PARTS iD Announces Delisting from NYSE American

Rhea-AI Summary

PARTS iD, Inc. (ID) received notification from the NYSE that it will be delisted and trading of its Class A common stock has been suspended. The company filed for bankruptcy under Chapter 11, leading to the delisting proceedings.

Positive

• None.

Negative

• Delisting from NYSE
• Indefinite suspension of trading
• Filing for bankruptcy under Chapter 11

Insights

Financial Analyst

The suspension and subsequent delisting of PARTS iD, Inc.'s Class A common stock from the NYSE American exchange is a significant event with immediate financial implications. The delisting typically reflects a failure to meet the exchange's listing standards, which could be due to various factors such as financial distress, inadequate market capitalization, or non-compliance with regulatory requirements. In this case, the company's voluntary petition for relief under Chapter 11 indicates severe financial challenges.

Investors and creditors are likely to experience substantial losses as a result of this delisting. The move to Chapter 11 suggests a restructuring process is imminent, which may involve debt reorganization and potential asset sales. Shareholders often see their investments heavily diluted or even rendered worthless in such scenarios. The lack of liquidity resulting from the suspension of trading can also complicate matters for current investors seeking to exit their positions.

From a broader market perspective, the delisting of a company can affect investor confidence, particularly in the sector in which the company operates. However, the macroeconomic impact is generally limited unless the company is a significant player within its industry.

Legal Expert

Filing for Chapter 11 bankruptcy protection allows companies to reorganize their business affairs, debts and assets. It is a critical step for a company in distress, as it provides a legal framework to keep the business operational while negotiating with creditors. The process can lead to a successful restructuring that preserves the company's value and operations, or it can result in liquidation if a resolution is not feasible.

The implications for PARTS iD, Inc. are substantial. The legal costs of bankruptcy proceedings can be high and the outcome uncertain. During this period, the company will need to operate under the supervision of the bankruptcy court, which can limit its strategic and operational flexibility. Moreover, the company's reputation may suffer, potentially impacting future business opportunities and relationships.

It is important for stakeholders to closely monitor the proceedings, as the outcomes will determine the future structure and viability of the company. Creditors, in particular, should be attentive to the reorganization plan, as it will affect the recovery rate of the debts owed to them.

Market Research Analyst

The auto parts industry, where PARTS iD, Inc. operates, is competitive and sensitive to economic cycles. The delisting and Chapter 11 filing highlight the operational and financial challenges within this sector. For competitors, this development could represent an opportunity to capture additional market share, but it also serves as a cautionary tale about the importance of maintaining financial health and complying with regulatory standards.

Consumer behavior, e-commerce trends and supply chain dynamics are critical factors influencing the sector's performance. Companies that successfully adapt to these factors tend to perform better. The situation with PARTS iD may prompt industry players to reassess their financial strategies and risk management practices to avoid similar outcomes.

Long-term industry implications depend on the outcome of PARTS iD's restructuring. If the company emerges leaner and more focused, it could potentially regain competitiveness. Conversely, if it liquidates or downsizes significantly, there could be short-term supply disruptions or price changes within the market.

CRANBURY, N.J.--(BUSINESS WIRE)-- PARTS iD, Inc. (NYSE American: ID) (“PARTS iD” or “the Company”) today announced that it received notification from the New York Stock Exchange ("NYSE") that the NYSE has initiated proceedings to delist the Class A common stock of PARTS iD, Inc. from NYSE American. The NYSE also indefinitely suspended trading of the Company’s Class A common stock effective December 26, 2023. PARTS iD does not intend to appeal the NYSE’s determination.

The NYSE determined that the Company is no longer suitable for listing and will commence delisting proceedings pursuant to Section 1003(c)(iii) of the NYSE American Company Guide in light of the disclosure on December 26, 2023 that the Company filed a voluntary petition for relief under Chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware.

About PARTS iD, Inc.

PARTS iD is a technology-driven, digital commerce company focused on creating custom infrastructure and unique user experiences within niche markets. Founded in 2008 with a vision of creating a one-stop eCommerce destination for the automotive parts and accessories market, we believe that PARTS iD has since become a market leader and proven brand-builder, fueled by its commitment to delivering a revolutionary shopping experience; comprehensive, accurate and varied product offerings; and continued digital commerce innovation.

Cautionary Note Regarding Forward-Looking Statements

All statements made in this press release relating to future financial or business performance, conditions, plans, prospects, trends, or strategies and other such matters, including without limitation, expected future performance, consumer adoption, anticipated success of our business model or the potential for long term profitable growth, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. In addition, when or if used in this press release, the words “may,” “could,” “should,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “predict,” “potential,” “confident,” “look forward,” “optimistic” and similar expressions and their variants, as they relate to us may identify forward-looking statements. We operate in a changing environment where new risks emerge from time to time and it is not possible for us to predict all risks that may affect us, particularly those associated with the COVID-19 pandemic and the conflict in Ukraine, which have had wide-ranging and continually evolving effects. We caution that these forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time, often quickly and in unanticipated ways.

Important factors that may cause actual results to differ materially from the results discussed in the forward-looking statements include risks and uncertainties, including without limitation: the ongoing conflict between Ukraine and Russia has affected and may continue to affect our business; competition and our ability to counter competition, including changes to the algorithms of Google and other search engines and related impacts on our revenue and advertisement expenses; the impact of health epidemics, including the COVID-19 pandemic, on our business and the actions we may take in response thereto; disruptions in the supply chain and associated impacts on demand, product availability, order cancellations and cost of goods sold including inflation; difficulties in managing our international business operations, particularly in the Ukraine, including with respect to enforcing the terms of our agreements with our contractors and managing increasing costs of operations; changes in our strategy, future operations, financial position, estimated revenues and losses, product pricing, projected costs, prospects and plans; the outcome of actual or potential litigation, complaints, product liability claims, or regulatory proceedings, and the potential adverse publicity related thereto; the implementation, market acceptance and success of our business model, expansion plans, opportunities and initiatives, including the market acceptance of our planned products and services; developments and projections relating to our competitors and industry; our expectations regarding our ability to obtain and maintain intellectual property protection and not infringe on the rights of others; our ability to maintain and enforce intellectual property rights and ability to maintain technology leadership; our future capital requirements; our ability to raise capital and utilize sources of cash; our ability to obtain funding for our operations; changes in applicable laws or regulations; the effects of current and future U.S. and foreign trade policy and tariff actions; disruptions in the marketplace for online purchases of aftermarket auto parts; costs related to operating as a public company; the Company’s intention to continue operations during the Chapter 11 Cases; the Company’s ability to conduct its business in an uninterrupted manner during the Chapter 11 Cases; the potential outcome and timing of the delisting of the Company’s Class A common stock; the Company’s ability to obtain timely approval of the Bankruptcy Court with respect to motions filed in the Chapter 11 Cases; and the possibility that we may be adversely affected by other economic, business, and/or competitive factors.

Further information on the factors and risks that could cause actual results to differ from any forward-looking statements are contained in our filings with the SEC, which are available at https://www.sec.gov (or at https://www.partsidinc.com). The forward-looking statements represent our estimates as of the date hereof only, and we specifically disclaim any duty or obligation to update forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240102096613/en/

Investors:

Brendon Frey

ICR

ir@partsidinc.com

Source: PARTS iD, Inc.

FAQ

Why is PARTS iD, Inc. (ID) being delisted from NYSE American?

The NYSE initiated delisting proceedings due to the company's filing for bankruptcy under Chapter 11.

When was trading of PARTS iD, Inc. (ID) Class A common stock suspended?

Trading was indefinitely suspended effective December 26, 2023.

Will PARTS iD, Inc. (ID) appeal the NYSE's determination for delisting?

No, the company does not intend to appeal the NYSE's determination.

Where was the bankruptcy petition filed by PARTS iD, Inc. (ID)?

The company filed a voluntary petition for relief under Chapter 11 in the United States Bankruptcy Court for the District of Delaware.