Gift marketer Lenox Group will have its stock traded on the OTC Bulletin Board following a decision by the New York Stock Exchange to delist the firm next Friday, the firm announced.
The company has failed to meet the NYSE standard requiring it to maintain an average global market capitalization of $25 million over a consecutive 30-day trading period. Lenox has $16.5 million, according to published reports.
Lenox does not intend to challenge the NYSE decision.
The company announced earlier this year that it would seek strategic alternatives.
“We expect our equity to continue to be actively traded by and for our shareholders and are taking steps to facilitate the trading of our common stock on the OTC Bulletin Board,” said Marc Pfefferly, interim CEO of Lenox. “We will continue to operate and report as a public company and do not believe that this development will affect our ongoing efforts to identify and evaluate strategic alternatives.”
Meanwhile, Lenox posted a $9.1 million net lose for the first quarter, compared with a loss of $13 million for last year. (Direct Newsline-May 7, 2008). Sales totaled $74.4 million, down from $86.4 million last year.
Lenox sells collectible and giftware products via catalogs and on the Internet. It also sells through wholesalers.
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