Create a free Manufacturing.net account to continue

Diamond Foods Faces Possible Delisting

Snack maker Diamond Foods Inc. is facing possible delisting of its shares from the Nasdaq stock exchange after missing a Monday deadline to file three quarterly reports.

SAN FRANCISCO (AP) — Snack maker Diamond Foods Inc. is facing possible delisting of its shares from the Nasdaq stock exchange after missing a Monday deadline to file three quarterly reports.

The San Francisco company, whose brands include Kettle Chips, Emerald nuts and Pop Secret popcorn, said Monday that it wouldn't make the deadline and expected a warning from Nasdaq. Diamond said Thursday that the warning had arrived and it planned to request a hearing, which will automatically delay any delisting until at least July 5.

The company plans to request that action be delayed until the hearing, which would give it enough time to finish the delayed quarterly reports.

The company is facing several challenges after controversy erupted over its payments to walnut growers.

The company announced in February that its audit committee found some of its payments to the growers had been booked in the wrong periods. The payments — an estimated $20 million in 2010 and $60 million in 2011 — skewed the company's financial results. Diamond is also restating its full 2010 and 2011 reports as a result.

The accounting problems led to the collapse of its proposed buyout of the Pringles brand from Procter & Gamble Co. Instead, Kellogg Co. wound up buying Pringles and closed on the $2.7 billion acquisition last month.

The company also has restructured its top management in wake of February's announcement. Food and beverage industry veteran Brian Driscoll took over as president and CEO in May, replacing Rick Wolford. Wolford, a board member, had filled in as head of the company since Diamond put then-CEO Michael Mendes and then-Chief Financial Officer Steven Neil on administrative leave over their roles in the walnut payment controversy.

Shares of Diamond Foods rose 9 cents to close at $18.64 and were unchanged after hours.

More