Irvine-based coffeehouse chain Diedrich Coffee Inc. said Thursday that its loss in the quarter ended June 29 widened versus a year earlier.
Diedrich posted a loss of $1 million, up from a loss of $12,000 a year ago. Revenue rose 6.5% to $16.3 million in the period.
The company said costs were higher related to its audit and tax fees, workers’ compensation and franchise meetings, among others.
The company said its $16 million gain from the sale of its international Gloria Jean’s operations earlier this year will allow Diedrich to focus on its domestic operations, said Chief Executive Roger Laverty.
“The proceeds of this transaction are being used to reduce debt and finance new stores,” Laverty said. “We expect that successful expansion of our domestic brands will more than replace the international profit contribution.”
Diedrich also announced that Nasdaq has warned the company it isn’t in compliance because two of three independent audit committee members recently resigned.
Nasdaq asked the company to provide a plan before Oct. 10 to become compliant with its rules.
