De-Listing Threat at DWR, La Honta Leaves

August 22, 2006  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on August 2006 For the second time this year, Nasdaq has threatened San Francisco-based retailer Design Within Reach with potential de-listing of the company’s securities for failure to file quarterly reports on a timely basis.

DWR has requested a hearing before a Nasdaq listing qualifications panel to review the Nasdaq staff determination and request continued listing on Nasdaq Global Market until the retailer files its quarterly report on Form 10-Q for the quarter ended July 1, 2006. In its determination letter, Nasdaq staff informed DWR that this request will result in a postponement of the delisting pending the panel’s decision, but provided no assurance that the Panel will grant its request for continued listing.

DWR had announced earlier this month that turnover in financial management and weak internal controls on reporting had delayed the second-quarter filing.

In addition, the Design Within Reach announced that Ken La Honta has officially resigned from the company, effective August 16. Earlier, the company had announced La Honta’s departure would be effective on the filing of the 10-Q for the second quarter of 2006 or Sept. 1, whichever came first.