Dedham retailer iParty stock could face delisting due to low price
The Dedham retailer iParty Corp. said its stock, which has traded at 25 cents or less for a year, could be delisted if it doesn’t take action to raise the share price by May 20, 2013.
The seller of party goods said Friday that it has received a letter from the New York Stock Exchange market officials saying that iParty stock is not in compliance with exchange guidelines due to its “low selling price for a substantial period of time.”
Shares were trading at 16 cents at midday Friday.
The company has 54 stores, mostly in New England, and five in Florida. The largest concentration of stores is in Massachusetts, where there are 28. Additionally, iParty sells its goods online.
The company has reported operating losses of $3.2 million for the first nine months of 2012. Its revenues in that period were $52.2 million, up 2 percent from the same period in 2011.
The company disclosed earlier this month that it had formed a special committee of its independent board members to address the stock’s rock-bottom trading level. It also hired the investment bank Raymond James & Associates Inc. to help in “exploring a broad range of financial and strategic alternatives to enhance shareholder value.”
The exchange letter said that if iParty does not effect a reverse stock split to boost its stock price by May 20, it could be delisted. Shareholders have already approved a reverse split but the company has not acted on that option yet.Beth Healy can be reached at email@example.com.