Trans World Entertainment Seeks Reverse Stock Split to Avoid Delisting

Fiscally-challenged Trans World Entertainment Corp., parent to home entertainment retail chain f.y.e. (For Your Entertainment) and e-commerce facilitator, 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.

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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, which Trans World acquired in 2016 for $75 million, reported a $62 million loss from operations.

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