Canton, Mass. — Tweeter Home Entertainment Group will be de-listed from the Nasdaq stock market exchange as a result of having filed for Chapter 11 bankruptcy protection last week.
Tweeter does not intend to appeal Nasdaq’s determination, which was based on the exchange’s marketplace rules, and trading of the company’s stock will be suspended at the opening of business on Thursday, June 21.
A Form 25-NSE will also be filed with the Securities and Exchange Commission (SEC), which will remove the Tweeter’s securities from listing and registration on the exchange.
The ailing A/V specialist filed for bankruptcy protection on June 11 amid a cash-flow crunch prompted by stalling sales and mounting costs from lease termination agreements. Chapter 11 status allows Tweeter to walk away from its lease obligations and tap into a $60 million debtor-in-possession credit facility from GE Capital. The liquidity will let the chain continue day-to-day operations and possibly forge a sale agreement with a private equity investor that could close before August.