ST. LOUIS – Furniture Brands International said Friday that it will voluntarily delist its common stock from the New York Stock Exchange by Tuesday.
Shares of the company trade under the symbol “FBN,” and the company said it would trade on the OTCQB Marketplace.
Furniture Brands is the parent company of Lane Furniture, which employs 1,300 people in Northeast Mississippi, with manufacturing plants in Belden and Saltillo, offices and distribution center in Verona and a distribution center in Wren.
Furniture Brands said the move was “driven by a number of factors, including its non-compliance with the NYSE’s market capitalization and stockholders’ equity requirements.”
“The company made the decision to voluntarily delist from the NYSE because it believes it will not be able to comply with the NYSE’s continued listing criteria,” Furniture Brands said in a statement. “The company believes that this voluntary transfer to the OTCQB will provide greater certainty and assist in an orderly transition.”
The company’s market cap – the value of shares equal to the share price times the number of shares – is a little more than $5 million. The NYSE’s market cap requirement is $50 million. Also, a company’s shares must trade at $1 or more for at least 30 days. Last December, the NYSE sent a delisting notice to the company after its shares had fallen below $1 for an extended period. It was able to remain on the exchange, but then received a delisting warning last month when its market cap fell below the requirement.
In late May, Furniture Brands conducted a 1-for-7 reverse stock split that raised its shares to nearly $7. But shares have plummeted since, and on Friday, it closed at 73 cents.
Two weeks ago, it announced another quarterly loss, and an analysts predicted Furniture Brands’ bankruptcy filing as “imminent.”
On Monday, the company announced it had hired a team of restructuring attorneys and advisers.
Furniture Brands said it expects to notify the Securities and Exchange of its withdrawal of its NYSE listing on or before Tuesday, and that it will begin trading the next day on OTCQB.
Following the transfer, Furniture Brands said it will continue to file the same periodic reports and other information it currently files with the SEC.