The Tile Shop Responds to Report on Related Party Transactions
Tile Shop Holdings, Inc. (NASDAQ: TTS) (the “Company”), a specialty
retailer of manufactured and natural stone tiles, setting and
maintenance materials, and related accessories, announced that earlier
today, the Company was made aware of a report which alleges that its
historical financial statements may require restatement along with other
accounting irregularities. The Company adamantly denies these
allegations and believes that the financial statements are properly
stated and its business practices are appropriate.
The Company negotiates all inventory purchases directly with each
vendor. As is common practice, certain vendors utilize an export trading
company, such as Beijing Pingxiu, for sales to U.S. based companies.
Other Chinese vendors maintain their own export licensing authority. The