Circuit City gets warning from NYSE

NEW YORK - In another blow for struggling electronics retailer Circuit City Stores Inc., the New York Stock Exchange warned the company on Thursday that its stock price was not high enough for continued listing.

The NYSE said Circuit City's average closing price has been less than $1 over 30 consecutive trading days as of Oct. 22, falling short of the exchange's requirement.

Circuit City shares have dropped precipitously as its results have weakened amid a deteriorating retail environment and heightened competition from rival Best Buy Co. and others. Since the beginning of the year, shares have lost most of their value, down 93 percent.

The Richmond, Va.-based company has had only one profitable quarter in the past year. It posted a wider second-quarter loss last month with a 13.3 percent decline in same-store sales, and is in the midst of a comprehensive review as it works to operate as a standalone business while exploring strategic alternatives.

Earlier Tuesday, a major shareholder of Circuit City — Classic Fund Management Aktiengesellschaft, a Liechtenstein-based asset management company — said in a regulatory filing that it cut its holdings to 8.2 million shares, or about 4.8 percent, from 9.5 million shares, or 5.6 percent.

In order to regain compliance, Circuit City's common stock share price and the average share price over a consecutive 30-trading-day period must both exceed $1 within six months following receipt of the non-compliance notice.

The company's "CC" symbol will receive a ".BC" indicator to show it is below the continued listing standards. Circuit City has 10 business days to notify the NYSE it will remedy the price deficiency.

Shares rose a penny to end the trading day at 30 cents, but fell a penny in aftermarket electronic trading to 29 cents.

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