TSE suspends trading in Moneysworth & Best stock
The Toronto Stock Exchange said Wednesday it has suspended Moneysworth & Best Shoe Care for failure to meet listing requirements.
On Tuesday, the shoe repair chain said it had filed for bankruptcy. It appointed PricewaterhouseCoopers Inc. its trustee in bankruptcy.
Trading in Moneysworth stock on the Toronto Stock Exchange had been halted since Friday morning. In the wake of the company's announcement on Tuesday, a TSE spokesman told CBC News Online that the exchange was still waiting on details from Moneysworth to determine what to do next.
By failing to meet listing requirements, its stock is not allowed to trade on the Toronto Stock Exchange. Shares last traded at 18 cents, down from a 52-week high of $2.65. Moneysworth insiders have been barred by the Ontario Securities Commission from trading their stock in the company for over a month.
The bankruptcy filing came in the wake of months of financial problems.
In May, Moneysworth said that it would miss the deadline to file its 1999 financial statements and that it was trying to restructure its debt and payment obligations.
Moneysworth announced on Tuesday, July 4 that its auditor Grant Thornton LLP was in the final stages of auditing its financial statements. It expects to file the statements by July 19. Moneysworth's previous auditor Deloitte & Touche resigned a few months ago and was replaced by Grant Thornton.
Moneysworth has struggled since it bought U.S.-based Adcor Products Inc. in January 1999 for about $3.3 million US over 13 years and up to four million shares.
Following the acquisition of Adcor, the company took out an additional $1.1 million in debt for working capital purposes.
The company has also been afflicted by resignations of executives and board members. It operates 85 shoe repair outlets and makes, distributes, and markets shoe care and foot care products.