SAN FRANCISCO--(BUSINESS WIRE)--Jun. 25, 2009--
Design Within Reach, Inc. (Nasdaq:DWRI) today announced that it has
notified the NASDAQ Stock Market of its intent to delist its common
stock from the NASDAQ Global Market. The Company currently anticipates
that on July 6, 2009 it will file with the Securities and Exchange
Commission and NASDAQ a Form 25 relating to the delisting of its common
stock. The Company expects that trading in its common stock will be
suspended by NASDAQ effective at the open of business on July 6, 2009,
with official delisting of its common stock becoming effective ten days
thereafter, on July 16, 2009.
Following the delisting, the Company’s common stock is expected to be
quoted on the Pink Sheets, a centralized electronic quotation service
for over-the-counter securities, so long as market makers demonstrate an
interest in trading in the Company's common stock. The Company currently
does not intend to deregister its common stock with the Securities and
Exchange Commission. It will continue to file periodic, quarterly and
annual reports with the Securities and Exchange Commission.
The average daily trading volume of the Company’s common stock on NASDAQ
for the last twelve months was approximately 18,014 shares, which is
approximately 0.124% of the Company's outstanding shares of common
stock. The decision to delist has been reached as part of the Company's
overall strategy to conserve resources and improve cost-effectiveness as
the benefits of maintaining a NASDAQ listing have declined. Considering
the limited trading volume and low trading prices on NASDAQ, the Company
has concluded a listing on NASDAQ does not justify the expense and
administrative burden associated with maintaining such listing. The
decision to voluntarily delist will eliminate listing fees and result in
reduced expenses associated with compliance efforts, such as
professional fees and administrative costs. The Company has also found
limited capital available to it in the public equity markets and
restrictions imposed on raising additional capital have proven
challenging for the Company.
Although the Company has not received formal notice from NASDAQ that it
has failed to comply with applicable NASDAQ continued listing standards,
the Company faces a number of challenges in complying with the NASDAQ
continued listing requirements going forward. The Company has struggled
to maintain compliance with NASDAQ’s minimum required bid price of $1.00
per share. Given the Company’s need for additional working capital and
its current market capitalization, it also believes that it may have
difficulty maintaining compliance with NASDAQ’s minimum public float
requirement.
About Design Within Reach, Inc.
Design Within Reach, Inc., founded in 1998 and headquartered in San
Francisco, California, is an integrated multi-channel provider of
distinctive modern design furnishings and accessories. The Company
markets and sells its products to both residential and contract
customers through 64 studios, two DWR:Tools for Living store and three
DWR Annexes in the United States and Canada, its San Francisco-based
phone sales team at (800) 944-2233 and www.dwr.com.
“Design Within Reach” is a registered trademark of Design Within Reach,
Inc.
Forward Looking Statements
This press release includes forward-looking statements, including
statements related to anticipated revenues, expenses, earnings,
operating cash flows, the outlook for Design Within Reach’s markets and
the demand for its products. Factors that could cause Design Within
Reach’s actual results to differ materially from these forward-looking
statements including the following: we have recently revised our
corporate strategy and our new strategy may not be successful; if we
fail to offer merchandise that our customers find attractive, the demand
for our products may be limited; the expansion of our studio operations
could result in increased expenses with no guarantee of increased
revenues; we do not have long-term vendor contracts and as a result we
may not have continued or exclusive access to products that we sell; our
business depends, in part, on factors affecting consumer spending that
are not within our control; recent turmoil in the credit markets and the
financial services industry may negatively impact our business, results
of operations, financial condition, liquidity or market price of our
common stock; we are subject to various risks and uncertainties that
might affect our ability to procure quality merchandise from our vendors
or receive favorable payment terms from our vendors; we rely on
catalog-based marketing, which could have significant cost increases and
could have unpredictable results; we must manage our online business
successfully or our business will be adversely affected; we have made
and will continue to make certain systems changes that might disrupt our
supply chain operations and delay financial results; management has
identified material weaknesses in internal controls over financial
reporting; our failure to implement and maintain effective internal
controls in our business could have a material adverse effect on our
business, financial condition, results of operations and stock price; we
may need additional financing and may not be able to obtain additional
financing on favorable terms or at all, which could increase our costs,
limit our ability to grow and dilute the ownership interests of existing
stockholders; we may not manage our inventory levels successfully;
changes in the value of the U.S. dollar relative to foreign currencies
and any failure by us to adopt and implement an effective hedging
strategy could adversely affect our operating results; we rely on
foreign sources of production, which subjects us to various risks; we
may fail to timely and effectively obtain shipments of product from our
vendors and deliver merchandise to our customers; we face intense
competition and if we are unable to compete effectively, we may not be
able to achieve and maintain profitability; and our operating and
financial performance in any given period might not meet the guidance
that we have provided to the public and other risks detailed in our
reports and filings with the Securities and Exchange Commission,
including our latest Annual Report on Form 10-K and Quarterly Report on
Form 10-Q, which is available at the SEC’s website at www.sec.gov.
You are urged to consider these factors carefully in evaluating the
forward-looking statements herein, and we caution you not to place undue
reliance on forward-looking statements, which speak only as of the date
they are made. We undertake no obligation to update publicly any
forward-looking statements to reflect new information, events or
circumstances after the date they were made or to reflect the occurrence
of unanticipated events.
Source: Design Within Reach, Inc.
Press Contact:
Design Within Reach, Inc.
Peggy Jacobs,
415-676-6528
pjacobs@dwr.com
