SEC LAUNCHES FORMAL INVESTIGATION OF FLEMING ACCOUNTING

DALLAS -- Fleming Cos. here last week detailed the implications of the termination of its supply agreement with Kmart, but the wholesaler could not clear the cloud of uncertainty created by a stepped-up probe of its accounting practices by the Securities and Exchange Commission.The company said the SEC has elevated its previously reported informal inquiry into the way Fleming accounted for vendor

DALLAS -- Fleming Cos. here last week detailed the implications of the termination of its supply agreement with Kmart, but the wholesaler could not clear the cloud of uncertainty created by a stepped-up probe of its accounting practices by the Securities and Exchange Commission.

The company said the SEC has elevated its previously reported informal inquiry into the way Fleming accounted for vendor allowances, drop-ship deliveries and same-store sales to a formal investigation.

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