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Sears stock hit its lowest on Friday as its stock traded at under $ 1. With such a low price per share, Sears may be removed from the Nasdaq list.
The Nasdaq Stock Exchange requires a $ 1 share price and will inform a company that trades below that threshold for more than 30 consecutive days. At this point, the Nasdaq can offer a 180-day compliance period to the probationary period, with a second 180-day probationary period sometimes allowing stocks to return to a compliant price range.
If this news seems to disturb shareholders, it might not be totally unexpected. Sears weathered several years of volatility as the company struggled to avoid bankruptcy filings and shut down retail outlets across the country. Just over a decade ago, Sears shares reached a record high in April 2007, just two years after CEO Eddie Lampert merged the merger of Sears and the then bankrupt Kmart.
Lampert, chief executive and chairman of the Sears board, proposed Monday a restructuring plan that would avoid bankruptcy. Lampert also manages the ESL Investments hedge fund, which holds a majority stake in Sears. According to Lampert's plan, Sears could sell $ 1.75 billion in assets (including $ 1.5 billion in real estate) to reduce the company's debt to $ 1.24 billion. Sears faces a $ 134 million payment due Oct. 15.
Sears has closed hundreds of Sears and Kmart brick and mortar stores over the past year in an effort to stay afloat. At the beginning of September, Lampert also explained another expense at the origin of the crisis: retirement pensions.
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