The NYSE says that it will no longer facilitate trading in shares of Jackson Hewitt beginning on Monday.
The threat of suspension was first issued on April 12th. The NYSE typically notifies companies that they must keep their shares above $1, and gives a 30-day warning for those companies to rectify the situation. Companies
can execute a reverse split if they act fast, but apparently that wasn't in the cards for Jackson Hewitt.
Shares of Jackson Hewitt fell from 29 cents to 19 cents in overnight trading. As recently as a week ago the shares were trading for almost 60 cents.
Jackson Hewitt has $362 million in outstanding debt against $5 million in cash reserves.
Thousands of people work at Jackson Hewitt, either as tax preparers or as franchise owners. There are more than 6,000 JTX franchises in the United States. Not all of those people will be out of work. Most likely, a bankruptcy will result in a re-organization of the company, rather than its outright demise. Still, these folks will feel pain from the fall of this company.
Shareholders will be unlikely to retain any value in their shares, though. In fact, most debt holders will be lucky to get pennies on the dollar.