any news, page-3

There's been news, but it keeps getting worse. Now it appears that inventory worth $14m on the account books was actually only worth $1m. Big Nick will have to think of something quick, ASIC should be onto him soon.

Sam’s Seafood closes outlets

243 words
20 May 2005
Foodweek
English
© 2005 Octomedia Pty Ltd. All Rights Reserved.

Sam’s Seafood has closed its 13 takeaway outlets and two Queensland restaurants as a result of the company’s receivership.

Deloitte, the administrator handling the receivership, has also placed the company on the market.

Advertisements in metropolitan daily newspapers are asking for expressions of interest by the close of business today.

John Greig of Deloitte said his initial investigation of the business had uncovered significant stock shortfalls which had compromised his ability to trade the business in the short term.

“We continue to operated Sam’s fresh seafood retail stores and wholesale operations, and have received strong support from suppliers and employees.

“There appears to have been a significant overstatement in the carrying of stock for some time in the accounts of Sam’s Seafood Hamilton, a subsidiary of the listed Sam’s Seafood Holdings.”

Stock on hand in the December and March management accounts had a carrying value of $14.6 million and $14.1 million respectively, but a full stocktake found actual stock on hand was only $1 million.

Greig said the inaccuracies appeared to be related to accounting errors and has therefore been referred to the Australian Securities & Investments Commission.

“As a result of the stock shortfall and store closures, we are seeking to sell the Sam’s business as quickly as possible, which is in the best interests of all stakeholders,” he said.

Deloitte has already received several expressions of interest. FOODweek