Timothy McLaughlin, Eddie Bauer

''Outdoor lifestyle'' retailer reports accounting errors; finance chief out the door, too.
Lisa YoonJanuary 13, 2006

On Thursday, Eddie Bauer Holdings Inc. announced the departure of chief financial officer Timothy McLaughlin.

The Redmond, Washington-based ”outdoor lifestyle” retailer gave no reason for the exit; nor did it specify whether McLaughlin resigned or was terminated. Calls to the company requesting more details were not returned.

McLaughlin had been senior vice president and chief financial officer since March 2005. Previously, he served as vice president and corporate controller at AT&T Wireless Services Inc. His experience also includes finance positions at Sybios Logic, NCR Corp., and Union Carbide Corp.

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The company has retained search firm Spencer Stuart to find his replacement. In the meantime, David Taylor, senior managing director of FTI Palladium Partners, is serving as interim CFO. Taylor was most recently the finance chief of textile manufacturer Guilford Mills Inc.

In the same news release, the company also announced that it found errors in its Form 10 Registration Statement filed with the Securities and Exchange Commission on December 15, 2005.

The Form 10 contains errors in the balance sheets and cash-flow statements, most of which concern lease accounting during 2004. The Form 10 also contains an error in the cash-flow statement for the quarter ending October 1, 2005. The amortization of the fresh start step-up on fixed assets, roughly $1 million, was booked as a reduction to capital expenditures instead of a depreciation expense.

According to Eddie Bauer, the errors will not affect reported net earnings, net cash flows, or shareholders’ equity.

The Form 10 was submitted as part of the company’s effort to be delisted from Nasdaq, company spokeswoman Lisa Erickson told the Associated Press.

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