Bakers Footwear Group Inc. reported a wider first-quarter loss on Tuesday than it had the previous year.
The company also said it anticipates a delisting notice from Nasdaq as early as this week and is working to have its common stock quoted on the OTC Bulletin Board. The news sent its share price down 36 percent in morning trading.
Bakers added that it has not achieved the minimum level of shareholders’ equity required for continued listing on the Nasdaq Capital Market. The company’s balance sheet shows it has $1.2 million more liabilities than it has assets.
“An unfavorable response to our sandal category in the latter part of the first quarter led to lower sales and margins, as compared to the prior year,” Peter Edison, chairman and CEO of Bakers, said in a written statement. “During the quarter, we continued to control operating expenses and inventory levels. While disappointed that we are unable to maintain our Nasdaq listing, we do not believe that our trading on the OTC Bulletin Board will affect the operations of our business in any significant way.”
Bakers said it believes it has adequate liquidity to fund anticipated working capital requirements and expects to be in compliance with its financial covenants throughout the remainder of 2010.
As of May 1, the company had $149,300 in cash, versus $13.2 million in accounts payable.
For the first quarter, the fashion footwear retailer, which operates 239 stores, lost $3.5 million, or 47 cents a diluted share, compared with a net loss of $2.8 million, or 39 cents, in the same period last year.
Net sales fell 3 percent from the same period a year before, to $43.5 million.