NYSE delists GNC stock after Chapter 11 filing

The move won't affect GNC's operations as it proceeds with restructuring plan.

Victoria A.F. Camron, Digital content specialist

June 30, 2020

1 Min Read
GNC files for Chapter 11 bankruptcy to reorganize or sell the business

GNC Holdings Inc. stock closed at 55 cents per share Monday—its last day of trading on the New York Stock Exchange.  

The New York Stock Exchange delisted the global health and wellness company a week after it filed for Chapter 11 protection in the U.S. Bankruptcy Court. NYSE's Regulation staff notified GNC executives on June 25 that it would delist the shares because "GNC is no longer suitable for listing" under the Exchange's standards.

The Exchange typically delists companies that have filed for bankruptcy, whether it's under Chapter 11 or Chapter 7.

GNC won't appeal the decision, Chief Financial Officer Tricia Tolivar informed the Securities and Exchange Commission on Tuesday.

"The Company expects that the trading of its common stock will transition to the OTC [over the counter] Bulletin Board or 'pink sheets' market shortly. The transition to over-the-counter markets will not affect the Company’s business operations or its reporting requirements under the rules of the Securities and Exchange Commission," Tolivar wrote in the SEC filing.

Even if GNC had not filed Chapter 11—it intends to sell to its largest stockholder or restructure its debt—the Exchange likely would have delisted the company this week.

As of April 21, GNC's 30-day average share price, 30-day average market capitalization and stockholders' equity all fell below the Exchange's standards, the Exchange told the company on April 28. The company had 45 business days to present a plan to increase its share average, but it's not clear if it did so. That deadline was June 24.  

Related:GNC files for Chapter 11 bankruptcy to reorganize or sell the business

GNC's next court hearing is scheduled for July 22.

About the Author(s)

Victoria A.F. Camron

Digital content specialist, New Hope Network

Victoria A.F. Camron was a freelance writer and editor contracted with New Hope Network from 2015 until April 2022, when she was hired as New Hope Network's digital content specialist—otherwise known as the web editor.

As she continues the work she has done for years—covering the natural products industry for NewHope.com and Natural Foods Merchandiser; writing up earnings calls and other corporate news; and curating roundups of trends and information for the website—she is thrilled to be an official part of the New Hope team. (She doesn't mind having paid holidays and vacations again, though!) Victoria also compiled and edited newsletters, and served as interim content director for Delicious Living in 2016.

Before working as a freelancer, she spent 17 years in community newspapers in Longmont, Colorado, and St. Charles and Wheaton, Illinois. Victoria is a Colorado native and a graduate of Metropolitan State College of Denver.

Subscribe and receive the latest updates on trends, data, events and more.
Join 57,000+ members of the natural products community.

You May Also Like