Struggling Christopher & Banks has received a notice from the New York Stock Exchange that it is in danger of being delisted since the 30-day trading average of its stock has dropped below $1.
Christopher & Banks falls below New York Stock Exchange listing requirements
Retailer says it has a plan to regain compliance.
June 16, 2018 at 12:28AM
The Plymouth-based women's clothing retailer said it is also out of compliance because its average market capitalization over a consecutive 30-day trading period was less than $50 million and its reported stockholders' equity is slightly less than $50 million.
The company said it plans to submit a plan to the stock exchange by July 29 demonstrating how it will regain compliance with the listing standards.
The retailer's shares, which have been hovering at just over $1 for more than a year, dropped below $1 late last month after it reported lower than expected first-quarter earnings. Its sales decreased 3 percent to $85.9 million in the February-to-April quarter and its quarterly loss widened to $5.3 million.
In a statement at the time, Keri Jones, a former Target executive who was appointed as Christopher & Banks' CEO earlier this year, blamed the underperformance on unseasonable weather and lower sales in woven jackets and bottoms. But she said sales trends improved in April and May as the weather stabilized.
As she settles into her role as CEO, Jones said she plans to focus on merchandising and promotions as well as reducing costs.
"I will also be working with my management team to develop a multiyear strategic plan," she said in a statement. "Overall, I look forward to leveraging my background in transforming both growth and challenged businesses to support sustainable long term profitable growth."
Christopher & Banks, which has faced frequent turnover at the top amid various turnaround attempts over the years, has struggled with challenges such as lower mall traffic, the popularity of off-price retailers and the shift to online shopping.
The retailer also recently completed a $13.7 million sale and lease-back of its headquarters in Plymouth.
It operates about 462 stores around the U.S.
Kavita Kumar • 612-673-4113
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