Regina Co. announced that its chairman, Donald...

Regina Co. announced that its chairman, Donald Sheelan, has resigned and said the accounting firm of Peat Marwick Main & Co. has found that Regina’s financial statements for the fiscal year ended June 30 were “materially incorrect.” The company’s stock plunged $3 to $4 a share after the announcement, down from $17 a share last week. Regina, a Rahway, N.J.-based maker of vacuum cleaners, gave no reason for Sheelan’s departure. Less than a week ago Regina suffered a sharp drop in its stock price after it said sales for its fiscal first quarter ending Sept. 30 were expected to be below its previous estimate of $50 million. It now expects to post a loss.