After spending 30 days with its stock trading at share prices of under one dollar, JCPenney has received formal notice from the New York Stock Exchange (NYSE) that it is at risk of being delisted. The share price has dropped more than 70% during the past year, according to CNBC, and was down to 69 cents per share at the Aug. 8, 2019 close.
JCPenney has six months to correct the problem; in a statement, the company said it would alert the NYSE within 10 days of its intent to cure the deficiency. The retailer plans to pursue measures to boost its stock price, including a reverse stock split of its common stock, a move that would require stockholder approval.
Like many other mid-price department stores, JCPenney has struggledin recent years from factors including declining mall traffic and competition from lower-price competitors. In July, the company hired advisers in what some saw as preparation for a potential bankruptcy, but the retailer quickly issued a statement noting that “We have no significant debt maturities coming due in the near term, and we continue to maintain a strong liquidity position.”
For Q1 2019, which ended May 4, 2019, JCPenney’s total net sales decreased 5.6% to $2.44 billion, and comparable store sales declined 5.5%. The retailer will announce its Q2 financial results on Aug. 15, 2019.
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