Wayne P. Garten, CEO at Hanover Direct Inc., based in Edgewater, NJ, has been appointed acting chief financial officer until the board of directors appoints a new CFO, following the resignation of Charles E. Blue the former CFO.
Blue’s resignation effective March 8 comes less than one month after Hanover’s Feb. 16 delisting from the American Stock Exchange for failure to file Form 10-Q for the period ending Sept. 24, 2004 and for incurring net losses for the fiscal years ending in December 1999 through 2003, according to the Securities and Exchange Commission.
The amount of net losses claimed by the SEC’s delisting order are as follows: $16.3 million for 1999; $80.8 million, 2000; $5.8 million, 2001; $9.1 million, 2002; and $15.3 million for the fiscal year ending December 2003.
Hanover said it is cooperating with an informal inquiry of the SEC to prepare and reissue financial statements for the fiscal years ending in December from 1999 through 2003. The company said it is also completing its financial statements and Form 10-Q for its most recent fiscal year that ended Dec. 25, 2004.
In a prepared statement, Hanover said it intends to work closely with its outside auditors to finalize these financial statements. It also expects to appoint a new CFO shortly.
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