In a filing with the Securities & Exchange Commission, Sport Chalet Inc. noted that it received notice from the NASDAQ Stock Market 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.
filing for Sport Chalet’s fiscal second quarter ending Sept. 29, the
company reported $9.5 million in stockholders’ equity.
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.
As of Nov. 25, 2013, 7,611,439 shares of the company’s Class A Common Stock (the “Class A Shares”) and 170,565 shares of the company’s Class B Shares Common Stock (the “Class B Shares”) (representing 61.3 prercent and 9.6 prercent, respectively, of the outstanding shares of such class) held by the Olberz Trusts and 791,435 Class B Shares (representing 44.6 prercent of the outstanding shares of such class) held by Craig Levra, the Chairman of the Board and the Chief Executive Officer of the company, are pledged as collateral for loans.
Failure to maintain listing on Nasdaq of the Class A Shares or the Class B Shares may have a material adverse effect on the price or liquidity of such shares. Failure to maintain listing on Nasdaq, or a decline in the price, of the Class A Shares or the Class B Shares may result in the sale of some or all of the shares pledged.