NATIONAL: Specialty Fashion Group has confirmed it is overhauling risk management systems following losses of $16.7 million to internal fraud.
As reported in Ragtrader, the apparel group had intended to review internal systems and controls after it was rocked by fraudulent dealings spanning five years.
Former head of property Simon Feldman was found to be behind false invoices, totaling approximately $16.7 million. His employment was terminated in May this year.
In an address to shareholders, company chairman Geoffrey Levy said the group had completely reviewed its financial operations with the assistance of auditors. He said it is re-examining its risk management system and implementing a program to ensure problems are identified, assessed and managed.
He said the company had tackled these obstacles with "vigorous resoluteness."
Levy said the discovery of fraud was devastating because it showed the company's trust had been betrayed.
Feldman has been ordered by the courts to repay the misappropriated funds. Specialty Fashion Group has received $5 million in insurance recoveries and is working with forensic accountants to recover the stolen money.
The group runs fashion brands Millers, Autograph, Crossroads, Katies, City Chic and Quuenspark. It has 843 stores and employs over 5000 staff.