SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
November 4, 1996
DONNKENNY, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware 0-21940 51-022889
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification
incorporation No.)
1411 Broadway
New York, New York 10018
(Address of principal executive offices)
Registrant's Telephone Number, including
area code: (212) 730-7770
Not Applicable
(Former Address, if changed since last report)
<PAGE>
This Current Report on Form 8-K contains forward-looking statements that
involve certain risks and uncertainties. The Company's actual results could
differ materially from the results discussed in the forward-looking
statements.
Item 4. Changes in Registrant's Certifying Accountant.
At the close of business on November 4, 1996, KPMG Peat
Marwick LLP ("KPMG") orally advised the Company that it is resigning as the
Company's auditors. On November 5, 1996, the Company received a letter from
KPMG to such effect, which letter is set forth as Exhibit 1 to this Current
Report on Form 8-K. KPMG has advised the Company that information has come to
its attention that has resulted in a loss of confidence by KPMG in
representations made to it by the Company's management, that KPMG had
concluded that it would no longer be able to rely on representations of all
three members of financial management and that, with respect to the
representations of other members of the Company's management, KPMG had
concluded that it did not have access to sufficient, credible information to
enable it to reach a judgment as to whether it could rely on such
representations, or could be associated with financial statements prepared by
such management. KPMG has expressed no disagreement with the Company during
the two most recent fiscal years and subsequent interim period on any matter
of accounting principles or practices, financial statement disclosure, or
auditing scope or procedure which disagreements if not resolved to KPMG's
satisfaction would
- 2 -
<PAGE>
have caused them to make reference in connection with its reports to the
subject matter of disagreement. In addition, KPMG's reports on the Company's
financial statements for such fiscal periods contained no adverse opinion or
disclaimers of opinion nor were such reports qualified or modified as to
uncertainty audit scope or accounting principles. KPMG's letter confirming
that there is no such disagreement is attached as Exhibit 2.
The Company has engaged Deloitte & Touche LLP as its new independent
auditors to audit the Company's financial statements for its new fiscal year
ending December 31, 1996, and the related transition period within such fiscal
year, as well as its 1994 and 1995 fiscal years. The fiscal 1994 and 1995
financial statements had previously been audited by KPMG. In its current
report on Form 8-K dated October 15, 1996, the Company announced that these
financial statements should no longer be relied upon.
Item 5. Other Events.
In connection with the previously announced restatement of the Company's
financial statements, the Audit Committee of the Company's Board of Directors
retained independent counsel to investigate the circumstances relating
thereto. After reviewing the preliminary results of such investigation, the
Audit Committee appointed Stuart S. Levy as its new Chief Financial Officer,
effective November 4, 1996, and re-assigned its Controller and its Assistant
Controller to non-financial operational responsibilities. The Company's former
Chief Financial Officer has been placed on a leave of absence. The Company
anticipates
- 3 -
<PAGE>
that the restatement of its previously issued financial statements will not
have a material adverse effect on its financial position.
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
Exhibit No. Description
1 Resignation Letter from KPMG Peat Marwick LLP to the
Company, dated November 5, 1996.
2 Letter from KPMG Peat Marwick LLP to the
Securities and Exchange Commission, dated November 11,
1996.
- 4 -
<PAGE>
SIGNATURE
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.
DONNKENNY, INC.
By: /s/ Richard Rubin
------------------------------------
Richard Rubin
President
Date: November 11, 1996
- 5 -
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
1 Resignation Letter from KPMG Peat Marwick LLP to the
Company, dated November 5, 1996.
2 Letter from KPMG Peat Marwick LLP to the
Securities and Exchange Commission, dated November 11,
1996.
[Letterhead of KPMG Peat Marwick LLP]
November 5, 1996
Mr. Richard Rubin
President
Donnkenny, Inc.
1411 Broadway
New York, New York 10018
BY HAND
Dear Mr. Rubin:
This is to confirm our advice last evening that the client-auditor relationship
between Donnkenny, Inc. and KPMG Peat Marwick LLP has ceased.
Very truly yours,
/s/ KPMH Peat Marwick LLP
KPMG Peat Marwick LLP
cc: Chief Accountant
Securities and Exchange Commission
[Letterhead of KPMG Peat Marwick LLP]
November 11, 1996
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Ladies and Gentlemen:
We were previously principal accountants for Donnkenny, Inc. and, under date of
February 13, 1996, we reported on the consolidated financial statements of
Donnkenny, Inc. and subsidiaries as of and for the years ended December 2, 1995
and December 3, 1994. Donnkenny, Inc., with our concurrence, filed a Form 8-K
dated October 15, 1996 that, inter alia, stated that these fiscal year 1994 and
1995 financial statements should no longer be relied upon. On November 4, 1996,
we resigned. We have read Donnkenny, Inc.'s statements included under Item 4 of
its Form 8-K dated November 11, 1996, and we agree with such statements, except
that we are not in a position to agree or disagree with Donnkenny, Inc.'s
statements that it has engaged successor auditors.
Very truly yours,
KPMG Peat Marwick LLP
