Larry Thomas
FORT WORTH, Texas — The stock of troubled retailer The Bombay Company fell sharply Thursday and Friday, a

week after the company disclosed that its auditor might attach a “going concern” qualification to the company’s financial statements.

The stock closed Friday at 94 cents per share —  and traded much of the day below 90 cents — on very heavy volume. That represented a drop of more than 5% from its closing price on Thursday, when it went below $1 per share for the first time.

Bombay’s shares have traded at roughly $1.10 to $1.30 per share in recent weeks, and the prices on Thursday and Friday represented new 52-week trading lows.

In an April 20 filing with the Securities and Exchange Commission, the retailer said it would be late filing its annual Form 10-K because it is in the midst of negotiating a new supplemental credit agreement. If it’s not successful getting a new credit agreement, Bombay said its accounting firm will issue an opinion “that expresses substantial doubt about the company’s ability to continue as a going concern.”

In March, Bombay reported a net loss of $52.8 million for the fiscal year ended Feb. 3. That was on top of a net loss of $46.7 million the previous fiscal year.

The company said revenues for the most recent fiscal year were 5.1% blow the previous fiscal year, and same-store sales declined 5.4%.