The New York Stock Exchange on Tuesday suspended trading of HHGregg Inc. shares as it began proceedings to delist the struggling retailer’s common stock.
HHGregg’s shares closed at 23 cents each on the exchange Monday, down 84 percent since the beginning of the year. The shares were trading for as much as $2.63 each less than a year ago and for more than $5 apiece in late 2015.
The stock plunge has come amid a slump that has seen the 61-year-old retailer lose money for 13 straight quarters. The company, which operates 220 stores in 19 states, took a huge loss of $58.3 million loss in its latest quarter as revenue plunged 24 percent.
HHGregg announced Tuesday that it received a notice from the NYSE that said it decided to delist the stock because the company’s “average global market capitalization over a consecutive 30 trading-day period” fell below the $15 million threshold needed to keep it on the exchange. HHGregg said it did not plan to appeal the NYSE’s decision.
The retailer’s stock began trading on the OTC Pink marketplace Tuesday under the symbol HGGG, where they fell another 45 percent, to about 12 cents each.
Bloomberg News reported Feb. 23 that HHGregg was preparing to file for Chapter 11 bankruptcy reorganization as soon as next month.
The retailer announced Feb. 15 that it was pursuing a range of strategic and financial options with the help of outside advisers.
HHGregg was already facing delisting because of the low price of its shares. In early February, the company received notice from the NYSE for failing to meet the minimum listing price requirement. It was warned that it could be delisted.