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Birks Could Face Delisting After Losses
Aug 17, 2020 11:06 AM
By Rapaport News
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RAPAPORT... The New York Stock Exchange (NYSE) has told Birks Group it is no longer compliant with its listing rules, after the Canadian jeweler incurred losses for four consecutive fiscal years.
NYSE American, the exchange’s submarket for smaller companies, requires its members to maintain stockholders’ equity — the value of assets minus liabilities — of at least $4 million. A company breaches the rules if it misses that target and also reports losses from continuing operations or net losses for three of its four most recent fiscal years.
Birks must submit a plan by September 6 outlining how it intends to get back in line. The company is still trading on NYSE American, but will face delisting if it doesn’t become compliant by February 6, the retailer said in a statement last week, citing a notice it had received from the exchange.
Stockholders’ equity at Birks came to $2.5 million for the fiscal year that ended March 28. The company has also recorded losses from continuing operations in each of the past four fiscal years, although it turned a net profit in two of those years, it continued.
The jeweler’s net loss decreased 32% to CAD 12.8 million ($9.7 million) in the latest fiscal year as the reopening of renovated stores boosted sales. The coronavirus barely affected performance for the 12-month period, as the outbreak only intensified during March.
Image: A Birks store. (CNW Group/Birks Group)
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Tags:
birks, birks group, Canada, Jewelry, New York Stock Exchange, NYSE, NYSE American, Rapaport News, retail
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