Teen retailer Aé ropostale Inc. is considering a reverse stock split to shore up the value of its beleaguered shares.

The company's stock, down 75% this year, set a record low on Wednesday at 55 cents a share.

The New York Stock Exchange requires among its listing conditions that a company maintain a price of at least $1 a share.

Aé ropostale disclosed on Wednesday in a regulatory filing it had received a violation notice from the NYSE and will respond by Oct. 13 on how it plans to address the violation, including a possible reverse stock split, which would require shareholders' approval.

Under a reverse stock split a company cuts the number of shares outstanding. While the move doesn't immediately add value to investors, it tends to boost the value of the shares.

American Apparel Inc., which the NYSE recommended consider a reverse stock split, received a noticed on Sept. 23 that its stock, which closed on Wednesday at 13 cents and is down 88% for the year, may be removed from the Big Board.

Aé ropostale is grappling with some of the same issues as many other mall-based teen stores—declining mall traffic, increased competition and higher emphasis on electronics and athletic wear.

It has reported two consecutive years of losses and is projected to end its current fiscal year in the red.

Meanwhile, its leadership remains torn on whether to focus the company on online or brick-and-mortar operations, according to people familiar with the situation.

Write to Maria Armental at maria.armental@wsj.com

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(END) Dow Jones Newswires

September 29, 2015 17:35 ET (21:35 GMT)