Pacific Sunwear of California, plagued with plunging sales and falling market value, said in a regulatory notice filed Wednesday with the U.S. Securities and Exchange Commission (SEC) that it had received a deficiency letter from the Nasdaq Global Select Stock Market.
The Anaheim, California-based company was warned that it could be delisted because it had not met its $15 million minimum market value for the last 30 days. Its stock, trading under the symbol PSUN, currently hangs around $0.30.
To regain compliance, the market value of PacSun’s publicly held shares must be $15 million or more for a minimum of 10 consecutive business days at any time prior to April 26, the filing said. In the event that doesn’t happen, “the company will consider whether to apply to transfer its common stock to the Nasdaq Capital Market,” which is reserved for smaller firms with lower levels of market capitalization.
It’s just more bad news for the surf and skate retailer, which delivered a 6 percent decrease in comp-store sales in the third quarter, while net sales slipped from $211.7 million to $195.6 million as athleisure and fast fashion retain their tight hold on teen wallets.
Even a tie-up with reality TV and social media stars Kendall and Kylie Jenner hasn’t helped matters. Late last month, PacSun and the celebrity sisters were sued by Island Company for allegedly copying the lifestyle label’s trademarked logo.