Gottschalks to appeal NYSE listings ruling
FRESNO, Calif. Gottschalks has announced that the New York Stock Exchange informed the company that it is in non-compliance with Section 802.01B of the NYSE Listed Company Manual, because over a consecutive 30-day trading period, the company's average global market capitalization was less than $25 million. As a result, the NYSE plans to suspend trading of Gottschalks' stock prior to the market opening on Monday, October 27.
Gottschalks said that it has informed the exchange it plans to appeal the ruling. During the review, the company will take all necessary actions to have its common stock quoted on the OTC Bulletin Board and will consider all available alternatives.
Under applicable NYSE procedures, the Company plans to request a review of the determination by the Committee of the Board of Directors of the NYSE by filing a request with the Secretary of the NYSE within 10 business days from the time the Company received the aforementioned notice. The review will be scheduled for the first Review Day, which is at least 25 business days from the date the request for review is filed with the Secretary of the NYSE. Based on the outcome of the appeal process the Company's stock could then be delisted from the exchange. The Company will separately announce the appeal date and OTC symbol when available.
Jim Famalette, chairman and ceo of Gottschalks said, "In recent months, the challenges in the macroeconomic environment have intensified due to unprecedented and mounting events in the financial markets. Clearly, these challenges have had an adverse effect on our stock performance. Nonetheless, we remain committed to managing the areas of our business within our control. In particular, we strengthened our liquidity through the recent sale of certain real estate assets, we have streamlined our operations, and have reduced inventory levels consistent with sales trends. Additionally, we signed a letter of intent with Everbright Development Overseas, which will provide for a significant infusion of capital into our business and create opportunities to enhance our operations. We believe all of our proactive actions will better position our company for the future as we continue to focus on maximizing long-term value for our shareholders."