Posted on: Tuesday, December 17, 2002
Kmart loses New York Stock Exchange listing
By Alexandra R. Moses
Associated Press
DETROIT — The New York Stock Exchange will suspend trading of Kmart Corp. common stock, leading to the company's delisting, the bankrupt retailer said yesterday.
The exchange told Kmart that it will suspend trading of company shares before the market opens Thursday. After that, it will begin delisting proceedings with the Securities and Exchange Commission.
Kmart said July 10 that it was notified by the NYSE that its common stock could be subject to a trading suspension and delisting within the next six months.
The retailer said it received the notification because the average share price of its common stock for the past 30 days was below $1.
The NYSE's criteria for continued listing include a requirement that a company's common stock trade at a minimum average share price of $1 over a 30-day period. Kmart had six months to meet that requirement.
Kmart shares closed yesterday up a penny at 58 cents. It hasn't traded above $1 since July.
Kmart said it expects the Chicago Exchange and the Pacific Exchange, on which its common stock also is listed, will suspend trading and begin delisting proceedings, as well.
Kmart's chairman and chief executive officer, James B. Adamson, said the company is working with the New York Stock Exchange.
"In the meantime, we are continuing to work toward our goal of filing a proposed plan of reorganization with the bankruptcy court and emerging from Chapter 11 court protection as soon as practicable," Adamson said in a statement.
Also yesterday, Kmart said it was delaying its third-quarter earnings filing because it needed more time to prepare its financial statements. The earnings were to have been filed by the end of the day.
Kmart said it will file third-quarter earnings — and monthly operating reports for October and November — no later than Monday.
The retailer announced earlier this month that it will have to restate earnings from the first two quarters of this year and for prior years after problems were discovered as part of the company's review of its accounting practices.
The adjustments related to several items, including a software programming error in Kmart's accounts payable system and leasing issues.
Kmart's review of its accounting followed anonymous letters claiming to be from employees that questioned the company's accounting practices. The letters also spawned an investigation of how the company was managed under its former executives.
Kmart filed for bankruptcy on Jan. 22.
