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DALLAS -- Fleming Cos. Inc. yesterday said the Ft. Worth, Texas staff of the Securities and Exchange Commission (SEC) launched an informal inquiry into the company's operations and accounting practices.
According to the FTC, the focus of the preliminary fact finding inquiry is reportedly centered around Fleming's vendor trade practices, the presentation of second quarter 2001 adjusted earnings per share data in Fleming's second quarter 2001 and 2002 earnings press releases, the company's accounting for drop-ship sales transactions with an unaffiliated vendor in Fleming's discontinued retail operations and the company's calculation of comparable store sales in its discontinued retail operations.
Calls to the FTC's Ft. Worth office for comment were not returned.
"We will, of course, cooperate fully with the informal inquiry and will provide the staff with all the information it needs in responding to its fact- finding," said Mark Hansen, chairman and chief executive of the Dallas-based distributor.