OfficeMax CFO Quits as Probe Continues
OfficeMax Inc. announced the resignation of its new chief financial officer Wednesday and said its fourth-quarter earnings report would be delayed because of accounting problems, compounding recent financial turmoil at the nation’s No. 3 office products retailer.
The latest dose of bad news sent shares in the company down $1.42, or 5%, to $28.88 on the New York Stock Exchange -- 24% off the 52-week high of $38.01 reached in June.
The company declined to cite a reason for the departure of Brian Anderson, who had held the job since only November. But the resignation came as it fired four employees as a result of a continuing internal investigation that it said confirmed a vendor’s complaint that some bills were falsified.
OfficeMax, which disclosed the investigation last month, said employees fabricated supporting documentation for about $3.3 million in claims billed to the company in 2003-04. It said the review had been expanded to look at other payments and might last until late February, when it now intends to issue fourth-quarter and full-year earnings that were originally scheduled for release Jan. 20.
Former CFO Ted Crumley is returning to the post on an interim basis while OfficeMax seeks a permanent replacement.
Anderson, who was ousted as finance chief at Baxter International Inc. in June in a management shakeup, would have been required to certify OfficeMax’s financial statements for the year under the Sarbanes-Oxley Act, which holds CFOs and chief executives criminally liable for inaccuracies.
Attempts to reach Anderson for comment were unsuccessful.
President and CEO Chris Milliken expressed disappointment in Anderson’s resignation.
“We regret that his commitment to our business was not strong enough to allow him to make a long-term contribution,” he said.
Three weeks ago, OfficeMax announced the investigation into a vendor’s allegations that some employees demanded promotional payments and falsified documents. The next day, the company reduced its forecast for fiscal 2004 operating income, citing poor holiday sales. Last week, OfficeMax announced the resignation of Gary Peterson, president of its retail division.
