J. Jill’s stock crashes after approving reverse 1-for-5 stock split

<p>Shares of J. Jill Inc. JILL, + 9.56%, fell 9.9% in pre-market trading on Wednesday, after the struggling womenswear retailer said it approved a split one-to-five reverse stock, aimed at raising the stock price. When the reverse split goes into effect, which is expected on or around November 9, shareholders will receive one new J. Jill common share for every five shares they currently hold. This would effectively increase the share price by a factor of five; Based on Tuesday’s closing price of 75 cents, the inverted split would take the trading price to $ 3.75. “One of the purposes of the reverse stock reverse is to increase the trading price per share of the company’s common stock in order to regain compliance with NYSE continuous listing standards,” J. Jill said in a statement. The stock has not closed above $ 1.00 since February 24. The company had avoided filing for bankruptcy in September after its lenders and shareholders agreed to back a restructuring deal. The stock has fallen 33.2% year-to-date through Tuesday, while the S&P 500 SPX, + 1.78%, gained 4.3%.