Eddie Bauer Identifies Accounting Errors

Redmond, Wash., Newly emerged from bankruptcy, Eddie Bauer Holdings has identified errors in its balance sheets and cash-flow statements. The company has issued a statement saying that the errors will be corrected, but that they will not have an effect on net cash flows.

The company also announced the departure of CFO Timothy McLaughlin, who has been replaced in the interim by David Taylor, effective immediately.

The financial understatements are related to lease accounting.