Bon-Ton delisted from NASDAQ, stock trading over the counter this week
The Bon-Ton Stores Inc. has been delisted from the NASDAQ stock exchange after multiple warnings this year that its publicly held shares were not meeting the requirements for continued listing.
Shares of the struggling department-store chain, which has corporate headquarters in York County and Milwaukee, will begin over-the-counter trading Thursday on the OTCQX Best Market. Bon-Ton will maintain it BONT ticker symbol.
A delisting warning first cropped up in March, but was later rescinded. In May, the NASDAQ sent new notices to the retailer that its market value of shares was less than $15 million, which does not meet the requirement for continued listing.
A second notice said the closing bid price for the stock was below $1 per share for 30 consecutive days, missing another requirement to stay on the exchange.
Bon-Ton had until Oct. 30 to regain compliance. It did not and a delisting letter was sent Oct. 31, the company said in a filing with the U.S. Securities and Exchange Commission.
The distressed retail chain has been in the process of restructuring its finances to repay debt and improve its overall liquidity, but a bankruptcy filing could be on the horizon, according to multiple media reports.
Bon-Ton posted a second-quarter net loss of $33.2 million. Officials said they plan to close up to five more locations this year as the chain continues to adjust to a changing retail environment, where more merchandise is being sold online.
There have been recent reports of a private-equity purchase of Bon-Ton assets. And last month, Bon-Ton amended a credit line of $880 million to free up more cash for the upcoming holiday season.
Meanwhile, the company also has gone through some leadership changes this year, most notably replacing its CEO and bringing on a new board chair.