NYSE to Delist Kmart Stock; Retailer Delays Third-Quarter Filing

The New York Stock Exchange will suspend trading of Kmart Corp. common stock, leading to the company’s delisting, the retailer said Monday.

The exchange told Kmart, which filed for Chapter 11 Bankruptcy Court protection Jan. 22, that it would suspend trading of company shares before the market opens Thursday. After that, it will begin delisting proceedings with the Securities and Exchange Commission.

Kmart said July 10 that it was notified by the NYSE that its stock could be subject to a trading suspension and delisting within the following six months.

The NYSE’s criteria for continued listing include that a company’s stock trade at a minimum average share price of $1 over a 30-day period. Kmart shares fell below $1 in June.

The stock closed up a penny Monday at 58 cents, before the announcement.

Kmart said the shares would begin trading in the over-the-counter Bulletin Board market starting Thursday.

Last week, the company warned shareholders that the stock may have no value if and when the company emerges from bankruptcy.

Also Monday, Kmart said it would delay its third-quarter earnings filing because it needed more time to prepare its financial statements. The earnings were to have been filed by the end of the day.

Kmart said it would file third-quarter earnings by Dec. 23.

The retailer announced earlier this month that it would have to restate earnings from the first two quarters of this year and for previous years after problems were discovered as part of the company’s review of its accounting practices.