Pier 1 Imports with their plan to close 450 stores
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On Monday, Pier 1 Imports informed it will slash its operations, even closing half of its stores with an aim to survive.
The Fort Worth-based home furnishings retailer reveals their plans to close about 450 of their current 936 stores. According to chief executive officer and chief financial officer Robert Riesbeck, they will need to have their distribution centers to close as well as to cut in corporate expenses, which include reduction in corporate head count.
The number of store to be closed did require approval from its bankers, which Pier 1 said thay it received on this Monday. Accordingly, the company’s sales fell around 13.3% in its third quarter which ended on Nov. 30, and it posted a $59-million loss. To date, Pier 1’s sales had declined 14.3% and they reported a total loss of up to $241 million, nearly double the loss that they got in the third quarter last year. Online home furnishings retailers, which include Amazon and Wayfair, have gained market share. This reason resulted in difficulties for the retailer.
Riesbeck said in a statement that although decisions that impact their associates are never easy, but reducing the number of their brick-and-mortar locations is one of their necessary business decision. Still, the company didn’t reveal how many people will lose jobs. Pier 1 had almost 900 staffs at its Fort Worth headquarters in early 2018, however, that number has decreased since then.
Pier 1 finished the quarter with $158.5 million available to borrow from its bank line of credit and another $11.1 million in cash. Now the retailer has got debt of $258 million and long-term operating lease liabilities of up to $488 million.