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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of the earliest event reported): April 23, 1999
(April 15, 1999)
NEW YORK BAGEL ENTERPRISES, INC
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(Exact name of Registrant as specified in its charter)
0-21205
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(Commission file number)
Kansas 73-1369185
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
115 East 8th Street
Stillwater, Oklahoma 74074
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(Address of principal executive offices, including zip code)
405-624-3700
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(Registrant's telephone number, including area code)
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ITEM 4. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT.
KPMG LLP was previously the principal accountants for New York Bagel
Enterprises, Inc. On April 15, 1999, that firm was notified that its
appointment as principal accountants was terminated. Allen, Gibbs and Houlik,
L.C. was engaged as principal accountants on March 23, 1999. The decision to
change accountants was approved by the board of directors.
In connection with the audits of the two fiscal years ended December 27, 1998,
and the subsequent interim period through April 15, 1999, there were no
disagreements with KPMG LLP on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedures, which
disagreements if not resolved to their satisfaction would have caused them to
make reference in connection with their opinion to the subject matter of the
disagreement.
The audit reports of KPMG LLP on the consolidated financial statements of New
York Bagel Enterprises, Inc. as of and for the years ended December 27, 1998 and
December 28, 1997, did not contain any adverse opinion or disclaimer of opinion,
nor were they qualified or modified as to uncertainty, audit scope, or
accounting principles, except as follows:
KPMG LLP's auditors' report on the consolidated financial statements of
New York Bagel Enterprises, Inc. as of and for the years ended December
27, 1998 and December 28, 1997 contained a separate paragraph stating
that "The accompanying consolidated financial statements have been
prepared assuming that the Company will continue as a going concern. As
discussed in note 15 to the consolidated financial statements, the
Company has suffered recurring losses from operations and current
liabilities exceed current assets by approximately $2.6 million at
December 27, 1998 that raise substantial doubt about its ability to
continue as a going concern. Management's plans in regard to these
matters are also described in note 15. The consolidated financial
statements do not include any adjustments that might result from the
outcome of this uncertainty."
Such report of KPMG LLP also contained a separate paragraph stating that
"as discussed in note 1 of notes to consolidated financial statements,
the Company changed its method of accounting for restaurant preopening
costs in 1997."
A letter from KPMG LLP will be filed as an exhibit.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
16. Letter from KPMG, LLP dated April 20, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
NEW YORK BAGEL ENTERPRISES, INC.
/s/ RICHARD RANDALL WEBB
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Richard Randall Webb
CHIEF FINANCIAL OFFICER, TREASURER AND SECRETARY
Dated: April 23, 1999
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KPMG
NationsBank Financial Center
100 N. Broadway, Suite 600
Wichita, KS 67202
Telephone: (316) 267-8341
Fax: (316) 267-3339
April 20, 1999
Securities and Exchange Commission
Washington, D.C. 20549
Ladies and Gentlemen:
We were previously principal accountants for New York Bagel Enterprises, Inc.
and, under the date of March 12, 1999, we reported on the consolidated financial
statements of New York Bagel Enterprises, Inc. as of and for the years ended
December 27, 1998 and December 28, 1997. On April 15, 1999, our appointment as
principal accountants was terminated. We have read New York Bagel Enterprises,
Inc.'s statements included under Item 4 of its Form 8-K dated April 20, 1999 and
we agree with such statements, except that we are not in position to agree or
disagree with New York Bagel Enterprises, Inc's statement that the change was
approved by the board of directors.
Very truly yours,
KPMG LLP
/s/ KPMG LLP
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