Borders Books Delisted From NYSE
Okay, it hasn’t happened yet but odds are Borders Books will be delisted from the NYSE early in 2009. The criteria for being delisted is generally a stock that has an average closing price less than $1 per share for 30 consecutive days.
Borders Group Inc. (BGP) fell below the $1 per share mark on December 2, 2008 and hasn’t even sniffed the $1 mark since. As of the writing of this post Borders Group Inc. is sitting at $0.38.
Getting delisted doesn’t mean the company’s shares can’t still be traded on other exchanges or that it will automatically go bankrupt. But delisting certainly doesn’t make things easier and is a clear signal of a company in distress.
I expect to see an announcement of a delisting notice issued to Borders in January. Coupled with potentially poor 4th quarter results and the future of Borders Books is certainly murky. More and more people, including Borders employees, will be asking: ‘Is Borders going out of business?‘
