VideoThe SEC also claims that Spiegel's auditor later provided a proposed auditor report stating that the audit firm had "substantial doubts" about Spiegel's ability to continue as a going concern if the company didn't address certain financial issues.
The commission also alleges that Spiegel chose not to make its required 10-K and 10-Q filings to conceal the "going concern" issue from the public.
"Instead, the company filed a series of Forms NT (notices of late filing) indicating that Spiegel was not in a position to file because various lending agreements were not in place," the SEC noted.
According to the complaint, statements made by Spiegel executives confirm that Spiegel management chose not to make its required filings to avoid disclosing the going concern notice -- and to avoid the "disruptions" that the disclosure of this information would cause.
The complaint also alleges that Spiegel failed to disclose its auditor's "going concern" notice in various press releases and public statements that discussed the company's financial condition.
Ahold Receives Letter From Deloitte
Koninklijke Ahold N.V. said it received a letter from Deloitte & Touche on Feb. 24 stating that the embattled supermarket giant's independent auditor no longer maintains its auditors' opinions in connection with the financial statements for 2000 and 2001.
Ahold said in an SEC filing that D&T filed its letter with the Amsterdam Chamber of Commerce on March 5, 2003.
The "notification" referred to in the D&T letter: Ahold's press release dated February 24, 2003 announcing that the company will be required to restate its fiscal years 2000 and 2001 financial statements.
D&T said its opinions regarding the company's 2000 and 2001 financial statements should no longer be relied upon, according to Ahold.
(To find out what former Ahold finance chief Michael Meurs said about the company's acquisitions in an interview conducted in 2001, read "What Meurs Told CFO.")
Hiring Managers Upbeat
How high will the unemployment tide rise?
On Friday, the Labor Department reported that the jobless rate jumped to 5.8 percent, as companies cut an unexpected 300,000 jobs in February. That was the biggest drop in hiring since the aftermath of the Sept. 11 terrorist attacks.
In a survey completed just a few days prior to this announcement, however, more than half of hiring managers said they plan to hire new employees in 2003, according to CareerBuilder.
Of those who planned to hire, 13 percent expected to add 100 employees or more, while 48 percent expected to hire 10 employees or fewer.
The top three reasons given for hiring new employees: to increase productivity and the numbers of customers served, improve customer service, and improve efficiency.
"Companies are adjusting their staffing levels to meet market demands and deliver organizational objectives," said Eric Lochner, vice president of corporate marketing for CareerBuilder. "With these goals in mind, hiring managers continue to be highly selective in the recruitment process to fill open positions with the best candidates."
More than two-thirds of hiring managers said they anticipate filling open positions in 30 days or fewer with one-third of these managers expecting to fill open positions in 14 days or fewer.
On the other hand, eight percent of hiring managers said the process is expected to take three months or longer.
Short Takes
- Michael T. Chalifoux said he will retire as Circuit City's executive vice president, chief financial officer and corporate secretary. He joined Circuit City 20 years ago as corporate controller, when the company was still known as Wards Co.
The company said short-term personal health issues "have driven his desire to retire at this time."
Circuit City also reported that fourth quarter and year-end sales fell 5 percent while same-store sales increased 4 percent for the fiscal year.
- Morgan Stanley Chairman and Chief Executive Officer Philip Purcell and Chief Operating Officer Robert Scott posted a message on the company's internal Internet site March 6 calling on employees who own stock to vote for the four directors up for reelection at the investment bank's April 11 shareholder meeting.
The feeling among some corporate governance experts is that the investment bank is trying to head off an attempt to require the annual election of board members. Last year, a majority of shareholders supported a non-binding resolution to eliminate so-called staggered terms for directors, meaning they want all directors to be voted upon in the same year.
- U.S. junk bond mutual funds took in $1.33 billion of net cash in the latest week, the fourth-largest inflow on record, according to AMG Data Service.
Junk bonds are clearly the top-performing fixed-income asset this year, posting a total return of 5.03 percent, according to Merrill Lynch. Treasuries have gained just 1.62 percent and investment-grade bonds 2.7 percent.
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