City of Industry, Calif., 99 Cents Only Stores said it might restate earnings and delay its upcoming quarterly report. The chain pointed to a familiar culprit for its restatement: “lease and depreciation issues,” which were cited by dozens of other retailers in recent weeks for similar actions.
Additionally, 99 Cents Only Stores said compliance with the Sarbanes Oxley Act is causing other issues. The company’s independent accountants are unable to complete their audit of management’s assessment of the internal controls over financial reporting, the company said. Further, management has identified material weaknesses as defined by the Public Company Accounting Oversight Board related to deficiencies in the internal-control environment.