OfficeMax CEO Resigns While Accounting Probe Claims 6 JobsOfficeMax Inc. reported yesterday that president/CEO Christopher C. Milliken has resigned and six employees were fired in connection with an investigation into its accounting practices. Also, the company expects to restate its quarterly income for each of the first three fiscal quarters of 2004.
OfficeMax, Itasca, IL, gave no reason for Milliken's departure. The board of directors appointed executive chairman George J. Harad interim CEO while it searches for a permanent replacement for Milliken.
OfficeMax previously announced that it is investigating its accounting for vendor income. It has been confirmed that certain employees fabricated supporting documents for about $3.3 million in claims billed to a vendor. Also, certain rebates and other payments from vendors in 2004 were not recorded in the appropriate accounting periods. As a result, operating income was overstated in the first fiscal quarter by $5 million to $10 million and understated in the second and third fiscal quarters.
Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters