Eddie Bauer files form 10 withdrawal request to SEC
26 Jan '06
2 min read
Outdoor apparel retailer Eddie Bauer Holdings Inc has informed it has filed a request with the US Securities and Exchange Commission (SEC) to withdraw its Form 10 Registration Statement filed on December 15, 2005.
The company filed its withdrawal request in order to allow it to complete a review of the financial statements contained in the Form 10 Registration Statement and a full review of the procedures used in their preparation.
On January 12th 2006, the company reported in a press release that it had discovered errors in the financial statements included in the company's Form 10 Registration Statement. That announcement indicated that the company did not expect the errors to impact net earnings for any fiscal period presented.
The company has now determined through its ongoing review that the lease accounting revisions were incorrectly described in the press release and will likely impact net earnings for the quarter ended October 1, 2005 and future periods.
The company expects that the correction to the balance sheets as of July 2, 2005 and October 1, 2005 will impact fixed assets and goodwill and, as a result, depreciation expense for the quarter ended October 1, 2005 will increase.
The company has also discovered that its balance sheets as of July 2, 2005 and October 1, 2005 contained an understatement of non-current liabilities (pension and other post-retirement liabilities) arising from an incorrect application of freshstart accounting principles. It is in the process of refining its estimate of the impact on assets and non-current liabilities, but expects such impact to be less than $3 million.
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