NYSE Regulation Inc. has twice notified management that thecompany is not in compliance with the New York Stock Exchangecontinued listing requirements. That's because the retailer'scommon stock dropped below $1 a share over a consecutive 30-daytrading period and average market capitalization and stockholders'equity fell below $75 million.

During a May 25 conference call, Bombay said that within 10 daysit plans to submit a business plan demonstrating its ability toachieve compliance. If the plan is not accepted, or if Bombay can'tgain compliance, management said it would try to have its stockquoted on the Over-the-Counter Bulletin Board or another quotesystem.

It had previously engaged William Blair & Co. to studyinvestment and other strategic alternatives. In an announcementfollowing release of first-quarter financials, Bombay issued astatement saying William Blair had received non-binding offers tobuy the company.