Nasdaq Warns Sport ChaletWednesday, November 27, 2013
Sport Chalet Inc. filed a notice Tuesday with the Securities and Exchange Commission announcing communication from Nasdaq Stock Market LLC about the company’s non-compliance with the exchange’s rules.
Nasdaq requires a company to hold a minimum of $10 million in stockholders’ equity in order to maintain a listing on the Nasdaq Global Market. In a filing for Sport Chalet’s fiscal second quarter ending Sept. 29, the company reported $9.5 million in stockholders’ equity.
The La Cañada Flintridge-based retailer of upscale sporting goods has 45 days to submit a plan to Nasdaq to regain compliance, or it can alternatively transfer its securities to the Nasdaq Capital Market if it meets that exchange’s listing requirements.
The announcement comes on the heels of a disappointing fiscal second quarter for the company. Declining sales contributed to a net loss of $3 million and the closure of three underperforming stores during the quarter.
The company has recently tried to turn around its marketing campaign, tapping Tory Burch LLC chief marketing officer Miki Berardelli to be on Sport Chalet’s board of directors, along with announcing a recent partnership with First Bankcard to launch a new Sport Chalet Mastercard credit card program.
Shares of Sport Chalet closed down 2 cents, a drop of nearly 2.7 percent, to $1.10 on Wednesday. This represents the stock’s lowest closing price during the past year.