Xceed Files For Chapter 11

Worldwide Xceed Group, a New York-based i-shop that last month said its ability to “fund current operations” was in doubt, has filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Illinois.

Meanwhile, Xceed has also decided to withdraw its request for a hearing before the Nasdaq Listing Qualifications Panel and now expects its common stock to be delisted from the Nasdaq National Market on Wednesday. The Nasdaq requires stocks to trade at $1 or more for ten consecutive trading days. Xceed is currently trading at 55 cents despite a recent 10-for-one reverse stock split.

In a statement, Xceed said it will continue to operate its business and manage its assets as a debtor-in-possession. The Chapter 11 filing is expected to provide Xceed the opportunity to reorganize its business operations, restructure its debt obligations and obtain relief from pre-petition creditors. At this time, however, the company stated, “it is unlikely that any proceeds will remain for distribution to holders of Xceed’s common stock.”

In other news, Xceed said it sold off certain assets last month, including assets pertaining to its Colorado Springs, Colo., and Chandler, Ariz.-based offices, as well as its stock in its Netherlands subsidiary, Pulse Interactive. According to Xceed, the deals netted the i-shop a combined $1.54 million.