Out of Compliance: How Delisting Distracts From a Turnaround

December 04, 2019

A retailer’s poor sales can send shares spiraling down as investors lose confidence. If the stock price gets below a certain threshold (usually $1) for too long a time, the retailer gets another item for its to-do list — a notice from the stock exchange that the price needs to recover or they’re in danger of getting kicked off.

However it happens, dealing with a delisting notice is just one more headache for a company that is almost certainly already struggling, according to Alon Kapen, a partner at law firm Farrell Fritz, who heads its emerging companies and venture capital practice group​ and has helped companies climb back into the good graces of stock exchanges.

“All this is an enormous distraction to management at a time when they’re under enormous business pressure, when they’re shutting down stores and facing the realities of the retail industry,” he told Retail Dive in an interview.

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  • Related Practice Areas: Emerging Companies & Venture Capital
  • Featured Attorneys: Alon Y. Kapen
  • Publications: Retail Dive