Fleming Sheds 37% on News of Charge, SEC Probe
Fleming (FLM) said Tuesday that it will record a pretax charge of $290 million related to cost reductions.
The food distributor also said it is cutting 1,800 jobs, and that the Securities and Exchange Commission has upgraded its inquiry into the company's accounting practices to a formal probe. Fleming said it hired PriceWaterhouseCoopers to assist in its own investigation, and added that it is cooperating fully with the SEC.
Fleming shares closed down 37.7% at $1.85.
Fleming said will close operations at two divisions currently managed by third-party operators -- in South Brunswick, N.J., and in Fort Wayne, Ind. The divisions had been dedicated to supplying Kmart and will close soon after deliveries to Kmart stores conclude in early March.Fleming also said it will consolidate the business of two other divisions into other Fleming divisions.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV