JC Penney is no longer in compliance with NYSE continued listing criteria

JC Penney is no longer in compliance with NYSE continued listing criteria

JC Penney has been warned of a potential delisting from the New York Stock Exchange (NYSE) after shares in the US department store retailer traded below US$1 for a period of 30 days.

The retailer said it received notice from the NYSE on Tuesday (6 August) that it is no longer in compliance with continued listing criteria. It now has a period of six months to regain compliance with the NYSE's minimum share price requirement, or until the company's next annual meeting of stockholders if stockholder approval is required to cure the share price non-compliance, as would be the case to effectuate a reverse stock split.

Under NYSE rules, JC Penney's common stock will continue to be listed and trade on the NYSE during this period, subject to the retailer's compliance with other listing requirements.  

"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," JC Penney said.

Last month, the retailer responded to reports the company has hired advisers to explore debt restructuring options, noting it has a "strong liquidity position" and is not preparing for a restructuring or bankruptcy.