DONNKENNY HOLDERS OK REVERSE SPLIT
NEW YORK — Donnkenny Inc.’s shareholders Tuesday approved a 4-for-1 reverse stock split.
The split, effective April 20, will reduce the company’s outstanding shares to approximately 3.56 million from about 14.23 million. Four shares of common stock will be converted to one share. Fractional shares will be rounded to the nearest whole number, and neither fractional shares nor cash in lieu of shares will be issued.
The split will increase the value of individual shares fourfold and prevent a possible delisting of Donnkenny’s stock, which has failed to meet Nasdaq’s requirement that shares maintain a bid price of $1 or higher. The women’s and children’s sportswear producer’s stock hasn’t traded at $1 or above since mid-March. Its shares closed unchanged at 9/16 in over-the-counter trading on Wednesday.
Donnkenny also announced that Harvey Appelle had resigned as a director of the company, reducing the size of its board to five members.
The company, which Tuesday reported reduced losses of $2.8 million for the fourth quarter, recently said that while sales of its Casey & Max label had increased, the Donnkenny, Victoria Jones and Pierre Cardin brands all had lower revenues.
Last month, the company reported that it would close its remaining domestic manufacturing facilities, eliminating about 240 jobs and producing anticipated annual savings of approximately $4 million.