Deloitte CEO Joe Echevarria and former President Bill Clinton at the Middle Market Perspectives Event in New York.
- Caleb Newquist
- September 5, 2012
Yes, Deloitte is counting on college students being impressed with stories of determination, hope, competition, […]
- Caleb Newquist
- July 29, 2010
So for those of you that aren’t too fashion conscious, you probably don’t the name Dov Charney. He’s the Chairman and CEO of American Apparel and you’d be hard pressed to find something in one of his stores that qualify under your firm’s dress code.
Nevertheless! AA is a publicly traded company and is subje ities laws as everyone else. Last year they opted to drop Marcum as their auditor for Deloitte. One year later, the firm has apparently had all they can stand of AA because they resigned today, citing possibly unreliable financial statements for 2009, sending the company’s stock reeling.
The 8-K has the usual language that you would expect from a typical auditor/client break-up but here are the gory details for those you that enjoy that sort of thing (citations omitted and extra fun stuff is bolded):
During the period from April 3, 2009 through July 22, 2010, there were no “reportable events” except that (i) in Deloitte’s report dated March 31, 2010 (which was included in the 2009 Form 10-K) on the Company’s internal control over financial reporting as of December 31, 2009, Deloitte identified material weaknesses in internal control over financial reporting related to the control environment and to the financial closing and reporting process, which are further described under Item 9A in the Company’s 2009 Form 10-K, and advised that the Company has not maintained effective internal control over financial reporting as of December 31, 2009; and (ii) Deloitte advised the Company that certain information has come to Deloitte’s attention, that if further investigated may materially impact the reliability of either its previously issued audit report or the underlying consolidated financial statements for the year ended December 31, 2009 included in the Company’s 2009 Form 10-K. Deloitte has requested that the Company provide Deloitte with the additional information Deloitte believes is necessary to review before the Company and Deloitte can reach any conclusions as to the reliability of the previously issued consolidated financial statements for the year ended December 31, 2009 and auditors’ report thereon.
As we mentioned, this has spooked plenty of people, including Ed Yruma an analyst at KeyBanc quoted by Bloomberg in a letter to investors, “The company has struggled since its IPO with both its internal controls and its ability to file SEC filings on a timely basis. An ability to file SEC filings on a timely basis has been an ongoing issue.”
Back to the superficial. Dov Charney is, what you might call, a character. Here’s a brief chat we had with Nick, Breaking Media web developer and occasional contributor to our sister site Fashionista:
me: When i say the name
your response is…
Deloitte’s letter to the SEC is brief and makes no mention about the plethora of models not wearing pants or Dov judging the young auditors’ hot or not-ness, so that likely wasn’t part of the problem. Anyhow, AA ran straight back to Marcum who might be more comfortable with, what we imagine to be, an interesting work environment.
American Apparel Falls After Deloitte Resigns as Accountant [Bloomberg BusinessWeek]
- Caleb Newquist
- July 13, 2010
In case you hadn’t heard, Miami has been in the news this week. It is the new home of some rich dude who may or may not be the biggest egomaniac in sports.
HOWEVER! What’s more important is that we read that the decimated real estate situation in downtown Miami – you know, all those luxury condos on one bought – might be turning around and it’s due to, in no small part, to a plethora of Deloitte employees infesting the towers:
Brandon Klein has done what few Floridians can: go weeks without driving his car.
The 26-year-old tax accountant walks three blocks from his condominium tower on Biscayne Bay in Miami to his office at Deloitte LLP. On weekends, he and his friends hang out on the pool deck or share a cab to a local Irish pub.
He lives in Downtown, a neighborhood where young people are renting condos built during the 2004 to 2008 boom to attract second-home buyers. Thanks to the housing crash, Klein and two roommates pay about $900 a month each for an obstructed waterfront view, a wraparound balcony and access to a gym, spa and steam room.
“Five years ago you wouldn’t have kids fresh out of college living in luxury like this,” said Klein, sitting in front of the 24-hour concierge in the three-story lobby of his building at 50 Biscayne Boulevard, coordinating happy-hour plans by text message. His friends are concentrated in nearby Met I, which has 447 luxury units and a steakhouse on the first floor. They refer to the building as “Deloitte Dorm” because it’s home to so many employees of the accounting and consulting firm.
We understand that ‘BergBW has certain journalistic standards that prevent it from explaining the ‘Dorm’ aspect of ‘Deloitte Dorm’ so we’ll be glad to elaborate.
Chances are most of Green Bloods living in the Deloitte Dorm are around Brandon Klein’s age so it’s likely that there is activity going on that you would normally find at a national training. This means people passed out in the lobby, lots of awkward accountant sexual advances and the occasional drop-in by Barry Salzberg or some other “adult” to remind everyone that they are representing Deloitte.
In any case, if there’s a ‘Deloitte Dorm,’ then there are certainly other Big 4 buildings in the area which is a pretty sickening thought.
Miami’s Downtown Comes Alive as Condos Fill With Young Renters [Bloomberg BusinessWeek]