FRESNO, Calif.–The New York Stock Exchange will suspend trading of Gottschalks’ stock prior to the market opening on Oct. 27.
The NYSE said it’s taking the action because over a consecutive 30-day trading period, the department store’s average global market capitalization was less than $25 million. Gottschalks plans to appeal the ruling, the retailer said, in a statement.
During the review, Gottschalks will move to have its common stock quoted on the OTC Bulletin Board and will consider all available alternatives.
The retailer will request a review of the determination by the NYSE. Based on the outcome of the appeal process, Gottschalks’ stock could then be delisted from the exchange.
The suspension will not affect its business dealings, and the retailer remains in “active negotiations” with Everbright Development Overseas, Ltd., “which will provide for a significant infusion of capital into our business and create opportunities to enhance our operations,” said Jim Famalette, chairman and chief executive officer of Gottschalks.
“In recent months, the challenges in the macroeconomic environment have intensified due to unprecedented and mounting events in the financial markets. Clearly, these challenges have had an adverse effect on our stock performance.”