Design Within Reach, the San Francisco provider of hip home furnishings, has told Nasdaq that it plans to delist its shares from the stock market on July 6, after which the company expects them to trade on the Pink Sheets, according to a filing the company made with the SEC Thursday.
The company said that the limited trading in its stock–the daily average number of shares traded over the last year amounted to about 18,000, or less than a half percent of shares outstanding, while the average trading price during that time was 85 cents–no longer justified the “expense and administrative burden” associated with ongoing listing on the Nasdaq exchange. It will continue to file periodic financial reports with the SEC.
In January the company took several steps to lower expenses enough to provide it with “the ability to continue in existence,” including restructuring real estate leases, fewer planned catalog mailings and fewer pages, delaying implementation of a new ERP system, lowered outside contractor fees “as well as headcount in all areas,” according to the company’s annual 10-K filing.
Perhaps getting rid of the Nasdaq listing is a prelude to eventually going private.
Two directors associated with the San Francisco private equity firm JH Partners resigned from the company’s board last month “to eliminate any conflicts of interest that might arise if JH Partners, were to propose an acquisition or financing transaction in connection with” Design Within Reach’s “ongoing process to review strategic alternatives.”