J.C. Penney is at risk of delisting from the New York Stock Exchange after shares of the department store chain traded under $1 for a period of 30 consecutive business days, the company said Thursday.
The company said it received notice on Tuesday and has six months to regain compliance with the requirement. It said it will consider a reverse stock split at its next shareholder’s meeting, to prop its share price above $1 if that doesn’t happen on its own before then. J.C. Penney said it will notify the exchange in the next 10 business days of the plan.
Shares of the department store chain have plunged more than 70% over the past year, and it reported a first-quarter financial loss of $154 million. The company is now valued at around $220 million.
J.C. Penney is also burdened with roughly $4 billion in debt, with $1.5 billion currently available under a revolving credit line, according to SEC filings. The company told CNBC that it has not hired advisors to prepare for restructuring or bankruptcy, after a Reuters report that said otherwise.
Department stores across the board are struggling to make up for declining sales and foot traffic in malls. On Tuesday, luxury department store Barneys New York filed for bankruptcy, and has until Oct. 24 to find a buyer to avoid liquidation.