Culp, Inc. (NYSE: CFI) today announced that on December 11, 2008, the
New York Stock Exchange (“NYSE”) provided formal notice to the company
that it is not in compliance with the NYSE’s continued listing standards
because over a consecutive 30 trading-day period the company’s average
market capitalization was less than $75 million ($32.8 million as of
December 11, 2008), and its most recently reported shareholders’ equity
was below $75 million ($46.5 million as of November 2, 2008, the most
recently reported date).
Under applicable NYSE procedures, unless the NYSE determines otherwise,
the company has 45 days from the date of its receipt of the notice to
submit a plan to the NYSE to demonstrate its ability to achieve
compliance with the continued listing standards within 18 months. The
company intends to submit a plan to demonstrate compliance with the
listing standards within the required time frame. If the plan is
accepted, the NYSE will monitor the company on a quarterly basis and can
deem the plan period over prior to the end of the 18 months if a company
is able to demonstrate returning to compliance with the applicable
continued listing standards (which would mean the company would have to
either increase its shareholders’ equity to $75 million or demonstrate
market capitalization of at least $75 million), or achieving the ability
to qualify under an original listing standard, for a period of two
consecutive quarters. Regardless of this plan, if the company’s average
market capitalization over a 30 trading-day period falls below $25
million, the NYSE is expected to start immediate delisting procedures.
Beginning on or about December 18, 2008, the NYSE will make available on
its consolidated tape an indicator, “BC,” to indicate that the company
is below the NYSE’s quantitative listing standards. The indicator will
be removed at such time as the company is deemed compliant with the
NYSE’s continued listing standards.
About the Company
Culp, Inc. is one of the world’s largest marketers of mattress fabrics
for bedding and upholstery fabrics for furniture.
