Southwest Supermarket BK Rip Off Phoenix AZ
Something occurred to me today as I was reading an article about Enron and Arthur Anderson. Several companies that did or currently do business with Arthur Anderson are scrutinizing that relationship in the wake of the Enron debacle, and with good reason it seems.
As more and more information is released, more and more suspicions and accusations arise. It leaves one wondering just how far reaching the apparent unethical practices of Anderson went.
The collapse of Southwest Supermarkets was not a surprise to many people. The writing was on the wall for months, yet Southwest managed somehow to secure additional funding for the purchase of the former ABCO stores. If a company's profits have been in steady decline for months, what would compel a lender to ignore that and supply a line of credit anyway?
Doesn't that seem a little strange to you? Well maybe,... or maybe not if you take into consideration that Arthur Anderson are the auditors and the fact that the CFO of Southwest Supermarkets is a former Anderson employee.
The scenario is similar but on a smaller scale. Many employees lost their jobs, and the executives made off with nice severance packages and who knows what else since the executives were supposedly "share holders" in the company. It would be interesting to know who the auditors are for Kohlberg and Company, the parent company of Southwest.
Joe
Phoenix, Arizona
One of many Victims
1 Updates & Rebuttals
Kathy
Phoenix,Arizona,
I thought the same thing when I first heard about Enron & Anderson
#2UPDATE EX-employee responds
Tue, June 04, 2002
Hi Joe-I think the downfall of Southwest was intentional on the part of the CFO, the controller and a few other interested parties. The auditor was busy closing on her house during the last audit, didn't spend a whole lot of time looking at the books. And funny how the entire audit went through the controller, so the accountants had no contact with the auditors. The whole thing was criminally unprofessional.
Another thing, they brought in new accountants knowing that the business was doomed. Then they let the accountants with more experience go first, as if they deliberately did not want anyone there who actually knew anything. Very, very dirty.