K-Mart's former CEO and CFO now face an SEC investigation with charges that they did not provide the story behind the numbers. Supposedly, they overstocked inventory, could not pay, and the suppliers stopped shipping. The financials did not disclose this and only stated that the increase in inventory was due to seasonal fluctuations.
Well I believe that LCI's management was even more culpable with the Jerome Stevens and Perrigo deal. We will see what happens.