JCP stock is trading lower on Monday as JC Penney (NYSE:JCP) is no longer in compliance with the NYSE listing criteria.
For many decades, retailer JC Penney was one of the giants of the industry. However, over the course of the past half-decade, the company has been on the precipice of bankruptcy due to billions in debts and intense competition in the retail sector.
In a new development, the company announced that the New York Stock Exchange has notified JC Penney that its stock is non-compliant with the listing criteria. Any stock needs to have the average closing price of $1.00 over the course of a trading period comprising 30 days, which JCP stock has failed to do.
Reverse Stock Split?
It goes without saying that this is another blow for the company as it staggers from one problem to the next. JC Penney stated that it is exploring a range of options in order to regain compliance on the NYSE, and one of the options under consideration is a reverse stock split. That being said, the statement added that such a move would need the approval of shareholders.
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JCP stock slide 5% to $0.71 in the early morning session.
However, that is not all. Earlier in January, JC Penney made a major announcement with regard to its operations.
On January 21, JC Penney revealed to a leading news network that the retailer is set to close as many as six of its departmental stores in 2020. The stores in question are located in Missoula, Montana; Myrtle Beach, South Carolina; Valley Stream, New York; Akron, Ohio; Tulsa, Oklahoma; and Raleigh, North Carolina. All the stores in question are going to be closed by April 24.
The closures are a part of the company’s turnaround plans, and it is believed that these closures will help boost sales while remaining profitable. The company revealed that same-store sales actually dropped by 7.5% during the holiday season.
JCP stock has tumbled over 35% over the past month.
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