Rowe not in compliance with American Stock Exchange
Washington Business Journal - by Neil Adler Staff Reporter
The Rowe Cos., which recently filed for Chapter 11 bankruptcy reorganization, says it has received written notice from the American Stock Exchange that it does not meet one of the exchange's continued listing standards.
McLean-based Rowe says it is not in compliance based on the company's voluntary commencement of bankruptcy reorganization proceedings. Rowe and its two operating subsidiaries, Rowe Furniture and Storehouse, filed for Chapter 11 Sept. 18.
The company says it has sustained losses that are so substantial in relation to its overall operations that it appears questionable, in the opinion of stock exchange officials, whether Rowe will be able to continue operations.
The notification from the American Stock Exchange says in order to maintain its listing, Rowe must submit a plan by Oct. 23 advising the exchange of the action the company has taken, or will take, to regain compliance.
Rowe says it has not determined how it will respond to the notification.
As part of its reorganization, Rowe plans to sell its Storehouse chain of furniture stores. Rowe, which has been losing money for two years, says it is selling the Storehouse chain so the company can focus on its core business of furniture manufacturing.
Rowe acquired Atlanta-based Storehouse in 1999.
The company has opened a dozen Storehouse locations in the last year. There are about 75 Storehouse stores, mostly along the East Coast, including 19 in the Washington and Baltimore markets.
Rowe (AMEX: ROW) says business will continue as usual while the company pursues restructuring options.
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