Bakers to appeal latest Nasdaq warning

St. Louis Bakers Footwear Group said that it received a letter from Nasdaq stating that the company hadn’t met the exchange’s $2.5 million minimum stockholders’ equity requirement within the extension period allowed after an earlier notification.

When the company announced its fourth-quarter results last week, Bakers indicated that shareholders equity was $2,140,000 as of Jan. 30.

On. Dec. 14, Nasdaq sent a previous notification letter to Bakers on the same topic, after which the company said it submitted a plan of compliance and on Jan. 21 was granted an extension until March 29.

If the company doesn’t appeal, its stock will be suspended from trading at opening of business April 7, and Nasdaq will file with the Securities and Exchange Commission to remove Bakers securities from listing and registration on Nasdaq.

Bakers said in a regulatory filing that it expects to submit a request for a hearing on or before April 5. The request will stay the suspension of Bakers’ stock, pending a decision by the Nasdaq hearings panel.

The company said it expects to base its appeal upon its improved operating results over the past two years, positive sales momentum in 2010 and positive cash flow.

Bakers said in the filing that it believes it’s likely that its operating results won’t allow it to regain compliance with Nasdaq’s minimum stockholders’ equity requirement this fiscal year, so it can give no assurance that its appeal will be successful.