Solo Brands has implemented a 1-for-40 reverse stock split as part of its ongoing efforts to regain compliance with New York Stock Exchange listing standards and stabilize the business.
The outdoor lifestyle company, which owns brands including Solo Stove, Chubbies, Isle, and Oru, announced the reverse stock split effective Tuesday. Under the terms of the split, every 40 shares of existing Class A and Class B common stock were automatically combined into one share.
The move represents a critical juncture for Solo Brands, which has faced mounting financial pressures and regulatory challenges over the past year. The company appealed the NYSE’s decision to delist the company in May. Since April, Solo has traded on the OTC Pink Market under the symbol “DTCB.” While the appeal process continues, the stock remains listed on the NYSE despite the trading suspension. The reverse stock split aims to increase the per-share price to levels that meet exchange requirements.
In regulatory documents filed with the SEC, Solo Brands acknowledged uncertainty about the outcome. “There is no guarantee that the Company will be successful in its efforts to resume trading or remain listed on the NYSE,” reads the filing.
Financial Restructuring and Leadership Shift
The reverse stock split comes alongside significant financial restructuring efforts and new leadership. Solo Brands negotiated an amendment to its credit agreement with JPMorgan Chase Bank in June, and John Larson, who had served as interim CEO since February 2025, was appointed to the permanent CEO position. Larson replaced Chris Metz, who stepped down after one year leading the company.
Earlier in 2025, Solo Brands warned investors about substantial doubt regarding its ability to continue as a going concern. The company cited multiple factors contributing to its financial stress, including heavy debt burdens, declining sales performance, and the impact of tariffs on its business operations.
