Hidden accounting fraud forced the giant to postpone publication of results

Macy's, the well-known US retail chain, has been at the centre of a scandal that has revealed major accounting irregularities. An employee, whose name has not been disclosed, caused accounting errors so serious that the company had to postpone publication of its quarterly results. The situation raises questions about internal controls and the future of the company. Alleged irregularities of up to $154 million are involved.

Macy's has announced that it has discovered accounting irregularities involving up to $154 million that were intentionally hidden for nearly three years. An employee who no longer works at the company manipulated accounting records to hide the cost of small package delivery. While those costs represent only a small fraction of the $4.36 billion in total delivery services during that period, Macy's $M called the errors significant enough that it had to delay the release of the results until Dec. 11.

However, according to company management, the discrepancies did not…