Specialty retailer Christopher & Banks’ stock is no longer being traded on the New York Stock Exchange after its market capitalization dropped below the minimum $15 million for more than 30 days.
The Plymouth-based women’s apparel company said Thursday it received notification from the NYSE that the delisting process had begun. Market capitalization, commonly called “market cap,” refers to the total dollar market value of outstanding shares.
The retailer’s shares closed at 35 cents on Wednesday, its final day of trading. Its market cap was about $13.4 million.
Christopher & Banks markets to baby boomers at 457 stores across most of the United States. It also operates outlet stores and a women’s plus size division, CJ Banks.
The move by the NYSE, the world’s largest stock exchange, does not affect the retailer’s day-to-day operations, liquidity or access to credit, the company said in a statement. But it is a sign of lingering troubles at Christopher & Banks, which for years has struggled to gain stability and consistent profitability.
In its most recent earnings report, the retailer posted a net loss of $11.3 million, or 30 cents per share, during the fourth quarter, which widened a loss of $8.8 million, or 23 cents per share last year.
In late 2018, the board of directors rejected an unsolicited offer of 80 cents a share from a subsidiary of CSC Generation Holdings, a private Chinese-American venture-capital firm.
Christopher & Banks officials said they are sticking with estimates of a 2% to 3% sales increase in the year ahead, based on “recent improvement in comparable sales trends and continued traction from ongoing initiatives.”
Chief Executive Keri Jones has focused on cutting costs and rebuilding customer loyalty in her first 13 months on the job, The retailer plans to close up to 40 stores by the end of this year.
Christopher & Banks recently hired a national third-party real estate consulting firm to restructure leases, which could save the company $4 million to $7 million each year.
The retailer also has nominated Allison Wing as a director, which will be voted on at the annual meeting on June 26.
Wing is chief marketing and digital officer at Bright Health, a Minneapolis-based health insurance company, but has experience in retail. Wing spent nearly three years as a top executive in marketing and digital operations at Duluth-based Maurices, which in March was acquired by a London-based private-equity group. Wing also founded a multichannel seller and licenser of baby products, Giggle Inc.
A Christopher & Banks official didn’t return a call seeking comment. The retailer is now selling shares on the Pink Open Market under the symbol CBKC.
Pink, an exchange operated by OTC Markets Group, provides a platform for foreign companies that limit their disclosure in the United States, penny stocks and shells, as well as distressed, delinquent and dark companies not willing or able to provide information to investors, according to its website.
Christopher & Banks said it will try to relist its common stock on a national exchange in the future.