Just as the ink is drying on its first notice from Nasdaq, Fairway Market has received a second warning of losing its Class A listing.
The retail chain’s parent company, Fairway Group Holdings Corp., was hit with another notice of delisting, according to a Form 8-K it filed with the SEC; this time for failure to satisfy the continued listing rule/standard to deliver the a minimum market value of publicly held shares of $15,000,000 for 30 consecutive business days.
This caution from Nasdaq is separate from another notice that the retail chain received on January 7 regarding its failure to meet the bid price requirement, which it must comply with by July 5, 2016 or its Class A common stock will be subject to delisting.
This second form does not have any immediate effect on the company’s standing, according to the form, and Fairway has until August 9, 2016 (180 days from the notice) to comply. If it does, in fact, succeed in closing at $15,000,000 or more for at least ten consecutive business days at any time during that 180-day probationary period, Nasdaq will provide written confirmation that it has regained compliance.
As we reported recently, Fairway announced a possibility of filing bankruptcy in the coming months. The chain initially planned to recover from its string of financial difficulties through the opening of new stores, but now says it is lacking the funds to do so.
“Our current limited cash resources and significant leverage will adversely affect our ability to open new stores,” the company said, according to the New York Post, earlier this month.
If, at the end of the 180 day period, Fairway is still not in compliance with this latest notice, Nasdaq will deliver it a written notice that its Class A common stock is subject to delisting.
While Fairway said it will monitor its market value of publicly held shares for its Class A common stock for the allotted period, as well as remain open to all available options, it added that is cannot provide assurance that it will be able to regain compliance with the Nasdaq minimum value of publicly held shares requirement or maintain compliance with Nasdaq’s other listing requirements, including the bid price requirement.
Keep checking in with DeliMarket News as we report any new details that come to light.
