007, containing a Balance Sheet as of June 2, and a
Statement of Operations for the period May 8 to 26.

Curt Smith, chief executive officer and chief financial officer
of AMS, reports that the company has disbursed a total of
$2,694,567 for calculating the United States Trustee's quarterly
fees.

According to Mr. Smith, the Debtors' reorganization costs through
June 2 are estimated at $45,826,664, including losses on the sale
of their assets to Baker and Taylor, Inc.

                            AMS Corp.
                          Balance Sheet
                        As of June 2, 2007

ASSETS
Current Assets
   Cash and Cash Equivalents                           $326,804
   Short-term Investments                            38,054,675
   Accounts Receivable, Net                          (1,890,434)
   Vendor & Misc. Receivables                        16,054,746
   Intercompany Receivables                           9,831,401
                                                     ----------
   Inventory                                         43,214,634
   Freight on Inventory                                 556,522
   Inventory in Process, in Transit                           -
   Inventory Reserves                                (9,136,332)
                                                     ----------
   Inventory, Net                                    34,634,824
                                                     ----------
   Deferred Income Tax                                        -
   Income Tax Receivable                                      -
   Prepaid Expenses                                   6,862,194
                                                     ----------
Total Current Assets                                103,874,211
                                                     ----------
PROPERTY & EQUIPMENT
   Leasehold Improvements                                     -
   Office Furniture & Equipment                               -
   Warehouse Equipment                                        -
   Autos                                                      -
                                                     ----------
Total Property & Equipment                                    -

Accumulated Depreciation                                      -
                                                     ----------
Net Property & Equipment                                      -

Long-Term Investments                                    16,709
Goodwill & Other Assets                              12,014,487
                                                    -----------
TOTAL ASSETS                                       $115,905,407
                                                    ===========

LIABILITIES & STOCKHOLDER EQUITY
Current Liabilities:
   Accounts Payable                                  $2,217,471
   Accrued Liabilities                               12,158,217
   Income Taxes Payable                                 168,644
   Intercompany Payables                                      -
   Short-term Debt                                       (9,491)
                                                    -----------
TOTAL CURRENT LIABILITIES                            14,534,841
                                                    -----------
   Long Term Liabilities                            164,555,982
                                                    -----------
TOTAL LIABILITIES                                  $179,090,823
                                                    ===========

STOCKHOLDERS' EQUITY
   Common Stock @ Par Value                              23,350
   Additional Paid-in Capital                        37,196,580
   Common Stock Dividend                             (4,213,583)
   Deferred Compensation                                      -
   Retained Earnings - Prior Year                   (56,406,906)
   Retained Earnings - Current Year                 (17,643,898)
   Cumulative Other Comp. Income                       (584,589)
   Treasury Stock                                   (21,556,370)
                                                    -----------
TOTAL STOCKHOLDERS' EQUITY                          (63,185,416)
                                                    -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $115,905,407
                                                    ===========


                            AMS Corp.
                     Statement of Operations
                     From May 8 to 26, 2007

GROSS SALES
Invoiced Amount                                        $586,238
Stickering Revenue                                            -
Service & Fee Revenue                                         -
Interco Revenue                                               -
Total Sales Returns                                      (1,218)
Sales Returns Provision                                       -
Unprocessed Sales Returns                                     -
                                                     ----------
Sales Less Returns Prov.                                585,020
                                                     ----------
SALES DEDUCTIONS
Cash Discount Provision                                       -
New Store Allowance                                           -
Customer Rebates                                              -
Co-op Allowance                                               -
Misc. Allowance & Adjustment                              1,700
Sales Commissions                                             -
                                                     ----------
Total Sales Deductions                                    1,700
                                                     ----------
NET SALES                                              $583,321
                                                     ==========

COST OF NET SALES
Standard Cost of Sales                               $1,328,390
Interco Cost of Sales                                         -
Standard Cost of Returns                                  1,325
Standard Cost of Returns Provision                            -
Standard Cost of Returns - Unprocessed                        -
Purchase Variance, Revaluation                         (757,539)
Return to Publisher Variance                            (11,328)
Freight In Costs of Sales                                22,013
Freight - AGL                                           (21,822)
Freight Customer Returns                                    885
Freight -Return to Publisher                              1,095
Freight Warehouse Transfer                                9,493
Quantity Adjustments                                    289,675
Markdown Expense                                              -
Publisher Incentive                                           -
Publisher Account Settlements                                 -
Other Costs of Sales                                      6,513
                                                     ----------
Total Cost of Sales                                     868,700
                                                     ----------
GROSS PROFIT                                          ($285,379)
                                                     ==========

VARIABLE EXPENSES
Freight Sales Shipments                                ($16,271)
Freight - Special Shipments                                   -
Shipping Supplies and Service                             3,675
Payroll DC operations                                   164,995
Distribution Fees                                             -
                                                     ----------
Total Variable Expenses                                 152,399
                                                     ----------
VARIABLE PROFIT MARGIN                                 (437,778)
                                                     ----------
FIXED EXPENSE
Payroll (excl. DC Oper.)                                458,055
Travel & Entertainment                                    7,225
Professional Services                                    55,417
Information Services                                     69,514
Office Equipment & Supplies                              (6,452)
Telephone Expense                                        (2,117)
Facility Occupancy                                      232,251
General Insurance                                       538,667
Depreciation                                                  -
Uncollectible Accounts                                        -
Customer Service                                          2,386
Promotion Expense                                        11,644
Express Mail & Postage                                    4,762
Training & Education                                          -
Exchange Gain/Loss                                            -
Miscellaneous Expense                                   154,210
Shareholder's Relations                                  29,804
Co-op Advertising Exp/Inc                                     -
Miscellaneous Income                                     (2,901)
Warehouse Equipment                                      32,942
                                                     ----------
Total Fixed Expenses                                  1,585,408
                                                     ----------
OPERATING INCOME:                                    (2,023,186)
                                                     ----------
Interest Expense                                              -
Interest Income                                        (170,850)
Equity in Inc/Loss of Affiliates                              -
Other Non-operating Expenses                         14,063,013
                                                     ----------
NON-OPERATING INCOME                                 13,892,164
                                                     ----------
INCOME BEFORE INC TAX                               (15,915,350)

Tax Provision                                           (23,084)
                                                     ----------
NET INCOME                                         ($15,892,266)
                                                     ==========

Based in San Diego, Calif., Advanced Marketing Services, Inc. --
http://www.advmkt.com/-- provides customized merchandising,
wholesaling, distribution and publishing services, currently
primarily to the book industry.  The company has operations in the
U.S., Mexico, the United Kingdom and Australia and employs
approximately 1,200 people Worldwide.

The company and its two affiliates, Publishers Group Incorporated
and Publishers Group West Incorporated filed for chapter 11
protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480
through 06-11482).  Suzzanne S. Uhland, Esq., Austin K. Barron,
Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP,
represent the Debtors as Lead Counsel.  Chun I. Jang, Esq., Mark
D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton
& Finger, P.A., represent the Debtors as Local Counsel.
Lowenstein Sandler PC represents the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from
their creditors, they listed estimated assets and debts of more
than $100 million.

The Debtors have until Sept. 26, 2007 to exclusively file a plan.
(Advanced Marketing Bankruptcy News, Issue No. 16 Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or   
215/945-7000).


ASARCO LLC: Earns $41,932,000 in Month Ended July 31, 2007
----------------------------------------------------------

                       ASARCO LLC, et al.
                         Balance Sheet
                       As of July 31, 2007

ASSETS
   Current Assets:
   Cash                                           $685,326,000
   Restricted Cash                                  27,601,000
   Accounts receivable, net                        133,407,000
   Inventory                                       260,152,000
   Prepaid expenses                                  3,850,000
   Other current assets                             27,916,000
                                                --------------
Total Current Assets                             1,138,252,000

Net property, plant and equipment                  454,796,000
Other Assets
   Investments in subs                             107,488,000
   Advances to affiliates                              383,000
   Prepaid pension & retirement plan                         0
   Non-current deferred tax asset                   40,951,000
   Other                                            98,408,000
                                                --------------
Total assets                                    $1,840,278,000
                                                ==============

LIABILITIES
   Postpetition liabilities:
   Accounts payable                                $59,243,000
   Accrued liabilities                             179,614,000
   Debtor-in-possession financing                            0
                                                --------------
Total postpetition liabilities                     238,857,000

Prepetition liabilities:
Not subject to compromise - credit                   4,303,000
Not subject to compromise - other                   87,363,000
Advances from affiliates                            24,838,000
Subject to compromise                            1,494,798,000
                                                --------------
Total prepetition liabilities                    1,611,302,000
                                                --------------
Total liabilities                                1,850,160,000
                                                --------------

OWNERS' EQUITY (DEFICIT)
Common stock                                       508,325,000
Additional paid-in capital                         104,578,000
Other comprehensive income                        (262,215,000)
Retained earnings: filing date                  (1,070,007,000)
                                                --------------
Total prepetition owners' equity                  (719,319,000)
Retained earnings: post-filing date                709,437,000
                                                --------------
Total owners' equity (net worth)                    (9,882,000)

Total liabilities and owners' equity            $1,840,278,000
                                                ==============

                      ASARCO LLC, et al.
             Consolidated Statement of Operations
                  Month Ending July 31, 2007

Sales                                             $139,258,000
Cost of products and services                       70,218,000
                                                --------------
Gross profit                                        69,040,000

Operating expenses:
Selling and general & admin expenses                 3,769,000
Depreciation & amortization                          3,138,000
Provision accretion expense of asset                         0
retirement obligation                                  163,000
                                                --------------
Operating income                                    61,970,000

Interest expense                                       224,000
Interest income                                     (3,154,000)
Reorganization expenses                              7,236,000
Other miscellaneous (income) expenses              (10,651,000)
                                                --------------
Income (loss) before taxes                          68,315,000
Income taxes                                        26,382,000
                                                --------------
Net income (loss)                                  $41,932,000
                                                ==============

                      ASARCO LLC, et al.
          Consolidated Cash Receipts & Disbursements
                  Month Ending July 31, 2007

Receipts                                          $158,740,000
Disbursements:
Inventory material                                  19,150,000
Operating disbursements                             62,464,000
Capital expenditures                                 7,260,000
                                                --------------
Total disbursements                                 88,874,000

Operating cash flow                                 69,866,000
Reorganization disbursements                         6,717,000
                                                --------------
Net cash flow                                       63,149,000
Net payments to secured Lenders                              0
                                                --------------
Net change in cash                                  63,149,000
Beginning cash balance                             649,779,000
                                                --------------
Ending cash balances                              $712,927,000
                                                ==============

Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/--
is an integrated copper mining, smelting and refining company.
Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent.  The
Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr.
S.D. Tex. Case No. 05-21207).  James R. Prince, Esq., Jack L.
Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P.,
and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and
Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C.,
represent the Debtor in its restructuring efforts.  Lehman
Brothers Inc. provides the ASARCO with financial advisory services
And investment banking services.  Paul M. Singer, Esq., James C.
McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give
legal advice to the Official Committee of Unsecured Creditors and
David J. Beckman at FTI Consulting, Inc., gives financial advisory
services to the Committee.  When the Debtor filed for protection
from its creditors, it listed $600 million in total assets and
$1 billion in total debts.

The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521
through 05-20525).  They are Lac d'Amiante Du Quebec Ltee, CAPCO
Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd.  Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.

Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No.
05-21346) also filed for chapter 11 protection, and ASARCO has
asked that the three subsidiary cases be jointly administered
with its chapter 11 case.  On Oct. 24, 2005, Encycle/Texas' case
was converted to a Chapter 7 liquidation proceeding. The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee.  Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7
Trustee.

ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC,
and ASARCO Exploration Company Inc., filed for chapter 11
protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to
06-20776).

The Debtors' exclusive period to file a plan expires on Nov. 12,
2007. (ASARCO Bankruptcy News, Issue No. 53; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


HANCOCK FABRICS: Posts $10,062,000 Net Loss in July 2007
--------------------------------------------------------

             Hancock Fabrics, Inc. and Subsidiaries
                   Consolidated Balance Sheet
                       As of July 7, 2007

ASSETS

Current assets:
   Cash and cash equivalents                        $8,581,000
   Receivables, less allowance for
      doubtful accounts                              5,950,000
   Inventories                                      77,772,000
   Income taxes refundable                           7,116,000
   Prepaid expenses                                  2,469,000
                                                  ------------
   Total current assets                            101,888,000

Property and equipment                              45,478,000
Other assets                                        14,957,000
                                                  ------------
Total Assets                                      $162,323,000
                                                  ============

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities not subject to compromise
   Accounts payable                                $12,769,000
   Credit facility; DIP financing                   17,500,000
   Accrued liabilities                               7,859,000
   Deferred tax liabilities                          7,152,000

Liabilities subject to compromise
   Accounts payable                                 29,891,000
   Accrued liabilities                              14,415,000
   Long-term lease financing obligations             1,684,000
   Capital lease obligations                         1,722,000
   Postretirement benefits other than pensions       9,414,000
   Pension and SERP liabilities                      8,594,000
   Other liabilities                                 8,875,000
                                                  ------------
Total Liabilities                                  119,875,000
Total Shareholders' Equity                          42,448,000
                                                  ------------
Total liabilities and shareholders' equity        $162,323,000
                                                  ============

             Hancock Fabrics, Inc., and Subsidiaries
              Consolidated Statement of Operations
                For the Month Ended July 7, 2007

Sales                                              $23,922,000
Cost of goods sold                                  17,880,000
                                                  ------------
Gross profit                                         6,042,000

Selling, general & admin expense                    12,389,000
Depreciation and amortization                          388,000
                                                  ------------
Operating income (loss)                             (6,735,000)

Reorganization expenses                              2,972,000
Interest expense, net                                  355,000
                                                  ------------
Earnings (loss) before income taxes                (10,062,000)
Income taxes                                                 0
                                                  ------------
Net earnings (loss)                               ($10,062,000)
                                                  ============

             Hancock Fabrics, Inc., and Subsidiaries
               Consolidated Statement of Cash Flow
                For the Month Ended July 7, 2007

Cash flows from operating activities:
   Net earnings                                   ($10,062,000)
   Adjustments to reconcile net
   earnings to cash flows used in
   operating activities:
      Depreciation and amortization                    572,000
      Amortization of deferred loan costs              127,000
      LIFO charge (credit)                          (1,667,000)
      Reserve for store closings credits             4,608,000
      Reserve for obsolete inventory               (79,000,000)
      Reserve for sales returns and bad debts                0
      Stepped rent accrual                            (563,000)
      Loss on disposition of property and equipment    523,000
      Gain on disposition of lease
         financing obligations                        (153,000)
      Stock compensation expense                       125,000
   (Increase) decrease in assets
      Receivables and prepaid expenses                (466,000)
      Inventory at current cos                       5,413,000
      Income tax refundable                                  0
      Other non-current assets                       1,367,000
   Increase (decrease) in liabilities
      Accounts payable                               1,952,000
      Accrued liabilities                           (2,853,000)
      Income taxes payable                                   0
      Postretirement benefits other than pensions      (43,000)
      Long-term pension and SERP liabilities           158,000
      Reserve for store closings                      (202,000)
      Other liabilities                                (94,000)
                                                  ------------
Net cash used in operating activities               (1,337,000)

Cash flows from investing activities:
   Additions to property and equipment                (185,000)
   Proceeds from the disposition of
      property and equipment                           134,000
                                                  ------------
Net cash used in investing activities                  (51,000)

Cash flows from financing activities:
   Net borrowings on revolving credit agreement      6,895,000
   Payments for lease financing                         (1,000)
   Payments for capital leases                          (3,000)
   Payments for loan costs                            (715,000)
   Purchase of treasury stock                          (45,000)
   Tax obligation settled with treasury stock                0
                                                  ------------
Net cash provided by financing activities            6,131,000
                                    
Decrease in cash and cash equivalents                4,743,000
Cash, beginning of period                            3,838,000
                                                  ------------
Cash, end of period                                 $8,581,000
                                                  ============

Headquartered in Baldwyn, Mississippi, Hancock Fabrics Inc.
(OTC: HKFIQ) -- http://www.hancockfabrics.com/-- is a
specialty retailer of a wide selection of fashion and home
decorating textiles, sewing accessories, needlecraft supplies and
sewing machines.  Hancock Fabrics is one of the largest fabric
retailers in the United States, currently operating approximately
400 retail stores in approximately 40 states.  The company employs
approximately 7,500 people on a full-time and part-time basis.
Most of the company's employees work in its retail stores, or in
field management to support its retail stores.

The company and six of its debtor-affiliates filed for chapter 11
protection on March 21, 2007 (Bankr. D. Del. Lead Case No.
07-10353).  Robert J. Dehney, Esq., at Morris, Nichols, Arsht &
Tunnell, represent the Debtors.  When the Debtors filed for
protection from their creditors, they listed $241,873,900 in total
assets and 161,412,000 in total liabilities.  

The Debtors' exclusive period to file a plan expires on Aug. 27,
2007.  (Hancock Fabric Bankruptcy News, Issue No. 15,
http://bankrupt.com/newsstand/or 215/945-7000).


MUSICLAND HOLDING: Earns $101,000 in Month Ended July 31, 2007
--------------------------------------------------------------
     
                       Musicland Holding Corp.
                     Consolidated Balance Sheet
                        As of July 31, 2007

ASSETS
Current Assets
   Cash                                            $12,525,000
   Letters of Credit/Other Deposits                    415,000
   Other
      Amounts due from TransWorld                      250,000
      Receivables from Sub-leases                      774,000
      Amounts due from GOB sales                             0
      Miscellaneous CC                                  29,000
      Vendors Credit due from services               1,541,000
                                                 -------------
      Total                                         15,534,000
                                                 =============

Fixed Assets                                                 0
Other assets                           
   Transport Logistic deposit                                0
   Insurance Deposits                                3,977,000
   Utility and Tax Deposits                                  0
                                                 -------------
      TOTAL ASSETS                                 $19,511,000
                                                 =============
  
Liabilties & Shareholders' deficit
Current liabilities
   Accounts payable
      Due to Transworld                                      0
      Due to Deluxe                                          0
      Expense accruals                               2,840,000
   Other accrued liabilities
      Logistic Accrual                                       0
      Deferred Income                                        0
      Insurance Reserve                              3,380,000
      Accrued Payroll & Employee Benefits:
         Accrued Vacation                                    0
         Accrued Severance                                   0
         Accrued Employer Payroll Taxes                      0
         Accrued Benefits                                    0
      Sales Tax                                              0
      5% Admin. Fee on Wachovia L/C                    250,000
      FY06 Tax Return & Employee Benefit
         Audit Services                                      0
      Payroll/W2 & 1099 System                               0
      Miscellaneous                                     29,000
Gift Card liabilities                                        0
                                                 -------------
   Total                                             3,659,000
                                                 -------------


DIP financing                                                0
Other LT Liabilities                                         0
Liabilities subject to compromise                  315,047,000
Shareholders' deficit                             (302,035,000)
                                                 -------------       
            
      TOTAL LIABILITIES &
      SHAREHOLDERS' DEFICIT                        $19,511,000
                                                 =============


                     Musicland Holding Corp.
                     Statement of Operations
                  For the Month Ended July 31, 2007


Merchandise revenue                                          0
Non-merchandise revenue                                      0
                                                 -------------  
   Net sales                                                 0

Cost of good sold                                            0
                                                 -------------
   Gross Profit                                              0

Store operating expenses
   Payroll                                                   0
   Occupancy                                                 0
   Other                                               ($1,000)
   Store expenses                                            0
                                                 -------------
General & administrative                                (1,000)
                                                 -------------
EBITDA (Loss)                                           (1,000)

      Chapter 11 & related charges                    (148,000)
      Sale to Transworld                                     0
      Hilco 65                                               0
      Media Play Wind down                                   0
      Depreciation & Amortization                            0
                                                 -------------
         Operating income (Loss)                      (149,000)

      Interest income (expense)                         47,000
      Other non-operating charges                      203,000
                                                 -------------
         Earnings before Taxes                         101,000
                                                 -------------
Income tax                                                   0
                                                 -------------
      Net earnings (Loss)                             $101,000
                                                 =============


                      Musicland Holding Corp.
                      Statement of Cash Flow
                  For the Month Ended July 31, 2007


Operating activities
   Net earnings (Loss)                                $101,000
   Adjustments to reconcile net earnings (loss)
      to net cash provided by (used in)
      operating activities:                                  0
         Loss on utility deposits write off

   Changes in operating assets & liabilities:                0
      Inventory                                              0
      Other current assets                             300,000
      Other Non-current Assets                               0
      Accounts payable                                       0
      Other accrued liabilities                              0
      Liabilities subject to compromise                      0
                                                 -------------
   Net cash provided by (used in)
      operating activities                             401,000
                                                 -------------

Investing activities
   Change in other long term asset/liabilities               0
   Retirement of fixed assets                                0
   Net cash provided by investing activities                 0

Financing activities
   Distribution to Secured Creditors                         0
                                                 -------------
Increase/decrease in cash                              401,000
                                                 -------------
   Cash at the beginning of Period                  12,124,000
                                                 -------------
   Cash at the end of Period                       $12,525,000
                                                 =============

Headquartered in New York, New York, Musicland Holding Corp., is a
specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  At March 31, 2007, the Debtors
disclosed $20,121,000 in total assets and $321,546,000 in total
liabilities.

On May 12, 2006, the Debtors filed their Joint Plan of Liquidation
with the Court.  On Sept. 14, 2006, they filed an amended Plan and
a Second Amended Plan on Oct. 13, 2006.  The Court approved the
adequacy of the Amended Disclosure Statement on Oct. 13, 2006.  
(Musicland Bankruptcy News, Issue No. 37; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)  


PUBLICARD INC: Posts $52,491 Net Loss in July 2007
--------------------------------------------------
For the month ended July 31, 2007, Publicard Inc. incurred a
net loss of $52,491 on zero revenues.

The company's balance sheet as of July 31, 2007, showed total
assets of $125,756 and total liabilities of $403,520 resulting in
a total stockholders deficit of $277,764.

The company's July 31 balance sheet also showed strained liquidity
with $121,726 in total current assets available to pay $313,821 in
total prepetition current liabilities and $89,699 in total
postpetition current liabilities.

A full-text copy of the company's monthly operating report for the  
month ended July 31, 2007, is available for free at:

http://www.sec.gov/Archives/edgar/data/81050/000114420407044794/v0
85386_ex99-2.htm

PubliCARD Inc. is a smart card technology company that provides
products and solutions to facilitate secure access and
transactions.  PubliCARD also licenses smart card reader
technology and the integrated circuit technology within readers.

Headquartered in New York, PubliCARD Inc. fka Publicker Inc. filed
a chapter 11 petition on May 17, 2007 (Bankr. S.D.N.Y. Case No.
07-11517).  David C. McGrail, Esq., at the Law Offices of David C.
McGrail in New York represents the Debtor in its restructuring
efforts.  The company listed assets and debts between $100,000 to
$500,000 when it sought bankruptcy protection.


THAXTON GRP: Posts $21MM Net Loss for Period Ended June 30, 2007
----------------------------------------------------------------
The Thaxton Group and its affiliates incurred a $21,150,876 net
loss on total revenues of $277,788,645 for the period Oct. 17,
2003 thru June 30, 2007.

Thaxton Group's consolidated balance sheet as of June 30, 2007,
showed total assets of $90,189,504 and total liabilities of
$106,571,537 resulting in a total stockholders' deficit of
$16,382,034.

A full-text copy of the company's financial statements for the
period Oct. 17, 2003 thru June 30, 2007, are available for free
at:

http://www.sec.gov/Archives/edgar/data/1001430/000119312507173598/
dex991.htm

The Thaxton Group, Inc., is a diversified financial services
company which specializes in consumer lending, automobile sales &
insurance premium financing.  The Thaxton Group, Inc. and its
debtor-affiliates filed for Chapter 11 protection on Oct. 17, 2003
(Bankr. D. Del. Case Numbers 03-13182 through 03-13213).  Robert
J. Dehney, Esq., and Michael G. Busenkell, Esq., at Morris,
Nichols, Arsht & Tunnell represent the debtors.  When they filed
for bankruptcy, they listed $206,000,000 in total assets and
$242,000,000 in total liabilities.

                              *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com/

On Thursdays, the TCR delivers a list of recently filed chapter 11
cases involving less than $1,000,000 in assets and liabilities
delivered to nation's bankruptcy courts.  The list includes links
to freely downloadable images of these small-dollar petitions in
Acrobat PDF format.

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911.  For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                             *********

S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA.  Marie Therese V. Profetana, Shimero R. Jainga, Ronald C. Sy,
Joel Anthony G. Lopez, Cecil R. Villacampa, Jason A. Nieva,
Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez,
Tara Marie A. Martin, John Paul C. Canonigo, Sheena R. Jusay, and
Peter A. Chapman, Editors.

Copyright 2007.  All rights reserved.  ISSN: 1520-9474.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.  Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.

The TCR subscription rate is $775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same firm
for the term of the initial subscription or balance thereof are
$25 each.  For subscription information, contact Christopher Beard
at 240/629-3300.

                    *** End of Transmission ***