Auditors Edit Eddie Bauer Docs

by MR Magazine Staff Apr 18, 2007

NEW YORK – The independent auditors of Eddie Bauer Holdings on Tuesday removed a cautionary note about the retailer’s ability to remain a “going concern” following a debt refinancing.

The refinancing was completed on April 4 and revised financial statements for the fiscal year ended Dec. 31 were filed with the Securities and Exchange Commission Tuesday. Bauer’s auditor is BDO Seidman.

Auditors routinely express concerns about a company’s ability to function as a “going concern” when there are questions about its viability over the course of the coming year.

Eddie Bauer, once a part of the bankrupt Spiegel Group, has been out of bankruptcy since June 2005. However, shareholders in February rejected a $286 million takeover bid from Sun Capital Partners and Golden Gate Capital.

Fabian Mansson resigned as chief executive officer of the company following rejection of the offer. Howard Gross is the interim CEO and Spencer Stuart is leading the search for a permanent successor.