Gottschalks to Appeal Trading Suspension

By Staff -- Home Textiles Today, 11/3/2008 12:00:00 AM

Fresno, Calif. —

Fresno, Calif. Western department store chain Gottschalks will appeal a ruling by the New York Stock Exchange to suspend trading of its shares. The NYSE suspended trading of Gottschalks prior to market opening on Monday, Oct. 20, citing a non-compliance: “over a consecutive 30-day trading period, the company's average global market capitalization was less than $25 million.”

Appeals are the usual step in such circumstances.

“During the review, the company will take all necessary actions to have its common stock quoted on the OTC Bulletin Board and will consider all available alternatives,” Gottschalks said. If the appeal is unsuccessful, the NYSE would likely de-list the stock.

Gottschalks noted that “not being listed on the NYSE is not a default under the company's credit agreement. In addition, it will not affect the company's business operations and the company remains in active negotiations regarding its current proposed transaction with Everbright Development Overseas, Ltd.”

That proposed transaction, which included a $30 million buy-in by Everbright and a commitment to source merchandise through Everybright's infrastructure, remains in negotiation since its announcement last month, with no set date for closing.

Shares of Gottschalks had been trading at around $1.20 prior to the suspension, and have been below $2 since July, after slumping all year from a 52-week high of $4.48 last November.