BDO in Today's Media Landscape
BDO USA CEO Wayne Berson shares a message with BDO professionals and principals on recent media events and our ongoing commitment to BDO’s people and clients.
BDO professionals,
We are at an exciting time in our profession, with many good things on the horizon for our firm and our people. I could not be prouder of BDO and grateful for the incredibly dedicated work each of you do every day to grow our business and strengthen our relationships with one another and our clients.
Recently, some negative press has surfaced regarding one of our clients, with references to our firm. Some of you have raised these topics in conversation with me and other firm leaders. Our executive team takes these matters seriously, and we want to be transparent with you. As some of you may be aware, First Brands Group is experiencing a bankruptcy reorganization which is attracting significant attention in the financial media, with regular reporting from major news outlets. As auditor for First Brands, BDO has been included in some of this coverage, with media focusing on BDO’s efforts to manage costs and attempting to draw connections between BDO, Apollo Global Management and First Brands.
Regrettably, the reporting so far that mentions BDO has resorted to the use of falsehoods and innuendos. Our firm continues to focus on operational efficiency in the normal course of business in the same way it always has, and in the same way as industry peers do. You’ve likely seen that several other firms have announced and implemented meaningful headcount reductions and cost savings initiatives as recently as this past week.
While we are First Brands’ auditor, no one has accused the firm of doing anything wrong in connection with our role as auditors. Every firm in our industry has had clients that pursue bankruptcy filings to reorganize in the same way that First Brands is seeking to reorganize through a bankruptcy process. The reporting that occurred last week attempting to link our audit relationship with First Brands to our relationship with Apollo was false. The two firms had no such connectivity. We are taking decisive action to protect our reputation against these claims. Through our legal counsel, McDermott Will & Schulte, we issued a Notice to Going Concern, requesting an immediate retraction of the story published on October 13 that asserted these false claims. If they do not retract, further action will be taken. That Notice is linked here so you can have full transparency into our actions as a leadership team.
We anticipate that the First Brands bankruptcy will linger for months, if not a year or two, and therefore potentially will continue to result in inaccurate reporting relating to BDO. Your leadership team will continue to push back where that reporting is inaccurate and continue to be transparent with you as developments occur. In the interim, we share a wonderful firm with vibrant client relationships and a population of colleagues who provide the highest quality of service to our clients.
I am prouder than ever of the firm we have built together. While there are always challenges along the way, I am confident that by remaining committed to one another and our clients, we will continue to thrive.
If you are contacted by the media, please direct the inquiry to our Chief Marketing & Communications Officer, Deneen Akture. Please contact your practice leader with any of your questions or concerns. The Executive Team is also here to help address questions from clients or prospects regarding the situation or related media.
Thank you for your continued dedication and professionalism.
Wayne Berson