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Ahold rebuked on accounting

Mike Buzalka, Executive Features Editor

May 28, 2004

1 Min Read
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Mike Buzalka

Amsterdam—The European stock exchange Euronext reprimanded Ahold NV today for violating market rules by not sooner disclosing accounting problems that nearly brought the company to bankruptcy last year. Euronext said Ahold, which owns U.S. Foodservice as well as the Stop & Shop and Giant supermarkets in the United States, should have warned the market about a month earlier than it did.

The official reprimand by Ahold's home exchange carries no further punishment and comes more than a year after it admitted it overstated earnings by more than $1 billion in 2000-2002. Ahold dismissed Euronext's warning as based on “an incomplete and incorrect understanding of the facts,” adding that admitting the problems sooner might have threatened its ability to get a loan it needed, according to a company statement.

Most recently, Ahold reported a net profit of $14.4 million on sales of $15.3 billion in the fourth quarter of 2003. It remains under investigation by prosecutors and regulators in both the U.S. and the Netherlands.

About the Author

Mike Buzalka

Executive Features Editor, Food Management

Mike Buzalka is executive features editor for Food Management and contributing editor to Restaurant Hospitality, Supermarket News and Nation’s Restaurant News. On Food Management, Mike has lead responsibility for compiling the annual Top 50 Contract Management Companies as well as the K-12, College, Hospital and Senior Dining Power Players listings. He holds bachelor’s and master’s degrees in English Literature from John Carroll University. Before joining Food Management in 1998, he served as for eight years as assistant editor and then editor of Foodservice Distributor magazine. Mike’s personal interests range from local sports such as the Cleveland Indians and Browns to classic and modern literature, history and politics.

Mike Buzalka’s areas of expertise include operations, innovation and technology topics in onsite foodservice industry markets like K-12 Schools, Higher Education, Healthcare and Business & Industry.

Mike Buzalka’s experience:

Executive Features Editor, Food Management magazine (2010-present)

Contributing Editor, Restaurant Hospitality, Supermarket News and Nation’s Restaurant News (2016-present)

Associate Editor, Food Management magazine (1998-2010)

Editor, Foodservice Distributor magazine (1997-1998)

Assistant Editor, Foodservice Distributor magazine (1989-1997)

 

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