Shares in Blue Holdings Inc. dropped nearly 30 percent early Tuesday after the denim company said it might restate earnings and was in danger of being delisted.

The Commerce-based maker of premium denim said it may need to restate financial statements for the year ended Dec. 31, 2007 as a result of potential accounting errors. No specifics were given in the release.

An independent internal audit committee is working with the company’s recently hired chief financial officer, Eric Hohl, to conclude the review as quickly as possible, the company said. Hohl assumed his position May 5 after Larry Jacobs, the previous CFO, resigned from his position “to pursue other opportunities.”

The potential accounting errors will delay the filing of its earnings for the quarter ended March 31 until the matters are resolved.

The company added that it received a letter, dated May 14, from Nasdaq stating the company is failing to comply with minimum bid price and stockholders’ equity requirements for continued listing on the exchange, making its securities subject to delisting.

The company’s share price has been under $1 for more than seven months.

Blue Holdings requested a hearing to review the matter but said there is “no assurance that the panel will grant the company’s request for continued listing.”

Shares in Blue Holdings were down 31 percent to 40 cents per share in early trading Tuesday.