Ace employee makes $152 million error

Jan. 12, 2008 at 8:33 AM
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OAK BROOK, Ill., Jan. 12 (UPI) -- Illinois-based Ace Hardware plans to restate its earnings for three fiscal years because of a $152 million accounting error made by an employee.

The poorly trained employee, who no longer works for Ace, incorrectly entered accounts in ledgers in the finance department at the co-op's headquarters in Oak Brook, Ill., Ace CEO Ray Griffith told the Chicago Sun-Times.

"We are embarrassed by it," Griffith said. "We did not provide the training, oversight or checks and balances to help that person do (the) job," Griffith said. The employee's "only intent was to try to do the best job for the boss and for our company."

Ace Hardware will restate its earnings for fiscal years 2004, 2005 and 2006, and correct its numbers for fiscal 2007, Griffith said, noting Ace Hardware store owners were informed of the situation Friday after an investigation that cost roughly $10 million.

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