Industry News | October 3, 2002

New World Restaurant Group Calls for Reaudit

Email this story Email this story
Printer-friendly versionPrinter-friendly version

Read More About

New World Restaurant Group announced today that it has asked its new independent auditors, Grant Thornton, LLP, to reaudit its financial statements for the fiscal years ended Dec. 31, 2000 and Jan. 1, 2002. This action follows notification from the company's previous independent auditors, Arthur Andersen, LLP that, due to New World's anticipated material restatements of 2000 and 2001, Andersen's opinion related to the company's 2000 and 2001 financial statements could no longer be relied upon.

As previously announced, the anticipated restatements relate primarily to the accounting treatment of the company's increasing rate indebtedness, preferred stock, and related warrants to purchase stock. The anticipated restatements are expected to primarily involve non-cash components of interest expense, preferred dividends and accretion and earnings per share.

As a result of these actions, the filing of the company's Form 10-Q reports for the second and third quarters of fiscal 2002, as well as the restated, reaudited results for the historical periods, will be delayed until these audits are completed.

New World operates quick-serve concepts primarily under the names Einstein Brothers and Noah’s New York Bagels and franchises the brands Noah’s and Chesapeake Bagel Bakery. The company also operates Manhattan Bagel, New World Coffee, and Willoughbys Coffee & Tea Brands.

News and information presented in this release has not been corroborated by QSR, Food News Media, or Journalistic, Inc.