Ace Hardware Discovers $154M Accounting Shortfall
Chicago, Ace Hardware Corp. discovered an approximate $154 million shortfall on its books while preparing to convert from retailer-owned cooperative to for-profit corporation, and likely will have to restate its financial results for the last five years, president and CEO Ray Griffith said Wednesday.
Ace has called off the conversion plan and hired an audit consulting firm to help rectify an accounting problem that appears to date to 2002, Griffith told The Associated Press. The company may have to forego returning profits to store owners this year as a result, he said.
“There is no missing money, there is no missing inventory, there is no evidence of theft,” Griffith said in a telephone interview with the Associated Press. “Obviously we’re upset, but we feel very confident that it’s a manageable situation and that our business is sound. We’re still a very viable business, our comp sales are doing well. This is an accounting issue.”
Treff joins Payless as chief administrator
TOPEKA, Kan. Collective Brands announced today that it has hired Douglas Treff as evp and chief administrative officer for the company and its Payless ShoeSource unit. Treff will report to Matt Rubel, ceo and president of Collective Brands, and ceo and president of Payless.
Treff will be responsible for the finance, store development and information technology functions for Payless. The global sourcing and supply chain, merchandising, marketing, retail operations, law and human resources teams for Payless and Collective Brands will continue to report to Rubel. Treff will start in his new role early this month.
Most recently Treff served as evp and chief administrative officer for Sears Canada. From 2000 to 2006, he served as senior vp and cfo for Deluxe Corp. He served as cfo and in other leadership roles in finance from 1990 to 2000 for Wilsons The Leather Experts.
BJ’s August sales up 6.4%
NATICK, Mass. BJ’s Wholesale Club today reported that sales for August 2007 increased by 6.4% to $661.7 million from $622.2 million in August 2006. On a comparable-club basis, August sales increased by 1.4%, including a negative impact of 2.4% from sales of gasoline and a negative impact of 0.4% from the absence of pharmacy sales versus last year. In 2006, the company reported a comparable-club sales increase of 2.3% for August, including a contribution from sales of gasoline of 1.2%.
For the 30-week period ended Sept. 1 total sales increased by 7.3% and comparable-club sales increased by 2.8%, including a contribution from sales of gasoline of 0.6% and a negative impact from the absence of pharmacy sales versus last year of 0.4%.