RoomStore stock price rebounds after dropping to 1 cent
Furniture Today Staff -- Furniture Today, September 6, 2011
There was still no word from the company on what may be causing the price fluctuations. Officials did not respond to requests for comments last week.
RoomStore's stock had closed at 26 cents on Aug. 29 but fell to 1 cent on Aug. 30 in light trading. It closed at 23 cents on Sept. 2.
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.