Design Within Reach Pushing Nasdaq Away Once More

We’d been laying off Design Within Reach for a little while, just because we thought maybe we were coming across like we had a vendetta or something against them, which we absolutely don’t. But sometimes, when you keep seeing their name pop up again and again in the business news, you can’t help but bring it back up in the conversation. This time around, for the second quarter in a row, they’re walking that dangerous line again by possibly not being able to file their financial reports to Nasdaq, and once more facing the possibility of being delisted, which would be fairly disastrous for a company already hurting pretty badly. Here’s some info:

The company had previously delayed its second-quarter report. It said the delay was due to management turnover in its finance department and material weaknesses in internal controls over financial reporting, resulting in its inability to reconcile a difference between its accrued inventory sub-ledger and the general ledger.

Design said the problem stems from a new inventory and sales systems and inadequate training of finance personnel. The Nasdaq said it had granted Design continued listing provided it filed its second-quarter report and any restatements of prior periods by Friday. The company said it does not anticipate meeting the deadline and has applied for a further extension. There is no guarantee Nasdaq will grant the extension.

We’ll follow up sometime next week if we hear what ultimately goes down.

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