Bassett Furniture to restate earnings
Will report larger loss for quarter ended Feb. 28
Larry Thomas -- Furniture Today, August 20, 2009
BASSETT, Va. — Bassett Furniture Inds. said Thursday it will restate its earnings for the quarter ended Feb. 28 to show a larger net loss.
The company, which originally reported a loss of $8.7 million, said the restatement will increase the loss to $12 million and cause the company to violate the net worth covenant of its revolving credit facility.
The larger loss is due to changes in accounting policies that resulted in larger reserves and valuation adjustments in some long-term notes receivable, the company said. The accounting policies were changed after the Securities and Exchange Commission raised questions during a routine accounting review.
Bassett said it will file an amended Form 10-Q with the SEC within the next week.
In the meantime, the company said it is in negotiations with its lenders to obtain a waiver of the covenant violation or an amendment to the covenant. Those talks should be completed by the end of August.
Bassett also said it expects to announce earnings for the quarter ended May 30 by the end of August. Earlier, the company said it expects to report sales of about $57.7 million for the quarter, a decline of about 23% from the same period in 2008.
"We believe that we have resolved the main accounting and reporting issues, and we expect to have a final resolution next month after we file our official response to the last comment letter from the SEC," said J. Michael Daniel, interim chief financial officer.
-
Bassett to restate earnings, show bigger loss
Aug 24, 2009
VIEW ALL GALLERIES
