Boston Chicken Shares Fall on Auditor Report

Boston Chicken Inc. shares lost more than a third of their value after its independent auditor expressed doubt that the operator of Boston Market restaurants can continue as a going concern. The auditor, Arthur Andersen, expressed its opinion in a Boston Chicken regulatory filing. The report heightened concern that the once-high-flying company may have little choice but to file for Chapter 11 bankruptcy protection, analysts said. However, Boston Chicken spokeswoman Karen Rugen said the company “has absolutely no plans to file for bankruptcy protection.” Boston Chicken said in its filing with the Securities and Exchange Commission that sales and cash flow at its 1,150 restaurants are running below expectations. Boston Chicken shares fell $1.19, or 37%, to close at $2.03 in heavy trading on Nasdaq.