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