By Dennis Seid/NEMS Daily Journal
In a move to boost its share price, Furniture Brands International has conducted a 1-for-7 reverse stock split.
The move means investors received one share of Furniture Brands for every seven shares they had.
The move was approved by the company’s board of directors earlier this month and went into effect Tuesday.
Shares for Furniture Brands closed Tuesday at 98 cents a share, which means as of today, shares are worth $6.86 each before trading resumes.
Furniture Brands is the parent company of several furniture companies, including Lane Furniture, which has several plants in Northeast Mississippi.
Furniture Brands has battled to stay listed on the New York Stock Exchange.
Companies must maintain a stock price of at least $1; companies failing to do so for 30 consecutive trading days can be delisted from the exchange.
In December, Furniture Brands received a warning from the NYSE. On Feb. 4, the company said it was back in compliance, and shares traded at $1.40.
During the past 52 weeks, Furniture Brands has traded between 88 cents and $1.82.
Before the split, the company had about 56.4 million shares, which now have been reduced to about 8.06 million.
No fractional shares were issued, and the company said it would pay shareholders cash for any fractional shares they owned.
Furniture Brands earlier this month reported a first-quarter loss of $21.2 million, or 38 cents a share, on sales of $254.7 million.