The Nasdaq Stock Market will delist the common stock of Town Sports International Holdings Inc., according to announcements from Nasdaq and Town Sports International.
The company went public in 2006 and started trading on Nasdaq at that time.
The delisting is effective on Nov. 6, but the company’s common stock was suspended on Sept. 24 and has not traded on Nasdaq since then.
Nasdaq staff determined that Town Sports no longer qualified for listing on the Exchange pursuant to Listing Rule 5101, which means that Nasdaq staff has raised public interest concerns over the degree of control the company has over subsidiary.
Town Sports did not appeal the determination to the Nasdaq Hearings Panel. The Listing Council did not call the matter for review.
Nasdaq will file a Form 25 with the Securities and Exchange Commission to complete the delisting. The delisting will become effective 10 days after the Form 25 is filed.
Town Sports filed for Chapter 11 restructuring on Sept. 14.
On Sept. 16, Town Sports shared in a bankruptcy hearing that it is working on a deal for the purchase of the company through debtor-in-possession financing.
Town Sports agreed to make private-equity firm Tacit Capital and various lenders its lead bidder for the company at no more than $85 million worth of debt forgiveness.
Town Sports owns and operates brands such as New York Sports Clubs, Boston Sports Clubs, Philadelphia Sports Clubs, Washington Sports Clubs, Lucille Roberts and Total Woman.