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Rite Aid delist not de-truth
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January 12, 2000: 6:47 p.m. ET
New York Stock Exchange says it has not delisted struggling retailer
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NEW YORK (CNNfn) - Shares of struggling retailer Rite Aid took a sound drubbing Wednesday following a report that the New York Stock Exchange was about to delist the nation's third-largest drugstore chain.
The stock analyst who reported an imminent delisting later retracted the statement.
By the end of the day, the Camp Hill, Pa.-based company's stock had dropped more than 25 percent, falling to 7-7/8—a mere shadow of Rite Aid's 52-week high of 51.
The incident came a day after the Camp Hill, Pa.-based company announced it had reached an agreement with creditors to defer financial reporting for about six months as the company deals with its financial troubles.
On Wednesday, Lehman Brothers analyst Meredith Adler cut her rating on the stock to "neutral" from "buy" and said the exchange was expected to delist the stock.
Monitoring the situation
The NYSE postponed trading for nearly two hours after hearing the report of a possible delisting. The exchange issued a statement saying it is monitoring Rite Aid's situation, but "it has not determined at this time" to delist the company. A spokeswoman for the exchange declined to comment beyond the statement.
Adler later retracted her statement about the delisting.
"We have no reason to believe we are being delisted," said company spokeswoman Karen Rugen.
John Heine, a spokesman for the Security & Exchange Commission declined to comment on Rite Aid's case.
Glenn Curtis, an equity analyst for New York-based InsiderTrader, noted the company does have 3,800 stores nationwide and $13 billion in annual sales.
"I have a great impression of Rite Aid," Curtis said. "All that being said, it will take a tremendous effort by the company to rebuild investor confidence. The stock is going to be underwater some time until they can prove themselves."
Rite Aid has taken a series of blows recently, including the resignation of its auditors and the replacement of its management team. 
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