Nash Finch Says SEC Probe Underway

WASHINGTON - Wholesale food distributor Nash Finch Co. on Wednesday said the Securities and Exchange Commission has begun a formal investigation of its accounting practices.

Nash Finch also said its auditor, Deloitte & Touche LLP, resigned Jan. 28. The auditor reported no disagreements, but said that because of its resignation, it had been unable to investigate matters that "if further investigated may materially impact a previously issued audit report."

Minneapolis-based Nash Finch had previously reported an informal probe by the SEC into its handling of promotional allowances from vendors.

In an SEC filing Wednesday, Nash Finch said the informal probe began Oct. 9 and involved charges assessed to the company's vendors.

The charges had been recognized as a reduction in the cost of sales during the billed period, the filing said.

Nash Finch appointed Deloitte & Touch as its independent accountant in July, but said that Deloitte hasn't reviewed, audited or rendered any report on any financial statements of the company.

The company supplies produce, dairy products, meat, frozen foods and other goods to more than 1,500 supermarkets and about 100 military bases.
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