Sport-Haley, Inc. reported that the company's Board of Directors has recently formed a special committee to determine whether the Board of Directors should consider taking steps which would relieve the company from its public reporting obligations under the securities laws.


The Committee is expected to reach its conclusions and provide the Board of Directors with a report of its recommendations by the end of April 2009, at the very latest.

The company's management believes that, given the relative size of the company, the significant costs of complying with securities reporting requirements greatly outweigh the benefits. The daily trading volume for the company's common stock in market-negotiated transactions is relatively insignificant when compared with other public companies, and management believes that the company resources currently allocated to complying with securities reporting requirements would be better utilized within other initiatives.


Therefore, management believes that it may be in the company's best interests to pursue the procedures required to relieve the Company from its public reporting obligations.

“Given the current world economic conditions and conditions within golf apparel markets in particular, we're looking at every opportunity to contain operating costs while at the same time maintaining the high level of products and customer service that we provide,” stated Donald W. Jewell, Chief Executive Officer. “It has not made sense for some time now for a Company our size to expend the hundreds of thousands of dollars necessary to maintain compliance with securities reporting regulations each year. Our use of capital would be much better utilized on initiatives that give us a better opportunity to support our customer base with outstanding service and to expand our marketing efforts within our core business.”