- Party City received notification from the New York Stock Exchange on Dec. 15 that the company is no longer in compliance with NYSE continued listing criteria requiring an average closing share price of at least $1.00 over a 30 trading-day period.
- Party City has six months to regain compliance with the NYSE’s minimum share price requirement.
- The company will continue to be traded under the ticker PRTY during this period, but will have an added designation of “.BC” to indicate the status of the stock as “below compliance” with the NYSE continued listings standards. The indicator will be removed when the company regains compliance.
Party City faces delisting in the middle of a tumultuous time for the retailer.
The company earlier this month reportedly engaged attorneys to address liquidity issues and help with restructuring.
In its latest earnings the retailer reported net sales of $502.2 million, down 1.6% year over year, and a net loss of nearly $373 million for the quarter. Party City lowered its EBITDA guidance from a high of $300 million forecast in February to a high of $150 million as supply chain costs cut into its margins.
The retailer has repeatedly pointed to problems with securing helium sources and paying higher prices as points of friction.
In order to regain compliance with the New York Stock Exchange, Party City must have a closing price of at least $1.00 per share and an average closing price of at least $1.00 per share over a 30-trading day period.
Over the past year, Party City stock reached a high of $6.55 in January. At the time of publication stock was trading at 39 cents.
In early November, Party City announced that it would reduce its corporate workforce by 19% through job cuts and by not backfilling open roles.
By mid-November, Fitch downgraded Party City to CCC from B- citing “rapid deterioration” in the company’s operations and liquidity and calling its capital structure “likely untenable.”