Tower’s Restatement Results in Loss
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Tower Records has restated its profit from last fall, shaving about $20 million from its previously reported earnings.
The restatement means Tower’s reported profit for the three months ended Oct. 31 -- its only quarterly profit for the last three years -- now is a narrow loss.
The lower profit stems from the sale of Tower’s Japanese stores last year. In a filing with the Securities and Exchange Commission, the company said it was restating the gain on the sale from $36 million to $15.8 million.
A company official was unavailable to comment on what prompted the restatement. It’s the latest sign of trouble for the West Sacramento, Calif.-based retailer. Earlier this month, Tower defaulted on $110 million in bond debt.
From Associated Press
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