The Container Store Group has received a warning from the New York Stock Exchange after its stock price fell under $1 over a consecutive 30-day trading period.
The notice does not result in the immediate delisting of the company’s common stock. The firm can regain compliance at any time within six months after receiving the warning.
The retailer is considering several options to cure the stock price deficiency, including a reverse stock split, subject to stockholder approval no later than at the next annual meeting of stockholders.
The news came as the company announced poor results for FY23, with consolidated net sales plummeting 19 per cent to $847.8 million and comparable store sales down 19.7 per cent.
The net loss was $103.3 million compared to a net loss of $158.9 million in the prior year. Adjusted EBITDA was $48.1 million compared to $115.4 million in FY22.
Satish Malhotra, CEO and president of The Container Store, said the firm ended the fiscal year with “continued pressure” and is expecting further challenges, especially within the general merchandise offerings.
The board of directors has initiated a formal review process to evaluate strategic alternatives, aiming to maximise both the potential of the business and returns for stakeholders.
Founded in 1978, The Container Store Group has more than 100 locations nationwide and a flagship online store, offering custom spaces, organizing solutions, and in-home services.
