In re: Service Merchandise Company, Inc., Service Merchandise Company, Inc., SMC-HC, Inc., SMC-SPE-1, Inc., SMC-SPE-2, Inc., Service Merchandise Company of Tennessee, Ltd. Partnership, Service Merchandise Company of Texas, Ltd. Partnership, A.F.S. Marketing Services, Inc., B.A. Pargh Company, Inc., Service Merchandise RM, Inc., McNally Supply Company, Promotables, Inc., Service Merchandise Financial Company, Inc., Service Merchandise Company Broad, Inc., Service Merchandise Company No. 30, Inc., Service Merchandise Company No. 34, Inc., Service Merchandise Company No. 35, Inc., Service Merchandise Company No. 93, Inc., Service Merchandise Company of Iowa, Inc., Service Merchandise Company of Kansas, Inc., Service Merchandise Company of New York, Inc., Service Merchandise Office Supply, Inc., Service Merchandise Showrooms, Inc., Toy Store, Inc. (The), Travel Management Consultants, Inc., Wholesale Supply Company, Inc., SMC Aviation, Inc., Homeowners Warehouse, Inc., Service Merchandise Company No. 51, Inc., Service Merchandise Indiana Partners, H.J. Wilson Company, Inc., H.J. Wilson Company Realty, Inc., Service Merchandise Company No. 99, Inc.

Case Nos. 399-02288, 399-02649, 399-02650, 399-02651, 399-02652, 399-02653, 399-02654, 399-02655, 399-02656, 399-02657, 399-02658, 399-02659, 399-02660, 399-02661, 399-02662, 399-02663, 399-02664, 399-02665, 399-02666, 399-02667, 399-02668, 399-02669, 399-02670, 399-02671, 399-02672, 399-02673, 399-02674, 399-02675, 399-02676, 399-02677, 399-02678, 399-02679, 399-02680United States Bankruptcy Court, M.D. Tennessee, Nashville Division
March 27, 1999

ORDER CONSOLIDATING SERVICE MERCHANDISE COMPANY, INC.’S INVOLUNTARY CASE INTO VOLUNTARY CASE PURSUANT TO BANKRUPTCY RULE 1015 (a) AND DIRECTING JOINT ADMINISTRATION OF CASES PURSUANT TO BANKRUPTCY RULE 1015 (b)
GEORGE C. PAINE II, Chief United States Bankruptcy Judge

Upon the application dated March 27, 1999 (the “Application”[1] ), of Service Merchandise Company, Inc. (“Service Merchandise”) and 31 of its affiliates (the “Affiliate Debtors”), debtors and debtors-in-possession in the above-captioned cases (Service Merchandise and the Affiliate Debtors collectively, the “Debtors”), for an order (i) directing consolidation of Service Merchandise’s involuntary case (the “Service Merchandise Involuntary Case”) into the Service Merchandise voluntary case (the “Service Merchandise Voluntary Case”) pursuant to Bankruptcy Rule 1015 (a) and (ii) directing joint administration of cases pursuant to Bankruptcy Rule 1015 (b) administratively consolidating the Service Merchandise Voluntary Case with the respective chapter 11 cases of the Affiliated Debtors for procedural purposes only pursuant to Bankruptcy Rule 1015 (b); and upon the Affidavit of Sam Cusano in Support of Chapter 11 Petitions and First Day Orders sworn to on March 26, 1999; and this Court having determined that requested consolidation and joint administration of these chapter 11 cases is in the best interests of the Debtors, their respective estates, creditors and shareholders; and it further appearing that proper and adequate notice has been given and that no other or further notice is necessary; and upon the record herein; and after due deliberation thereon; and good and sufficient cause appearing therefor; it is hereby

ORDERED, ADJUDGED AND DECREED THAT:

1. The Service Merchandise Involuntary Case be, and hereby is, consolidated into the Service Merchandise Voluntary Case with the Service Merchandise Voluntary Case as the surviving case. The commencement date of such consolidated chapter 11 case shall remain March 15, 1999.

2. A docket entry shall be made in the Service Merchandise Voluntary Case and the Service Merchandise Involuntary case substantially as follows:

An order has been entered in this case directing the consolidation of the Service Merchandise Company, Inc. involuntary chapter 11 case into the Service Merchandise Company, Inc. voluntary chapter 11 case.

3. The Service Merchandise Voluntary Case and each of the above-captioned chapter 11 cases of the Affiliated Debtors be, and hereby are, consolidated for procedural purposes only and shall be jointly administered by the Court.

4. The caption of the jointly administered cases shall read as follows:

IN THE UNITED STATES BANKRUPTCY COURT FOR THE MIDDLE DISTRICT OF TENNESSEE NASHVILLE DIVISION
In re: ) Case No._______ SERVICE MERCHANDISE COMPANY, ) INC., et al., ) Chapter 11 )
) Judge Paine Debtors. ) ) Jointly Administered )

5. A docket entry shall be made in each of the Debtors’ cases substantially as follows:

An order has been entered in this case directing the procedural consolidation and joint administration of the chapter 11 cases of Service Merchandise Company, Inc., SMC-HC, Inc., SMC-SPE-1, Inc., SMC-SPE-2, Inc., Service Merchandise Company of Tennessee, Ltd. Partnership, Service Merchandise Company of Texas, Ltd. Partnership, A.F.S. Marketing Services, Inc., B.A. Pargh Company, Inc., Service Merchandise RM, Inc., McNally Supply Company, Promotables, Inc., Service Merchandise Financial Company, Inc., Service Merchandise Company Broad, Inc., Service Merchandise Company No. 30, Inc., Service Merchandise Company No. 34, Inc., Service Merchandise Company No. 35, Inc., Service Merchandise Company No. 93, Inc., Service Merchandise Company of Iowa, Inc., Service Merchandise Company of Kansas, Inc., Service Merchandise Company of New York, Inc., Service Merchandise Office Supply, Inc., Service Merchandise Showrooms, Inc., The Toy Store, Inc., Travel Management Consultants, Inc., Whole-sale Supply Company, Inc., SMC Aviation, Inc., Homeowners Warehouse, Inc. Service Merchandise Company No. 51, Inc., Service Merchandise Indiana Partners, H.J. Wilson Company, Inc., H.J. Wilson Company Realty, Inc., and Service Merchandise Company No. 99, Inc. and the docket in case no. 99-02649() should be consulted for all matters affecting this case.

[1] Capitalized terms used but not defined herein shall have the meaning ascribed to such term in the application related hereto.