Culp Reports Stock Exchange Notice

December 14, 2008  by in UnCategorized   

By Home Furnishings Business in economic news on December 15, 2008 High Point-based Culp announced Friday that it received a notice from that New York Stock Exchange that it has fallen out of compliance with the exchange's listing standards because the company's capitalization fell below $75 million over a 30-day trading period.

The announcement stated that Culp's capitalization was $32.8 million as of Dec. 11, the date it received the notice, and shareholders' equity was $46.5 million as of Nov. 2, the most recently reported date.

Under NYSE procedures, the company has 45 days to submit a plan to demonstrate its ability to achieve compliance with continued listing standards within 18 month, unless the exchange determines otherwise. Company officials said Culp, a maker of bedding and upholstery fabrics, intends to submit a plan to demonstrate compliance within the required time frame, which requires either increasing shareholders equity to $75 million or demonstrating market capitalization of $75 million.

Earlier this month, Culp reported an 18 percent decline in its second-quarter sales and stated it had been hit with non-cash charges that contributed to a net loss of $40.9 million. Officials said the non-cash charges would not have a significant effect on operations or loan covenants.