RoomStore's stock price drops to 1 cent per share

Furniture Today Staff -- Furniture Today, September 1, 2011

RICHMOND, Va. — The RoomStore's stock price fell sharply this week to a value of 1 cent per share, but officials of the Top 100 company have not given any reason.

Company CEO Curtis Kimbrell did not respond to phone and email messages seeking comment.

The Richmond-based retailer's stock closed at 26 cents on Monday but fell to 1 cent Tuesday on light trading, according to the Nasdaq website.

In its latest financial report with the Securities and Exchange Commission, filed Aug. 19 and covering the quarter ended May 31, the company noted that it "is currently evaluating raising additional capital through private equity investment, through strategic combinations and transactions, through revisions to contractual obligations or through the disposition of assets."

The company operates 66 RoomStores in eight states and 83 Mattress Discounters stores in Delaware, Maryland, Virginia and the District of Columbia. RoomStore owns a 65% stake in the mattress chain.

In the May 31 quarter, the first period of its fiscal year, the company reported sales of $67.3 million, down 14.3% from the same period a year earlier, and a loss of $4.6 million, compared with a loss of $2.6 million a year ago.