Amex Could Delist HanoverBy Following Hanover Direct Inc.'s announcement last month that the American Stock Exchange halted trading of the company's common stock, it reported late yesterday that Amex might take the additional step of delisting the stock.
Hanover, Edgewater, NJ, markets home, apparel and gift items via catalogs and the Internet under brand names such as Domestications, The Company Store, Company Kids, Silhouettes, International Male, Scandia Down and Gump's by Mail.
Hanover said Nov. 10 that it would restate earnings on financial statements issued from Dec. 25, 1999, to June 26, 2004, because of an accounting error that will result in reduction of revenue of about $2.6 million. Soon after that announcement, it reported that Amex would halt trading of its common stock until an investigation of the error was complete and the company had filed all relevant periodic reports with the Securities and Exchange Commission.
The latest announcement results from a letter Hanover received from Amex dated Dec. 9 notifying it that it failed to file its quarterly report on Form 10-Q with the SEC for the fiscal quarter ended Sept. 25, 2004. Filing these reports is a condition of being listed on the exchange. If the company does not file the report by Dec. 31, Amex will initiate delisting proceedings.