Download the 2009 annual report in PDF format - ANF

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CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated fi nancial statements
Note 6 Accrual accounts – liabilities
Prepaid income includes €485,000 in rental and service charge payments for the coming months, half-yearly lease payments being invoiced
on April 1 and October 1 and €558,000 in front-end fees recognised in income over the minimum lease term.
Note 7 Contingency and loss provision
Gross amounts
(€ thousands)
ANF • 2009 ANNUAL REPORT
Amount as of
12/31/2008 Increase Decrease
Amount as of
12/31/2009
Provision for long-service awards 48 - - 48
Provision for supplementary post-employment benefi ts 10 - - 10
Provision for pensions - - - -
Other contingency provisions 43 - - 43
TOTAL 101 - - 101
Current liabilities 43 - - 43
Non-current liabilities 58 - - 58
Reversals of provisions relating to provisions used or that no longer
serve any purpose.
The contingency provision is for the risk of non-recovery of a
property tax refund following the sale of a property.
The most signifi cant ongoing disputes are as follows:
1) Chief Operating Offi cer and Real Estate Director
Legal action is currently underway following the removal and
dismissal in April 2006 of ANF’s Chief Operating Offi cer and Real
Estate Director:
• the dismissed employees have fi led claims with the Paris
Employment Tribunal for €4.6 million in the case of the former
Chief Operating Offi cer (€3.4 million vis-à-vis ANF and €1.2 million
vis-à-vis Eurazeo) and €1 million in the case of the former Real
Estate Director;
• similarly, a commercial suit against ANF has been lodged with the
Paris Commercial Court by the former Chief Operating Offi cer as
former corporate offi cer;
• a suit has also been lodged with the same court by a former
supplier.
Prior to the bringing of these employment and commercial suits,
ANF had, in connection with criminal proceedings, brought a civil
action for damages before the Marseilles examining magistrate
regarding alleged acts committed by the aforementioned former
supplier and by its two former offi cers and others.
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A criminal investigation is underway and letters rogatory have been
provided to the Marseilles Criminal Investigation Bureau. ANF’s
former Chief Operating Offi cer and Real Estate Director have been
interviewed under caution and placed under judicial supervision.
The same is true for the former supplier who was on remand for a
number of months.
The Examining Chamber of the Aix en Provence Appeal Court
handed down a ruling on March 4, 2009 confi rming the formal
examination of ANF’s former Chief Operating Offi cer and hence the
existence of serious and corroborating evidence against him with
regard to the claimed misuse of corporate assets to the detriment
of ANF.
Given the close connection between the criminal and labour
aspects of this case, the Paris Employment Tribunal agreed to a
stay of proceedings at its February 5, 2010 hearing.
Similarly, given the close connection between the criminal and
labour aspects of the case as well as the formal examination of
ANF’s former Real Estate Director, a stay of proceedings was
sought and granted by the Employment Tribunal.
In addition, prior to the aforementioned stay of proceedings, a ruling
was handed down on February 9, 2007 by the Paris Employment
Tribunal in which it jointly ordered Eurazeo and ANF to pay ANF’s
former Chief Operating Offi cer the sum of €50,000 in respect of the
variable bonus he sought.
Moreover, like the Employment Tribunal, in a ruling handed down
on September 25, 2007, the Paris Commercial Court issued a stay
of proceedings in respect of the case brought before the court by
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