J.C. Penney has received notice from The New York Stock Exchange.
The struggling department store retailer announced it received notice on August 6 that it is no longer in compliance with the NYSE’s listing criteria. The criteria requires listed companies to maintain an average closing share price of at least $1.00 over a consecutive 30 trading-day period. Penney, which last closed at $1.00 on June 6, has six months from receiving the notice to regain compliance with the requirement.
Penney said it will consider a reverse stock split at its next shareholder’s meeting to increase its share price above $1 if the stock doesn’t happen on its own before then. The retailer said it will notify the exchange in the next 10 business days of the plan.
“The company intends to pursue measures to cure the share price non-compliance, including through a reverse stock split of the company's common stock, subject to stockholder approval, no later than at its next annual meeting of stockholders, if such action is necessary to cure the share price non-compliance,” Penney said in a statement.
The chain, whose shares have fallen more than 70% over the past year, is set to report its second quarter results on August 15. In May, Penney reported a net loss for the first quarter of $154 million, up from $78 million in the year-ago period. Same-store sales decreased 5.5%.