February 18, 2002-- Home Textiles Today,
Guilford Mills delisted by NYSE
With its shares trading for less than $1 for 30 consecutive trading days, stock in Guilford Mills is being delisted by the New York Stock Exchange for non-compliance with continued listing standards.
With the stock trading at low levels, the market capitalization of the company — the total value of all its outstanding shares — has dropped beneath $15 million for the same period of 30 trading days.
Guilford said the New York Stock Exchange rejected a business plan that detailed how the company would move its stock price higher to meet continued listing requirements.
Trading in Guilford stock was suspended Feb. 11 and will be delisted as soon as routine procedures are completed by the New York Stock Exchange.
Guilford is applying to have its common stock quoted on the OTC Bulletin Board within the next several days, with a new ticker symbol. In the meantime, Guilford common stock is quoted in "The Pink Sheets," a centralized quotation service that collect and publishes market maker quotes for over-the-counter securities.
Given the steep downturn in the U.S. textiles industry over the past several years, accompanied by sinking, if any, profits and falling stock prices, Guilford is just the latest in a string of companies whose stock has been delisted by major exchanges. Earlier, shares of Pillowtex, Burlington Industries and Crown Crafts lost their place on major exchanges, and Dan River (see story below) is currently threatened with delisting.
Dan River submits plan to NYSE
With the New York Stock Exchange threatening to suspend trading and delist its shares, Dan River Inc. said it has submitted a business plan to the stock exchange outlining its plans to boost its stock price to meet continued listing requirements.
The NYSE warned Dan River that it has failed to meet listing criteria, with its stock trading at less than $1 per share for more than 30 trading days, and its market capitalization — the value of all its outstanding shares — falling beneath $15 million for the same period of time.
Under its rules, the NYSE may grant Dan River up to 18 months to bring its stock price and market capitalization back into compliance, and the company said it has formally requested the grace period and filed a business plan outlining the steps it will take to get back on track. The stock exchange has 45 days to accept or reject the Dan River plan.
If the plan is rejected and its shares are delisted, Dan River said it believes "an alternative trading venue will be available."
Dan River shares were trading last week at 37 cents a share, down more than 88 percent from a 52-week high of $3.12.
Gottschalks cuts deal for financing
Gottschalks Inc., the Fresno, CA-based retailer, said it has cut a new financing pact that provides it with up to $165 million in borrowing ability.
The new revolving credit facility has a term of three years, with a maturity date of Jan. 31, 2005. GE Capital is acting as administrative agent for the lender syndicate, which also includes CIT Business Credit.
Target looks to free up capital
Building a war chest to fund potential acquisitions, remodel stores and refinance debt, Target Corp. has filed with the Securities and Exchange Commission to sell up to $4 billion worth of debt securities, preferred and common stock, depositary shares and securities warrants.
Target said it also plans to use the proceeds to finance share buybacks and capital spending.
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