Bakers to appeal latest Nasdaq warning
St. Louis Bakers Footwear Group said that it received a letter from Nasdaq stating that the company hadn’t met the exchange’s $2.5 million minimum stockholders’ equity requirement within the extension period allowed after an earlier notification.
When the company announced its fourth-quarter results last week, Bakers indicated that shareholders equity was $2,140,000 as of Jan. 30.
On. Dec. 14, Nasdaq sent a previous notification letter to Bakers on the same topic, after which the company said it submitted a plan of compliance and on Jan. 21 was granted an extension until March 29.
If the company doesn’t appeal, its stock will be suspended from trading at opening of business April 7, and Nasdaq will file with the Securities and Exchange Commission to remove Bakers securities from listing and registration on Nasdaq.
Bakers said in a regulatory filing that it expects to submit a request for a hearing on or before April 5. The request will stay the suspension of Bakers’ stock, pending a decision by the Nasdaq hearings panel.
The company said it expects to base its appeal upon its improved operating results over the past two years, positive sales momentum in 2010 and positive cash flow.
Bakers said in the filing that it believes it’s likely that its operating results won’t allow it to regain compliance with Nasdaq’s minimum stockholders’ equity requirement this fiscal year, so it can give no assurance that its appeal will be successful.
Swoozie’s going out of business
Atlanta Swoozie’s, which has filed for Chapter 11, is closings its 43 locations.
The stores are offering discounts of up to 30% off its stationery, greeting cards, invitations, gift-wrap, Easter decor, giftware, tabletop items, handbags, jewelry and more.
Swoozie’s filed for bankruptcy protection on March 2, citing the impact of the recession and the underperformance of its 13 stores in the Northeast.
Macy’s repurchases $500 million in debt
Cincinnati Macy’s reported that it has repurchased $500 million face value of senior notes and debentures pursuant to the company’s strategy for early retirement of its debt that matures over the next three years.
The debt repurchases, completed since Jan. 30, were made in the open market for a total cost of approximately $526 million, including expenses related to the transactions. As a result of the debt repurchase, Macy’s has booked $27 million in premium and fees to interest expense in first quarter 2010, which the company expects will be offset during fiscal 2010 by reduced interest expense on the debt repurchased. In addition, the company expects net interest expense to be reduced by approximately $15 million in fiscal 2011.