RadioShack has been warned that its stock will be delisted from the New York Stock Exchange if its average closing price doesn’t rise above $1 in the next six months, the company said Friday.In a regulatory filing, the Fort Worth-based consumer electronics retailer said it received the notice on Thursday about the possible action. The delisting process begins when the company’s average closing price falls below $1 a share for 30 consecutive trading days. The New York Stock Exchange gives companies six months to regain compliance.“The company intends to notify the NYSE that it intends to cure the issue and regain compliance,” RadioShack said in a statement. Its stock will continue to trade on the New York Stock Exchange in the meantime.In the Securities and Exchange Commission filing, RadioShack said it will “actively monitor” the closing price and “consider available options to resolve the deficiency.”RadioShack shares (ticker: RSH) fell below $1 on June 20, closing at 92 cents. The price rose to 99 cents on June 30, but has steadily declined since. Within the last year, the stock has traded as high as $4.36 a share.RadioShack closed at 80 cents on Friday, down 3 cents. The stock has tumbled this year after the company reported big losses following a disappointing holiday sales season and was then blocked by lenders on its plan to close up to 1,100 of its 4,300 company-owned stores. Under terms of its loans, it can only close up to 200 stores a year.The company has lost ground in recent years against heightened competition from big-box discounters, phone companies and websites. Early last year, the board hired former Walgreens executive Joseph Magnacca as chief executive officer; he has been remodeling stores and updating product lines to meet consumer demand. RadioShack recently partnered with PCH International, a development company that works with start-ups to bring new technology products to market.In May and June, the stock price took big hits after lenders balked at the store closing plan and the retailer reported a $98.3 million loss for the 13 weeks ended May 3, much worse than analysts predicted. The company can regain compliance during the six-month cure period if it has a closing price of at least $1 on the last trading day of any month, and if it has an average closing share price of at least $1 over the 30-day trading-day period ending on the last trading day of that month, or the end of the six months.
Sandra Baker, 817-390-7727 Twitter: @SandraBakerFWST