Sears Canada Inc. (NASDAQ:SRSC) is going to be delisted from the NASDAQ stock market.
The delisting of Sears Canada Inc. from NASDAQ was made known to the company by the Listing Qualifications Department on June 22 of this year. This will have the delisting take place on July 3, 2017 and it will also include the suspension of trading SRSC stock.
Sears Canada Inc. has the option of appealing the NASDAQ Listing Qualifications Department’s decision to delist its stock. However, the retail company says that it plans to let the delisting take place.
The NASDAQ Listing Qualifications Department notes that there were a couple of factors that had it chose SRSC for delisting. This includes an order from the Ontario Superior Court of Justice on June 22, 2017 to give the company bankruptcy protection. It also says that the company failed to comply with NASDAQ Listing Rule 5450(a)(1).
Sears Canada Inc.’s bankruptcy filing and delisting come as the company struggles to remain relevant. Competition from rivals and online retailers have been eating into its sale. This resulted in the bankruptcy protection and restructuring plans to close about a quarter of its retail locations.
Sears Canada Inc. operates as a separate company from Sears Holdings Corp (NASDAQ:SHLD). Despite this, both are struggling, and SHLD is also closing down many locations. Sears Holdings Corp is the fourth-largest shareholder in SRSC.
SRSC stock is down 5% and SHLD stock is up 2% as of noon Tuesday. SRSC is down 78% and SHLD is down 17% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
