CardWorks Will Service Spiegel Private-Label Cards
In other developments, the Chicago Sun-Times reported that Spiegel Inc. lost $679 million during the 2002 fiscal year, "16 percent more red ink" than in 2001. Also, the loss in the first quarter of this fiscal year tripled the amount from last year to $131 million from $43.3 million. The newspaper also said the company filed two financial reports Thursday -- one for fiscal year 2002 and the other for the first quarter of fiscal 2003, and that it received approval from the bankruptcy court to file the reports "without the blessing of its auditor."
KPMG LLP reportedly wants to review a report by an independent examiner appointed by the U.S. District Court in Chicago before it signs off on its books, according to the newspaper, which stated that the examiner's report is due in July. As a result, the troubled giant warned the numbers may need to be adjusted. Also, net sales fell to $414 million in the first quarter of 2003 from $537 million in the year-ago period. For fiscal 2002, sales totaled $2.05 billion compared to $2.97 billion in 2001.