JCPenney Stock: Company Faces New York Stock Exchange Delisting Due To Low Worth

JCPenney (JCP) is facing a harsh prospect due to the tanking worth of its stock: delisting from the New York Stock Exchange. Shares of JCP were trading at $0.60 at 3:03 p.m ET.

The company has been given six months to bring its stock price above $1 or face delisting. The department store chain can also try to convince shareholders to approve a reverse stock split, which would cut the number of shares on the market and raise the stock’s price. According to CNN, the company is said to be considering this latter option. Following this warning on Thursday, the company’s price of shares had dropped 6% during after-hours trading to $0.65.

JCPenney’s stock first dipped below $1 on July 19 following reports that it was working with experts to restructure its debt. Despite the fact that the company, which hasn’t turned a profit since 2010, was working towards alleviating its financial woes, this news still spooked investors with the notion of bankruptcy. Shares tanked 17 percent the following day.

“Given our strong liquidity position we can confirm that we have not hired any advisors to prepare for an in-court restructuring or bankruptcy,” the company said in a statement hoping to ease worries.

Should the company get delisted, its stock would only be obtainable through over-the-counter trades, making the process significantly more difficult for prospective investors. Institutions like pension fund plans typically have rules against trading in delisted stocks.