Ignite Restaurant Falls After Announcing Accounting Errors

Ignite Restaurant Group IRG is trading lower on the session following the announcement that it has determined to correct non-cash related errors related to its accounting treatment of certain leases. Ignite Restaurant estimates that the aggregate pre-tax effect of the restatement items from 2006 through the Q1r of 2012 will be $3.4-3.8 million. Raymond A. Blanchette, III, President and Chief Executive Officer of Ignite Restaurant Group, said, “We are thoroughly committed to providing Ignite shareholders with accurate disclosure and are moving as expeditiously as possible with full resources to quickly identify and correct these issues. While we are extremely disappointed and embarrassed to be in the position of having to restate our financial results, we want to assure our investors that our operations remain strong and our core investment thesis remains unchanged." Ignite Restaurant is currently trading at $14.96, a loss of $4.10 or 21.51%.