Macy's loses $154 million? How did nobody notice?

[fuzzybuddy]

Some employee hid $154,000,000 in loses from Macy's department Store. And the store just found out about this?
This isn't somebody stealing a couple of pens; but, to me, a 154 mill. is a good hunk of change. And nobody noticed?
https://www.cnn.com/2024/11/25/business/macys-accounting-expenses-earnings/index.html

 

[Aunt Bea]

It would take a pretty big shopping bag to hide that much money.

 

[WhatInThe]

The accountants are supposed to be 'accounting' for it. It was picked up in a review or audit. But this went on for a while. It wasn't theft but mis representing the company's financial condition.

Sounds like some wink wink for an earnings report press release and/or probably bonuses.

 

[jujube]

I'm sure many were in on it, but they need a scapegoat to pillory before the public and he or she is it.

 

[911]

Is this just one store or is it the entire corporation? I would hope it's the entire corporation, but if it's only one store, I would be very suspicious that it wasn't all just merchandise that was stolen.

 

[WhatInThe]

Is this just one store or is it the entire corporation? I would hope it's the entire corporation, but if it's only one store, I would be very suspicious that it wasn't all just merchandise that was stolen.

They say unreported delivery charges. It sounds like someone was trying to make the balance sheet look better for stock purposes.

 

[911]

They say unreported delivery charges. It sounds like someone was trying to make the balance sheet look better for stock purposes.

How does one overlook $154,000,000? Unreported delivery charges. I can't imagine a store the size of Macy's having that kind of an expenditure, or at least, not that large of an amount.

I wonder if that will effect them sponsoring the parade? That would be a shame to see an American Icon like that go down the drain.

 

[OneEyedDiva]

From what I saw, they don't think the (former) employee took the money and they can't (yet) explain how it happened. They made so much in shipping that this "drop in the bucket" wasn't missed for awhile?? According to an internet find (saw the same figure on an ABC news report)....

"During this time, the retailer said it recognized $4.36 billion of delivery expenses and added there is "no indication that the erroneous accounting accrual entries" impacted Macy's cash management or payments to vendors. The employee is no longer with Macy's and the investigation has found that no other employees were involved, according to the company."