Warnaco Says SEC Charges Possible
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Warnaco Group Inc. said the Securities and Exchange Commission may file charges against the bankrupt maker of Calvin Klein jeans and Speedo swim suits for violating accounting regulations.
An internal probe found accounting errors in Warnaco’s Designer Holdings unit, leading to an earnings restatement, Warnaco said in a regulatory filing.
Warnaco, which ousted Chief Executive Linda Wachner in November, has replaced “certain financial staff” and changed the way it accounts for some purchases.
The SEC informed the company on July 18 that its staff will recommend bringing civil charges against the clothing maker and some employees, said Warnaco, which will rebut the charges.
The company disclosed in April 2001 that the SEC was looking into the company’s “preparation and publication” of various financial statements and reports.
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