Commerce jeans maker Joe’s Jeans Inc. announced today that Marc Crossman had resigned as president and chief executive and would become a consultant to the company.
Samuel Joseph Furrow Jr., Joe’s chairman and former chief executive, will step in as interim chief executive, the company said in a statement.
Crossman served as chief financial officer before his elevation to president in 2004 and was named chief executive in January 2006. He had held a board seat from January 1999 to July 2014. Furrow, chairman since 1998, was chief executive from October 1998 until December 2000.
The company was notified by the Nasdaq Stock Market in November that its share price had fallen below the minimum required $1 per share level for 30 consecutive days. As a result, it has until May 26 to bring its shares into compliance for at least 10 consecutive days or it will be delisted.
The notice came as Joe’s Jeans reported it had defaulted on loans taken out to fund its $97.6 million purchase of Hudson Jeans in September 2013. The company said it was in negotiations with the lenders on possible changes to the agreements and waiving the defaults.
In its quarterly report filed in October and covering the period ended Aug. 31, Joe’s Jeans reported net income of $267,000 (0 cents a share) on revenue of $53 million. That compares to the $437,000 in net income (1 cent) it posted in the year-earlier period on revenue of $148 million.
Share prices fell 1 cent today, or 2.7 percent, to close at 36 cents.