Pier 1 Imports faces delisting — again
Pier 1 Imports is facing delisting from the New York Stock Exchange for the second time in less than a year.
The beleaguered home goods retailer said it received notice from the NYSE that it is no longer in compliance with NYSE listing standards because the chain’s global market capitalization over a consecutive 30 trading-day period was less than $50 million and, at the same time, its shareholders’ equity was less than $50 million. As of August 2, 2019, Pier 1’s the 30 trading-day average global market capitalization was approximately $25 million and its last reported shareholders’ equity as of June 1, 2019 was $9.2 million.
Pier 1 would be subject to immediate initiation of suspension and delisting procedures if its 30 trading-day average market capitalization falls below $15 million. The company’s absolute market capitalization as of August 2, 2019 was approximately $14.4 million as set forth in the NYSE notice.
The retailer said that it plans to respond and submit a plan within the required 10 days since receipt of the notice. t will then have 45 days to come up with the plan. If the NYSE accepts the plan, Pier 1 will have 18 months to turnaround its business enough to fix the stock issue.
In January, Pier 1 was faced with delisting when its shares traded for under $1 for more than 30 consecutive days. The company resolved the issue when shareholders approved a 20-for-1 reverse stock split.
Pier 1, which has 967 stores, is struggling to turnaround its ailing business. In June, the retailer reported a first-quarter net loss of $81.7 million, or $19.97 a share, compared with a loss of $28.5 million, or $7.11 a share, in the year ago. Net sales fell 15.5% to $314.