CEO Milliken steps down at OfficeMax
By Furniture Today Staff -- Furniture Today, March 14, 2005
Itasca, Ill. — OfficeMax said its president and CEO Christopher Milliken has resigned and that the company continues to investigate accounting problems that will result in restated income for the first three quarters of last year.
The office supply superstore, a Top 25 U.S. furniture retailer with sales of $480 million in the category in 2003, said it learned that some of its employees had "fabricated supporting documents" for about $3.3 million in claims billed to an unidentified vendor. Six employees were fired in connection with the investigation, the company said.
George Harad, executive chairman of the OfficeMax board, was named interim CEO. A board committee is searching for a permanent CEO.
Based on an investigation by its audit committee, OfficeMax estimates it overstated its operating income by $4 million to $6 million for the first three quarters of last year. Operating income from the company's office products businesses is now expected to be in the range of $125 million to $135 million for the full year. The company plans to report 2004 earnings March 14.
