Home furnishings and accessories retailer Pier 1 Imports intends to close 450 of its nearly 1,000 stores, slicing its retail footprint virtually in half.
The retailer also said it would close some distribution centers and reduce Pier 1's corporate staff to downsize the company's footprint in a rapidly shifting retail environment.
The news rocked Pier 1's stock Monday, with Bloomberg further reporting the company might consider a bankruptcy reorganization.
Bloomberg also placed the company’s estimated staff reduction at about 40% of all corporate staff.
The Fort Worth-based company, which has stores across the U.S. and Canada, announced the closings and planned layoffs after a particularly harsh fiscal 2020 third quarter. The most recent quarter showed net sales falling 13.3% from year-ago levels, same-store sales down 11.4% year-over-year and a quarterly net loss of $59M, or $14.15 per share.
CEO Robert Riesbeck pointed to pressure from the retailer’s ongoing effort in clearing out unfavorable merchandise and its shift toward omnichannel retail as reasons for Pier 1’s decision to limit its overall footprint.
“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,” Riesbeck said in a statement.
The company employed a third-party liquidator to help Pier 1 oversee the massive store-closing initiative.
News of the retailer’s store closings sent Pier 1’s stock tumbling Monday to a close of $5.18 per share, down about 16% from a close of $6.23 a day earlier.
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