Borders Group Inc. (BGP) said Friday the New York Stock Exchange warned that the price of its stock needs to rise above $1 a share in the next six months to continue its listing.
Shares were down 2% at 39 cents in after-hours trading. Through the close of trading Friday, the stock has declined 67% in the last year, with shares particularly struggling in recent weeks as investors question the bookseller's ability to restructure outside bankruptcy court.
The NYSE, a part of NYSE Euronext (NYX), notified Borders Thursday that the average closing price of its stock has failed to meet a $1 minimum over the last 30 trading days. In order to continue its listing, the company has six months to return the stock price to compliance.
Earlier this week, Borders said it would delay January payments to vendors, landlords and others to preserve liquidity as it restructures its finances. Some reports have cited sources familiar with the matter as saying the company is preparing a filing for Chapter 11 bankruptcy protection.
The company has struggled with dropping sales, as the bookselling industry at large grapples with the growing popularity of digital books.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; firstname.lastname@example.org