Heads Roll After Saks Investigation

$20 Million Improperly Collected

By Staff -- Home Textiles Today, 5/16/2005 12:00:00 AM

Birmingham, Ala. —

Saks Incorporated has asked a number of its senior executives to resign after the company completed its internal investigation into improper vendor markdown allowances, which took place from 1999-2003.

Specifically, Donald Watros, chief administrative officer of Saks Fifth Avenue (SAFE); Brian Martin, general counsel at the time of the 2002 investigation and currently a senior vice president with responsibility for real estate matters; and Donald Wright, chief accounting officer, have all been asked to resign.

The investigation found approximately $20 million was improperly collected from vendors which SAFE will “reimburse or otherwise compensate,” the company stated.

SAFE now expects to file its Form 10-K — originally due on April 14 — on or before Sept. 1.