Business

Pier 1 to Shut Extra Shops After eight Immediately Quarters of Declining Gross sales

Pier 1 Imports is making plans a vital building up in retailer closings because the distressed home-furnishings chain seeks to chop prices and switch round operations.

The corporate expects to announce the brand new spherical of shutdowns when it studies effects for its 3rd fiscal quarter subsequent week, in keeping with other people with wisdom of the plan. The corporate targets to restructure out of court docket, partly by means of ultimate retail outlets and the usage of the financial savings to spice up liquidity, mentioned the folks.

Submitting for chapter is an possibility into account if Pier 1 falls in need of its targets, mentioned the folks, who requested to not be recognized since the procedure isn’t public but. The corporate additionally expects to divulge cuts in its debt load, indexed at greater than $300 million in its earlier quarterly document.

Representatives for Castle Value, Texas-based Pier 1 declined to remark. The stocks fell greater than 5%.

Pier 1 posted 8 instantly quarters of declining gross sales and 6 consecutive quarterly losses as customers defected to new e-commerce gamers like Wayfair and traditional giants like Walmart that experience expanded within the class. Turnaround government Robert Riesbeck took over as leader government officer in November, nearly a 12 months after Pier 1 changed a prior CEO and mentioned it might discover strategic choices.

The corporate is operating with a crew of advisers to restructure operations, together with Kirkland & Ellis LLP, AlixPartners LLP, and Guggenheim Companions LLC. Representatives from the ones corporations declined to remark.

Pier 1 misplaced $199 million in its closing fiscal 12 months on $1.55 billion in gross sales. All through its September income name, the corporate mentioned it might shut about 70 retail outlets in fiscal 2020, and that the quantity most probably would building up as talks with landlords advanced. Pier 1 had greater than 950 shops within the U.S. and Canada as of Nov. 4, with 4,000 staff as of March 2019.

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Stocks of the corporate fell 37 cents to $6.23 Friday, down from $31 closing February. Pier 1’s time period mortgage due 2021 was once quoted round 26 cents at the buck, an indication that collectors be expecting to take heavy losses if the corporate recordsdata for court docket coverage.

The store doesn’t personal numerous belongings, with Pier 1 leasing its company headquarters, retail outlets, and nearly all of its distribution and achievement facilities, in keeping with its annual regulatory submitting.

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