JC Penney (JCP) has received another warning that it may be delisted from the New York Stock Exchange (NYSE) after its share price dipped below $1 for 30 consecutive days. The retailer was previously warned about a delisting in August 2019 but regained compliance again in December 2019.

JC Penney released a statement about the delisting, which it said it has six months to regain compliance with. The company also “intends to pursue measures to cure the share price non-compliance, including through a reverse stock split of the Company's common stock, subject to stockholder approval, if such action is necessary to cure the non-compliance.”

The company saw its share price slide nearly 4.5% as of mid-morning on Monday. JC Penney has been struggling to turn its operations around using new techniques such as adding secondhand clothing retailer ThredUP within its stores and adding new apparel collections such as the St. John’s Bay Outdoor line for men.

The retailer has also tried new store formats and closed some locations as it looks to maintain a foothold in the market. The company announced that it was closing six more stores by April 24, as well as a call center in Lenexa, Kansas, where 243 employees were laid off.

With comparable sales down 7.5% over the holiday shopping season, JC Penney reaffirmed its guidance for fiscal 2019, saying that it anticipated comparable sales to be in the range of 7% to 8% with EBITDA to exceed $475 million. The retailer also expects to be free cash flow positive by fiscal year-end.

Under the warning from the NYSE, JC Penney said its business will not be interrupted nor will it cause a default of debt.

Shares of JC Penney stock were down 4.48% as of 11:25 a.m. EST on Monday.

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People exit from JCPenny store at Herald Square on Nov. 25, 2016 in New York. KENA BETANCUR/AFP/Getty Images
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