Pier 1 Imports to Shutter Up to 450 Stores
FORT WORTH, TEXAS — Pier 1 Imports Inc., a home goods retailer based in Fort Worth, has announced its intention to shutter up to 450 stores, which represents nearly half of its current store count of 936.
The retailer also plans to close a select number of distribution centers and reduce its corporate expenses, which includes corporate layoffs. Pier 1 says that its efforts will help right-size the company’s omni-channel operations and allow it to move forward with an “appropriately sized store footprint.”
Pier 1 has hired a third-party liquidator to help manage the store closings. The locations of the closing stores and distribution centers were not disclosed.
Pier 1 (NYSE: PIR) reported that its net sales are down 13.3 percent year-over-year in its most recent quarter ending Nov. 30, 2019. (The company’s fiscal calendar traditionally runs from early March to late February.)
Pier 1 also reported a 15.3 percent reduction in its inventory compared to this time last year. Robert Riesbeck, CEO and CFO of Pier 1, says that the company has been seeking to clear out its “non go-forward” merchandise.
“Looking ahead, we believe that we will deliver improved financial results over time as we realize the benefits of our business transformation and cost-reduction initiatives,” says Riesbeck, who took over as Pier 1’s CEO in November and CFO in July. “Although decisions that impact our associates are never easy, reducing the number of our brick-and-mortar locations is a necessary business decision.”
As of Nov. 30, 2019, Pier 1 Imports had $11.1 million in cash and cash equivalents and $189.5 million outstanding under its senior secured term loan. Bloomberg reports that Pier 1 plans to file for bankruptcy, though that was not included in the retailer’s announcement.
Pier 1’s stock price closed on Monday, Jan. 6 at $3.63 per share, down 67 percent from $11.10 per share a year ago.
— John Nelson