Quiksilver Inc. has hired Peter J. Solomon Co. to help it find financing.
The teen chain is working with the investment bank to figure out what its financial options are, including whether it can work out an arrangement with existing lenders to increase its borrowing capacity.
Based in Huntington Beach, Calif., the company has been struggling to turn around its fortunes. Earlier this month, the firm said it was notified by the New York Stock Exchange that its common stock was not in compliance with the exchange’s listing requirements, which calls for a minimum average closing price of $1 a share over a period of 30 consecutive trading days. The company has six months from the July 10 notice to bring its average share price back above $1.
Shares of Quiksilver on Tuesday closed up 3.9 percent to 52 cents.
In March, chief executive officer Andy Mooney was fired and Bob McKnight, who founded the company in 1970 and took it public in 1986, returned to the firm as chairman after retiring less than five months ago.
The news got worse in June when the company rescinded the full-year guidance it provided at the end of 2014 after disclosing second-quarter results. The company said its net loss contracted to $37.6 million, or 22 cents a diluted share, from a year-ago loss of $53.1 million, also 22 cents. Revenues fell 16.1 percent to $333.1 million from $396.9 million.