Borders faces possible delisting from New York Stock Exchange
Ann Arbor-based Borders Group Inc., which is nearing a possible bankruptcy filing, said today it had been warned its stock is at risk of dropping off of the New York Stock Exchange due to its poor financial performance.
NYSE Regulation Inc. told Borders on Thursday that it is on a six-month probationary period of sorts in which the book store chain must boost its stock to an average share price of at least $1 over the course of a month.
If Borders' stock price doesn't top that threshold after six months, the stock could be delisted from NYSE.
The warning is standard procedure for companies whose stock has fallen below an average of $1 for a month.
Borders stock (NYSE: BGP) closed at $0.39 today, pennies away from its all-time low.
The company, which has delayed payments to vendors and landlords in hopes of securing new financing arrangements, may file for bankruptcy in the coming weeks. That would likely wipe out the equity of stockholders.
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
whatsupwithMI
Mon, Feb 7, 2011 : 1:47 a.m.
It just seems wrong to me, as a personal opinion, that Borders- a company with much income, must assets, and much regard in the industry would have to be delisted--- when a local Ann Arbor biotech "startup" with almost _20-years_ on the NYSE without NAY product produced, nor any income whatsoever, shall remain on said Exchange. Its a crazy world we live in eh? As long as it all makes business sense I guess. Real world can fly out the window.
Arieswoman
Sun, Feb 6, 2011 : 12:31 a.m.
My nephew lost his job over a year ago at Borders. While I feel sorry for him I just told him that I cannot justify books costing $30 when I can get good used books at Amazon that are like new! Sorry Borders and all the other book retailers! If I want a book to keep I always check Amazon. A book I just want to read I love my AADL.
Ypsi Mama
Sat, Feb 5, 2011 : 2:58 p.m.
It always seemed to me that Borders got too big for its britches. I preferred it when it was that quirky bookstore down on State St. Still, I'm sorry to see it faltering and can't help but think of the people who are losing their jobs as the ship is going down.
sbbuilder
Sat, Feb 5, 2011 : 2:46 p.m.
Borders is suffering the classic Chinese 'Death of a Thousand Cuts'. "A slow death by the torture of many small wounds, none lethal in itself, but fatal in their cumulative effect." Perhaps a better approach: Seppuku. Decidedly more painful in the short run, but much quicker, and with honor.
jondhall
Sat, Feb 5, 2011 : 2:06 p.m.
I love it , no one likes these guys, so they fail , books a million been servicing my book needs for years at a 50% average discount !
timjbd
Sat, Feb 5, 2011 : 1:17 p.m.
"Sorry Borders it's called competition." Would you pay nothing extra to support the local economy?
Peter
Sat, Feb 5, 2011 : 4:32 a.m.
The business of selling information has been hard lately. Ask the Ann Arbor News.
stonecutter1
Sat, Feb 5, 2011 : 5:53 a.m.
Don't talk bad about AA.com, or they will ban you!
JimB
Sat, Feb 5, 2011 : 2:46 a.m.
Payback for cancelling my order, with no notice, after 3 months and many weekly e mails telling me my order way on it's way.
catfishrisin
Sat, Feb 5, 2011 : 2:31 a.m.
Payback for charging $24.95 for a CD. Sorry Borders it's called competition.