Due to an accounting error relating to the buyer’s club programs of three of its catalogs, Edgewater, NJ-based Hanover Direct is restating five years’ worth of financial statements. In a release, Hanover says financial statements going back to Dec. 25, 1999, “should no longer be relied upon and should be restated.”
Hanover says the error resulted in the overstatement of revenue and the omission of the related liability for discount obligations for fiscal periods as early as 1998. The company says that the cumulative impact of this error is being estimated. Hanover also filed a Form 12b-25 Notification of Late Filing with the Securities and Exchange Commission seeking an extension for filing its financial statement for the quarter ended Sept. 25.