German Prosecutor Arrests Four Former Schieder Moebel Managers
Four former managers of Schieder Moebel Holding GmbH, Europe?s biggest furniture manufacturer which averted insolvency in April, were arrested yesterday on suspicion of manipulating the company?s balance sheets to obtain bank loans, Bloomberg News reported today. In April, Schieder avoided insolvency by agreeing with creditors on a bridge loan of 65 million euros ($87.8 million). The company has 11,000 employees in 40 European locations and sells furniture to retailers throughout Europe, including Ikea. The four people may have manipulated the balance sheet for the fiscal years 2005 and 2006 by 34 million euros, German prosecutors said. A ?significant manipulation? of the balance sheet was detected after the company?s auditor PricewaterhouseCoopers investigated the books, Schieder said in an e-mailed statement dated yesterday.