Dive Brief:
- Vince Holding Company could be delisted from the New York Stock Exchange after the company received a written notice last week that it “did not presently satisfy NYSE’s continued listing standards,” per a press release.
- Vince’s 30-trading day average market capitalization was about $22.6 million as of May 5 and its latest stockholders’ equity was about $41.8 million as reported in February, per the release. The NYSE requires both figures to be at least $50 million to qualify for continued listing on the exchange.
- Vince has 45 days following the notice to submit a business plan that demonstrates compliance with NYSE standards. The company said it expects to present a timely submission of such a plan, per the release.
Dive Insight:
While Vince works on its business plan, the company’s common stock will continue to be listed and traded. In addition, the “current noncompliance with the standard” has no impact on Vince’s ongoing business operations or its reporting requirements with the Securities and Exchange Commission, per the release.
Vince and its communications advisory company, ICR, did not respond to requests for additional comments by press time.
The notice comes as Vince undergoes a series of corporate changes.
In January, P180 acquired a majority stake in Vince from affiliates of Sun Capital Partners, which helped Vince reduce its debt by about $27 million. The deal also returned P180 co-founder Brendan Hoffman to the CEO position at Vince, a role he previously held from 2015 to 2020.
Then John Szczepanski, who joined Vince as chief financial officer in January 2024 after spending more than 18 years at Ralph Lauren, exited the company in March.
Yuji Okumura was named CFO in April, after becoming interim CFO following Szczepanski’s departure. Okumura was previously the company’s controller.
In its latest earnings report, released earlier this month, the company posted a nearly flat 0.2% revenue increase for fiscal 2024. Okumura said in a release that the company expected year-over-year net sales to decline about 5% in its first quarter of 2025.
“Given the increased uncertainty related to the potential impact and duration of current tariff policy, the company is not providing guidance for the full year fiscal 2025,” Okumura said, adding that Q1 guidance did not assume a material impact from ongoing trade uncertainty.
In 2023, Vince sold its intellectual property to Authentic Brands Group for $76.5 million in cash, plus a 25% stake in a newly created subsidiary, ABG Vince, that controls the assets. Following that deal, Vince entered into an exclusive, long-term licensing agreement with Authentic for wholesale, retail and e-commerce operations.
