Dutch supermarket admits £317m error
Ahold, the Dutch-based supermarket giant, has admitted that it overstated its profits by at least $500m (£317m).
Link: For more business news
As a consequence, the company said its chief executive and chief financial officer would be leaving, while an investigation into its US food distribution division has begun.
It has also postponed its annual results, which were meant to have been announced on 5 March.
The news send shock waves through the market as Ahold’s share price tumbled 40%.
The trouble is believed to be centred around US Foodservice, Ahold’s distribution service, over the way it accounted for income.
The company is already saddled with massive debt problems fuelled by an aggressive acquisition strategy, which has made merging different accounting practices together difficult.
Ahold is audited by Deloitte & Touche.