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OfficeMax Delays Earnings Filing as Internal Investigation Continues
ITASCA, Ill. -- Amid an ongoing internal investigation into issues relating to accounting for vendor income, OfficeMax Inc. will postpone the release of its fourth-quarter and full year 2004 earnings, officials announced earlier today. Also, the company's executive vice president and chief financial officer has resigned after holding the position for two months.Replacing Brian Anderson, who resigned, is former OfficeMax CFO Ted Crumley, who will serve on an interim basis while the company searches for a permanent replacement. "We are disappointed that Brian is leaving after only two months of service. We regret that his commitment to our business was not strong enough to allow him to make a long- term contribution," commented Chris Milliken, president and chief executive officer.The investigation of vendor payments is being conducted under the direction of the audit committee of OfficeMax's board of directors. To date, the company's investigation has confirmed the claims by a vendor to its retail business that certain employees fabricated supporting documentation for approximately $3.3 million in claims billed to the vendor by OfficeMax during 2003 and 2004, Milliken said. As a result of information discovered in the course of its investigation, the company has expanded the scope of its investigation to include a review of the manner in which it recorded rebates and other payments from vendors for fiscal years 2003 and 2004. The issues involved in this aspect of the investigation principally involve the proper timing for the recognition of such payments.The company has terminated four employees, based on the information discovered so far.The company expects to complete its investigation by the third full week of February and to file with the Securities and Exchange Commission Form 10-K for the 2004 fiscal year within the time period prescribed by the SEC. OfficeMax also plans to proceed with its previously announced share repurchases after financial results for 2004 have been reported.Visit OfficeMax Inc.: www.officemax.com"