J.Jill’s stock tumbles after approving 1-for-5 reverse stock split

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Shares of J.Jill Inc. tumbled 9.9% in premarket trading Wednesday, after the struggling women’s apparel retailer said it approved a one-for-five reverse stock split, aimed at lifting the trading price of the stock. When the reverse split becomes effective, which is expected on or about Nov. 9, shareholders will receive one new share of J.Jill common stock for every five shares of they currently own. That would effectively lift multiply the price of the stock by five; based on Tuesday’s closing price of 75 cents, the reverse split would lift the trading price to $3.75. “The reverse stock split is intended to, among other things, increase the per share trading price of the company’s common stock in order to regain compliance with the NYSE’s continued listing standards,” J.Jill said in statement. The stock hasn’t closed above $1.00 since Feb. 24. The company had staved off filing for bankruptcy in September after its lenders and shareholders agreed to support a restructuring deal. The stock has tumbled 33.2% year to date through Tuesday, while the S&P 500 has gained 4.3%.
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