July 26 (Bloomberg) -- RadioShack Corp., the struggling electronics retailer, was notified by the New York Stock Exchange that it’s out of compliance with requirements because its stock has traded below $1 for 30 straight days.
Under the exchange’s rules, RadioShack has six months to get back into compliance by boosting its stock price to at least $1 on the last trading day of the month and having an average closing price at that level over a 30-day period, according to a statement yesterday.
The risk of delisting adds to RadioShack’s headaches as the retail chain attempts a turnaround under Chief Executive Officer Joe Magnacca, who is cutting costs and revamping stores. The Fort Worth, Texas-based company said last month that soft demand for mobile phones contributed to a 14 percent decline in same-store sales last quarter.
Magnacca’s turnaround effort had hit a snag earlier this year when creditors blocked a plan to shut 1,100 underperforming stores, forcing RadioShack to limit closings to as many as 200 instead. RadioShack said last month that it’s continuing conversations about store closings with lenders.
RadioShack shares fell 3.5 percent to 80 cents at the close yesterday in New York. The stock has lost 69 percent of its value this year.
For now, there’s no immediate danger of the stock being delisted, RadioShack said. The company said it would consider options for getting back into compliance.
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