Press Release for Recent Organizational Change at Starbucks, Inc. Our Chief Financial Officer has suddenly resigned and when reviewing his financials that were prepared certain questions arose to his handling of the company’s financials. Ongoing studies are being conducted to conclude if further actions should be taken. This research of our financials have been taken into consideration for some time now, we feel that they have been reported correctly in the amounts just not in the timing. This is throwing off our dividends and our monthly and quarterly reports.
This press release is to notify all of our stockholders, suppliers, and creditors that our company is still stable. We are looking into legal actions to take against our former CFO after a case is built. Our company is still operational and we are working hard to regain the trust that has been broken. We are cooperating with the SEC and will issue another press release within a week of their findings.
Please feel free to contact our hotline with any further questions, 1-866-555-STBK. Danielle Realty CPA, Starbucks, Inc. MEMORANDUM TO:Management FROM:Danielle Realty CPA DATE:July 5, 2010
SUBJECT:PR Communication Memo This memo is sent out to concur with the recent press release that was sent out to our stockholders, creditors and suppliers with our company. The press release was to communicate to them that our company is still strong with the recent resignation of our CFO. Since the SEC has been involved in our company for some months rumors have started to circulate that our former CFO has doctored some of the financials reports. Well this is being looked into we must communicate to our staff, our competitors, our guests and each other that our company is still strong.
There has been a hotline set up with cooperation from the corporate accounting staff to help answer questions that anyone may have in regards to stopping the rumors, avoiding the media’s bad press and calm our stakeholders. The biggest concern that most stakeholders have an interest in is that of their dividends. While it seems that the SEC is finding that the revenue recognition policy has been violated and sales and expenses weren’t reported in the time frame that they occurred, we must express that we are taking every action possible to fix this mistake.
We still have one quarter left till the end of our fiscal year and are hopeful to have this oversight taken care of in the last quarter. One of the findings that the SEC has pointed out is due to the inappropriate behavior of our former CFO; bonuses were paid higher than should have been in the previous quarter. Also dividends were paid double than what they should have been. The former CFO benefited from both as being a stakeholder and getting a bonus. After this occurrence upper management is looking into reconstructing the organizational chart and the duties of the CFO and his office.
The one hardship that has to be communicated very strongly to our stakeholders and our management team is that the payout of the bonuses and higher dividends will result in a lower, if not at all, for this past quarter. The press is our strongest competition right now. Their recent interview with one of our competitors CFO was a little embellished. Our company is not losing money or going bankrupt. We are not closing stores or halting operation. We still have enough money to pay our bills and our staff. Our stores are still profitable and doing well.
It is up to us to stop the rumors that are circulating, communicate to our staff that if anyone from the media comes to question or interview them they are to refer them to our help line number. It is very imperative that no one answers question from the press. Not many understand what is going on with the SEC and the dealings with corporate so stress to them that we don’t want to keep anything secret. It is more a precautionary measure that they redirect calls to our hotline for a more accurate and technical response.
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