CINCINNATI, Feb. 6, 2015 /PRNewswire/ -- Frisch's
Restaurants, Inc. (NYSE MKT: FRS)
Frisch's Restaurants, Inc. received a notification letter on
February 3, 2015 from the New York
Stock Exchange (the "Exchange") stating that the Company is not
currently in compliance with the NYSE MKT LLC continued listing
standards. Specifically, the Company is not in compliance with NYSE
MKT Company Guide Sections 134 and 1101 as a result of its failure
to timely file with the Securities and Exchange Commission a Form
10-Q Quarterly Report for the period ended December 16, 2014 by the prescribed date of
January 26, 2015. As reported
by the Company in its Form 12b-25 filed on January 23, 2015, the Company was unable to
timely file the Form 10-Q noted above due to the timing and
discovery of a Company employee's defalcation and the ongoing
special investigation directed by the Company's Audit
Committee.
As the Company's failure to timely file its Form 10Q Quarterly
Report is deemed by the Exchange to be a material violation of the
Company's listing agreement with the Exchange, the Exchange has the
authority to suspend and, unless prompt corrective action is taken,
remove the Company's securities from the Exchange.
In order to maintain its listing the Company will submit a plan
of compliance on or before February 17,
2015 advising the Exchange of actions it has taken and will
be taking to regain compliance with the continued listing standards
by May 4, 2015. If the Company
does not submit a plan or if the submitted plan is not accepted or
if the plan is accepted but the Company is not in compliance with
the continued listing standards by May 4,
2015, or if the Company does not make progress consistent
with the plan, the Exchange will commence delisting proceedings as
it deems appropriate.
The Company's Audit Committee of the Board of Directors is
continuing its previously announced special investigation,
including the use of resources of legal counsel, forensic
accountants and private investigators. In addition, as part
of its previously announced civil litigation, the Company directed
the issuance of civil subpoenas and other civil discovery processes
to obtain information from financial institutions and other third
parties. Further information can be obtained by reference to
the Company's Form 8-K filed on January 20,
2015.
Mark Lanning, the Company's Chief
Financial Officer, said, "The Company's management is taking steps
to promptly address the deficiencies noted by the Exchange and to
timely submit a plan of compliance, with a current expectation of
regaining full compliance with the continued listing standards on
or before May 4, 2015."
About Frisch's Restaurants, Inc.
Frisch's is a regional company that operates full service
family-style restaurants under the name "Frisch's Big Boy."
All Big Boy restaurants are currently located in various regions of
Ohio, Kentucky and Indiana.
The Company owns the trademark "Frisch's" and has exclusive,
irrevocable ownership of the rights to the "Big Boy" trademark,
trade name and service marks in the states of Kentucky and Indiana, and in most of Ohio and Tennessee. All of the Frisch's
Big Boy restaurants also offer "drive-thru" service. The
Company also licenses Big Boy restaurants to other operators,
currently in certain parts of Ohio, Kentucky and Indiana.
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SOURCE Frisch's Restaurants, Inc.