NYSE Suspends RadioShack Trading, Who Will Buy Its Locations?
As bond holders and investment bankers pick over the bones of RadioShack, the company has received one last insult. The decades-old retailer, once on the foundations of consumer electronics retail, had trading of its stock suspended by the New York Stock Exchange. RadioShack’s final days will most likely end with an auction of its locations.
The exchange announced:
The New York Stock Exchange (“NYSE”) announced today that the staff of NYSE Regulation, Inc. is taking action to delist the common stock of RadioShack Corporation, Inc. (the “Company”) — ticker symbol RSH — from the NYSE. The NYSE will immediately suspend trading in the common stock.
The decision was reached in view of the fact that the Company does not intend to submit a business plan to address its noncompliance with the NYSE’s continued listing standard in Section 802.01B of the Listed Company Manual that requires maintenance of either (i) an average global market capitalization over a consecutive 30 trading day period of at least $50,000,000 or (ii) stockholders’ equity of at least $50,000,000.
The Company has the right to a review of this determination by a Committee of the Board of Directors of NYSE Regulation. The NYSE will apply to the Securities and Exchange Commission to delist the Common Stock upon completion of all applicable procedures, including any appeal by the Company of the NYSE Regulation staff’s decision.
With its stock trading for pennies, the RadioShack board is not likely to react to the decision.
Rumors reported by the media claim several companies, which might include Sprint Corp. (NYSE: S) and Amazon.com Inc. (NASDAQ: AMZN) might take over some of the RadioShack outlets. A bankruptcy judge, could, in theory void such arrangements. Or, an auction of locations could widen considerably to include other retailers. The range of those would be as broad as another weak wireless provider T-Mobile US Inc. (NASDAQ: TMUS) or another electronic retailer like Best Buy Co. Inc. (NYSE: BBY).
Locations are the last negotiation card RadioShack holds.