Sept. 6, 2007 - $154 Million Shortfall Halts ACE Conversion Plan
It was previously reported that the Oak Brook,
IL-based retailer would operate as one giant corporation instead of thousands
of independent stores. The discovery of the accounting error in the process of
preparing documents to file with the Securities and Exchange Commission throws
a wrench in the attempt to better compete with big-box rivals Home Depot and
Lowe's.
According to the company, it also means, in order
to fix the shortfall, dealers likely will have to forgo most, if not all, of
their 2007 patronage dividends - an annual payment in the form of cash and
stock tied to Ace's gross profit.