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Published on: 2/3/2003
Last Visited: 2/6/2003
Chief Financial Officer James R. Cannataro has resigned, just one day after the struggling retailer's auditor revealed that it has substantial doubts about Spiegel's ability to stay in business.
Mr. Cannataro, 50, will leave next week to become executive vice-president of Nintendo Co.Ltd.'s U.S. unit.An 18-year Spiegel veteran, he insisted his resignation is "totally unrelated" to Spiegel's financial woes.
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Mr. Cannataro recently signed off on Spiegel's annual report, filed Tuesday with the Securities and Exchange Commission, in which a letter from the company's auditor KPMG LLP paints an uncertain picture of the Downers Grove-based retailer's future.
KPMG said Spiegel has not complied with its debt covenants and is past due on "substantially all" of its $1.2 billion in debt covered by those agreements.The company has not been successful in negotiating new agreements with its lenders, the letter said.
"These matters raise substantial doubt about the company's ability to continue as a going concern," KPMG said.
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Spiegel said it has started looking for a replacement for Mr. Cannataro, who served as CFO of Eddie Bauer for five years before moving to Spiegel in 2001.
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