FLEMING TO REVISE RESULTS BY $1 BILLION
ng Cos. here last week said it would revise its previously reported fourth-quarter and annual financial results for 2002 to reflect non-cash charges totaling more than $1 billion. They include a $645 million adjustment for the impairment of goodwill, a $90 million charge to reflect a reduction in the value of its retail operations that are for sale, and a charge of $275 million to $325 million for its deferred-tax assets. The company also said its fourth-quarter pretax loss from continuing operations will be increased by $80 million for several reasons, including the cancellation of its contract with Kmart. As a result of the ongoing investigation of its recognition of vendor rebates, Fleming also will restate its results to reflect a reduction in pretax earnings of not more than $85 million for 2001 and 2002. In addition, the company will apply new rules for accounting for vendor allowances retroactively to the start of 2002, which will result in an expense of not more than $45 million. A spokesman told SN the company did not know when it would be able to file its 2002 10-K annual report, which was originally due March 28.
KMART'S EMERGENCE FROM CHAPTER 11 DELAYED
TROY, Mich. -- Kmart Corp. here said last week it would not meet its April 30 goal to emerge from bankruptcy after some creditors questioned the viability of the company's reorganization plan. Although most creditors favored the plan, certain creditors for some Kmart subsidiaries voted to reject it. Kmart said it does not believe these votes against the plan are material, and it expects to emerge in the first few days of May. The confirmation hearing to seek approval for the reorganization plan started last Monday in U.S. Bankruptcy Court in Chicago but was suspended until this week because of the Passover and Easter holidays. During the proceedings last week, Kmart said it would save $450 million through 2007 by self-distributing groceries in the wake of the cancellation of its supply pact with Fleming.
AHOLD WILL SEEK FILING DELAY AT ANNUAL MEETING
ZAANDAM, Netherlands -- Ahold here said it will hold its annual general meeting in The Hague on May 13 as previously scheduled, even though the company will not have filed its financial statement for fiscal 2002 by that date. Ahold said it will request at the meeting a six-month extension of its current May 29 deadline, even though the company also said it will complete the audited financial statements by June 30, as required under a credit facility announced in February. Other items to be voted on include the appointment of two new directors to the board.
DEMOULAS INTRAFAMILY COURT BATTLE RAGES ON
TEWKSBERRY, Mass. -- The intrafamily court battle for Demoulas Super Markets here has resurfaced in a motion filed earlier this month by the family faction that lost control of the 58-store, privately held company in a 1999 court decision, according to Rudolph Pierce, a Boston attorney representing that group. Pierce said the motion filed in Middlesex Superior Court, Cambridge, Mass., asked to have Judge Maria Lopez recuse herself from the ongoing litigation for control of the company because of remarks she made at a hearing in November. Representatives of the company were not available for comment. Lopez also could not be reached for comment.
ROUNDY'S WILL MOVE HEADQUARTERS TO MILWAUKEE
PEWAUKEE, Wis. -- Roundy's here said last week it will relocate its corporate and division offices into a new building in downtown Milwaukee in the fall. Employees from the corporate office here plus divisions in Wauwatosa and Milwaukee's south side will be consolidated into the new facility, which is expected to be ready for occupancy by Oct. 1.