Groupon Inc (NASDAQ:GRPN) has been grappling with a myriad of problems over the past several months. Apart from its stock hovering near an all-time low, it has also been the victim of countless hits from watchers and investors. The most recent twist of events was when the company made the headlines, after a series of allegations over accounting anomalies went viral.
As of the moment, CEO Andrew Mason has noted that the company is serious about growth and expansion, underscoring the company’s swelling need to pull itself out of the gutter. Last week, the CEO was quoted that for saying that the company had a highly desirable growth rate.
Today, it has confirmed that it will enlarge its footprint in India, by hiring agents to handle emails that are currently being handled by Chicago employees. This is however not a cost cutting strategy, the company will maintain its staff in Chicago. The move is merely meant to capitalize on the benefits extended by time zone differences, like an around the clock service package.
These recent moves, coupled with the appointment of a new Chief Accounting Officer, signal Groupon Inc (NASDAQ:GRPN)’s doubled efforts in its attempts to reclaim it lost glory.
Groupon Inc (NASDAQ:GRPN) yesterday named a new Chief Accounting Officer, following protracted disputes over questionable accounting practices in the company.
Brian Stevens is now the company’s new Chief Accounting Officer, and will report to the company CFO, Jason Child. Stevens, who was formerly an audit partner at KPMG for the past 16 years, steps into a company that is currently grappling with a growing negative sentiment and unsolved mysteries within its finance department.
The online company has made a crucial addition to its work force, and perhaps, wants to overhaul its accounting operations in the hopes of unraveling what happened to the revenue it had collected from its activities.
The accounts department has basically been under the microscope of varied stakeholders. Not only did the company’s accounts exhibit peculiar tendencies, but some of the financial metrics employed by accounting department also stirred controversy among regulators. The Adjusted Consolidated Segment Operating Income in particular, raised a lot of concerns and was actually dropped by the company.
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Considering the way things are shaping out, adding Stevens to the work force may not reverse the company’s fortunes. Things have already gone out of control, and the company will have a hard time restoring the much needed confidence in disgruntled investors. Ever since the company went public last year, it has bled a lot of top talent, losing reputable top-level management, including the Senior Sales Executive.
Doubled efforts to expand into potent markets and an improved customer service, will perhaps, provide a temporary solution, as the company patches things up in the accounting department. Until things shape out, Groupon Inc (NASDAQ:GRPN) will still have to wander in mediocrity. Until then, we cmust ask, what exactly will the new CAO be doing? Helping account properly or playing more games with financial shenanigans?