The New York Stock Exchange (NYSE) will suspend trading of Kmart Corp. common stock before the market opens on Thursday, and then will begin delisting proceedings with the US Securities and Exchange Commission (SEC).
Kmart had been informed by the NYSE back in July that these steps would be taken because its average share price of its common stock for the past 30 days was below $1. Kmart had six months to meet that requirement, but was unable to.
The Chicago Exchange and the Pacific Exchange are also expected to suspend trading of Kmart stock and begin delisting proceedings.
Kmart management also announced yesterday that it will delay filing its third quarter results until December 23 at the latest, because it needs more time to prepare its financial statements.
Kmart had been informed by the NYSE back in July that these steps would be taken because its average share price of its common stock for the past 30 days was below $1. Kmart had six months to meet that requirement, but was unable to.
The Chicago Exchange and the Pacific Exchange are also expected to suspend trading of Kmart stock and begin delisting proceedings.
Kmart management also announced yesterday that it will delay filing its third quarter results until December 23 at the latest, because it needs more time to prepare its financial statements.
- KC's View:
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Actually, it wasn’t so much that Kmart needed more time to do the arithmetic as it needed to send out to Wal-Mart for a fresh supply of red ink.
Okay, that was a little below the belt. Sorry.
It’s just that when you see stories like these, and then read that both Wal-Mart and Target are having trouble meeting their numbers (see “The Balance Sheet,” below), it is hard to imagine that Kmart is doing any better. In fact, it seems like a pretty good bet that Kmart is digging a hole that it getting wider and deeper.
We reported months ago that Kmart will be closing more stores after the holidays. Now, it’s just a question of how many.
