Nash Finch Co. announced last Friday that what it termed "material adverse consequences" - such as breaches of loan covenants, liquidity issues and the delisting of the company's securities from the NASDAQ - could take place if the US Securities and Exchange Commission (SEC) Office of the Chief Accountant (OCA) rules that it improperly accounted for "count-recount" charges assessed to its vendors.
Delisting will occur if Nash Finch doesn't report its third quarter earnings by March 19. They were supposed to have been reported last October.
The company's auditors, Deloitte & Touche LLP, resigned Jan. 28, and has not yet been replaced. The auditor had only worked for Nash Finch for six months, and quit over the company's unwillingness to provide what it termed "sufficient evidence" that its accounting practices were appropriate.
Delisting will occur if Nash Finch doesn't report its third quarter earnings by March 19. They were supposed to have been reported last October.
The company's auditors, Deloitte & Touche LLP, resigned Jan. 28, and has not yet been replaced. The auditor had only worked for Nash Finch for six months, and quit over the company's unwillingness to provide what it termed "sufficient evidence" that its accounting practices were appropriate.
- KC's View:
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"Material adverse consequences." That's MBA-speak for "your worst nightmare."
Be nice, wouldn't it, if these guys actually spoke English. It's like, if you don’t speak plain English, how can you run a business in a realistic, credible way?
In fact, maybe that's a truism. Companies that use phrases like "material adverse consequences" are almost always doomed to experience them.
A new mantra for the Content Guy…
(The list is getting longer. We'll have to make up a T-shirt…)
