Nash Finch Seeks SEC OK for Accounting Method
MINNEAPOLIS - Nash Finch Co. on Friday said it may face liquidity issues if the U.S. Securities and Exchange Commission does not agree with how it accounted for certain vendor charges.
The company, whose shares lost half their value on Wednesday after it said the SEC was investigating the vendor charges, said it had written to the SEC's Office of the Chief Accountant, asking it to concur with the company's conclusion that the vendor charges were properly accounted for.
Nash Finch said it had not yet hired a new accounting firm to replace Deloitte & Touche, who resigned, effective Jan. 28.
If the SEC does not accept the accounting method and Nash Finch can't hire a new accountant quickly enough, it may result in "material adverse consequences" including breaches of loan covenants, liquidity issues and the delisting of its stock, the company said in a statement.
The company, whose shares lost half their value on Wednesday after it said the SEC was investigating the vendor charges, said it had written to the SEC's Office of the Chief Accountant, asking it to concur with the company's conclusion that the vendor charges were properly accounted for.
Nash Finch said it had not yet hired a new accounting firm to replace Deloitte & Touche, who resigned, effective Jan. 28.
If the SEC does not accept the accounting method and Nash Finch can't hire a new accountant quickly enough, it may result in "material adverse consequences" including breaches of loan covenants, liquidity issues and the delisting of its stock, the company said in a statement.