May 14, 2019
Fiscally-challenged Trans World Entertainment Corp., parent to home entertainment retail chain f.y.e. (For Your Entertainment) and e-commerce facilitator Etailz.com, is seeking shareholder approval for a reverse-stock split at the upcoming June 27 annual meeting.
In a filing, TWEC said it is looking to authorize a 1-for-20 shares reverse split to bring its stock in compliance with Nasdaq’s $1-per-share minimum valuation.
The Albany, N.Y.-based company’s stock, which closed May 13 at 35 cents per share, would be valued at $7-per-share following the split.
If approved by shareholders, TWEC outstanding shares of common stock would decrease to more than 1.8 million shares from 36.2 million shares.
TWEC operates more than 200 mall-based f.y.e. locations, down from 540 stores in 2010.
The chain saw store revenue drop 15% to $78.8 million from $92.4 million in the previous-year period. Operating loss narrowed to $1 million from a $2.4 million during the previous-year period.
Store revenue declined 14% to $231.2 million from $268.3 million during the previous-year period.
To offset ongoing declines in packaged media sales, including DVD/Blu-ray Disc movies and music CDs, f.y.e has pushed trend items such as collectibles, action figures, posters, T-shirts and related merchandise.
Meanwhile, Spokane, Wash.-based e-commerce middleman Etailz.com, which Trans World acquired in 2016 for $75 million, reported a $62 million loss from operations.