Sport Supply Group, Inc. announced late last week that it intends to voluntarily terminate the registration of its securities by filing a Form 15 with the Securities and Exchange Commission on March 5, 2004. SSG's requirement to file certain periodic reports with the SEC will be suspended immediately upon such filing; however, registration of SSG's securities may not terminate for up to 90 days after the filing of the Form 15.
SSG expects to realize significant cost savings as a result of being relieved of the burdensome accounting, legal and administrative costs associated with several SEC reporting requirements and recently enacted corporate governance requirements, which are material components of SSG's operating costs. The projected cost savings will help to bring SSG's expenses more in line with its revenues.
“Current market conditions do not warrant the significant annual costs associated with being a reporting company,” said Geoffrey P. Jurick, SSG's Chairman of the Board and Chief Executive Officer. “Our Board of Directors believes it is prudent to use these funds to enhance SSG's financial performance. As a non-registered company, Sport Supply Group will have more flexibility in pursuing strategic opportunities, continuing to invest in its core business and in recruiting and retaining our people. This move will also enable management to focus more time on operating SSG's business.”
Upon the filing of the Form 15, SSG's securities will no longer be eligible to be quoted on the OTC Bulletin Board; however, SSG anticipates, but cannot guarantee, that its common shares will continue to be quoted on the Pink Sheets' quotation system under the symbol SSPY.
