J. C. Penney Co. Inc. said Aug. 8 that it received a notice of delisting from the NYSE after the company failed to comply with the exchange's minimum closing share price requirement.
Under NYSE rules, listed companies are required to maintain an average closing share price of at least $1.00 over a period of 30 consecutive trading days. The retailer's stock has been trading under $1.00 since July 19.
J. C. Penney has a period of six months from Aug. 6 to regain compliance. During that period, the department store chain's common stock will continue to be listed and traded on the NYSE.
The company said it plans to pursue measures, which include a reverse stock split of J. C. Penney's common shares, if necessary, subject to stockholder approval at the retailer's next annual meeting, to regain compliance with the exchange's requirement.
Other than the minimum stock price requirement, J. C. Penney said it is in compliance with all other NYSE listing standard rules.
J. C. Penney's stock closed up 9.10% to 69.41 cents on Aug. 8 but fell 6.35% to 65 cents in after-hours trading in New York.