J.C. Penney Can’t Be a Penny Stock, Exchange Says

On Aug. 6, J.C. Penney received notice from the New York Stock Exchange (NYSE) that it faces delisting if it doesn’t get its stock price over $1.

NYSE rules require listed companies to maintain an average closing share price of at least $1 per share over a consecutive 30-trading-day period.

The department store now must regain compliance within six months or by its next annual meeting of stockholders.

Among the options it’s considering to boost the price: a reverse stock split, which would be subject to shareholder approval.

For now, it will continue to be listed on the exchange.

At press time, the stock was trading at 60 cents. Its high for the year was $2.65.

Penney’s shares took a hit when reports appeared that it had tapped advisers to restructure its $4 billion debt. While some worried this meant a possible bankruptcy filing, the company said that was not on the table.

The company’s long-term debt stands at $3.826 billion, down from $4.142 billion the prior year, according to its latest financial results.

The department store chain currently comprises 860 U.S. stores. It has been trying to revive its fortunes under Jill Soltau, the former president and chief executive officer of craft retailer JoAnn, who was brought in last year as company’s new CEO.

Moissanite manufacturer Charles & Colvard received a similar warning last year but was able to regain compliance.

(Image courtesy of J.C. Penney)

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JCK News Director