Celadon Group Inc. reports the company has been notified of possible delisting by the New York Stock Exchange, and that it will soon close a North Carolina facility as it continues to dig out from recent financial turmoil.
Celadon fell out of compliance with listing standards after its auditor, BKD LLP, withdrew a report on the Indianapolis-based carrier’s financial statements for several quarters of 2016. It was given six month to fix the issue.
“The company believes that it will continue to be listed on the NYSE, but there can be no assurance that the company will be able to file the new reports within the initial cure period or any extended cure period,” Celadon said in a statement.
The motor carrier’s stock price dipped as low as $1.30 a share, but has since rebounded by about $1. However, it is still down about 70% so far for 2017.
Earlier this month, Jonathan Russell was named president and chief operating officer of Celadon Group. He is the son of company co-founder Stephen Russell, who passed away last year.
The motor carrier also named Douglas Schmidt as president of Celadon Trucking, the company’s truckload division.
Celadon also noted it is closing a facility in Battleboro, NC, which will result in 127 layoffs. The action will take effect on June 30, according to a filing, and employees have been notified.
On a more positive note, Celadon was named among the winners of the RecruitMilitary Most Valuable Employers (MVE) for Military awards. The MVEs are selected annually based on those employers whose recruiting, training and retention plans best serve military service members and veterans.