Borders Group Inc. (BGP) said Friday the New York Stock Exchange
warned that the price of its stock needs to rise above $1 a share
in the next six months to continue its listing.
Shares were down 2% at 39 cents in after-hours trading. Through
the close of trading Friday, the stock has declined 67% in the last
year, with shares particularly struggling in recent weeks as
investors question the bookseller's ability to restructure outside
bankruptcy court.
The NYSE, a part of NYSE Euronext (NYX), notified Borders
Thursday that the average closing price of its stock has failed to
meet a $1 minimum over the last 30 trading days. In order to
continue its listing, the company has six months to return the
stock price to compliance.
Earlier this week, Borders said it would delay January payments
to vendors, landlords and others to preserve liquidity as it
restructures its finances. Some reports have cited sources familiar
with the matter as saying the company is preparing a filing for
Chapter 11 bankruptcy protection.
The company has struggled with dropping sales, as the
bookselling industry at large grapples with the growing popularity
of digital books.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com