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MINNEAPOLIS -- National food distributor Nash Finch Co. said last week it will take a charge to pre-tax earnings in the second quarter of 2006 based on actions taken against a longtime customer by another creditor. The company estimates that the charge will be in the range of $6.0 million to $8.5 million.
Nash Finch said the charge reflects the impairment of retail properties leased to the customer, which it didn't name, and additional bad debt expense related to accounts and notes receivable owed by this customer. Approximately $1.1 million of the charge will involve future expenditures of cash. The customer had represented approximately $20 million in fiscal 2005 sales to Nash Finch.