An independent auditor questioned U.S. Industries' ability to survive after the company reported a net loss for fiscal year 2001 of $524.6 million on sales of $1.1 billion. The loss included about $233 million in write-offs.
The company was seeking to refinance debt and sell off assets in order to survive, but stated "while the company believes it should be possible to implement such a further restructuring, there can be no assurance at this time that it will be able to do so." This reflects the conclusion drawn by the company's auditor.