NEW YORK — Unable to meet Nasdaq listing standards, better apparel producer Marisa Christina Inc. said its shares would cease trading on the exchange on Monday and move to over-the-counter trading.
“We are delisting from Nasdaq, but are not deregistering from reporting with the Securities and Exchange Commission at this time,” chairman Michael Lerner said in a statement.
The company’s third-quarter results reflected stockholder equity of $8 million, below the Nasdaq listing minimum of $10 million.
Shares of the firm dropped 14 cents, or 11.7 percent, to close at $1.06 Tuesday.
Losses for the three months ended Sept. 30 came to $5.8 million, or 79 cents a share. This compared with earnings of $1.1 million, or 15 cents, a year earlier. Lower sales to a private label account contributed to a 19.1 percent drop in sales to $8.4 million.
The New York-based firm is considering strategic options, including mergers, acquisitions, divestitures, recapitalizations and share repurchases.
“We will probably have more to say about them by mid-January,” Lerner said during an interview.
Costs to meet the requirements of the Sarbanes-Oxley Act, which compels companies to document their safeguards against financial wrongdoings, also have been pressuring the firm, he said.
“Hundreds and hundreds of companies over the past couple of years have actually delisted [since the act took effect],” Lerner said.
Being publicly held might be one of the firm’s selling points to potential bidders. A person familiar with the company’s situation said a privately held company seeking to get into the public markets could do so by cutting a deal with Marisa Christina.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty