JC Penney Update: Retailer Receives Notice Of Possible Delisting From NYSE

JC Penney (JCP) has received notification from the New York Stock Exchange (NYSE), saying that it is no longer in compliance with its listing criteria. In order to remain in compliance with the NYSE, companies must maintain an average closing share price of at least $1 for a consecutive trading period of 30 days.

JC Penney has seen its share prices dip as it struggles with nearly $4 billion in debt and numerous stores in struggling malls, Retail Dive reported.

Now that JC Penney has received the notice from the NYSE, it has six months to regain compliance at its “minimum share price requirement” or until the next annual shareholder’s meeting. The company may also, through the approval of its stockholders, enact a reverse stock split.

JC Penney’s stock will, however, continue to be listed and traded on the exchange until compliance is met or it is delisted. The company said it plans to provide notification to the NYSE within 10 days on how it will “cure the deficiency.”

JC Penney said the notification does not affect is normal business operations or create a default of its debt or other agreements.

Shares of JC Penney stock were down 12.10 percent as of 11:21 a.m. ET on Friday.