Pier 1 to Cut Debt, Close Fewer Stores
By Staff -- Gifts and Dec, 3/24/2009 1:58:00 PM
Fort Worth, TX — Home furnishings retailer Pier 1 Imports Inc. expects to close no more than 80 stores of its almost 1,100, rather than the full 125 underperforming locations the company had been reviewing, according to Home Textiles Today. Liquidation of inventory will offset some of the roughly $4 million in closure charges for the first 16 closing stores.
Pier 1 also released early preliminary fourth quarter and full year financial results. The company lost $29.4 million for the quarter, or 33 cents per share, compared with earnings of $13.7 million a year earlier. Sales fell almost 11 percent to $389.3 million, and comparable-store sales fell 9.7 percent. The company lost $129.2 million for the year, or $1.45 per share, compared to $96 million in the prior year. Sales of $1.32 billion dropped 12.6 percent from year-ago sales of $1.51 billion.
Pier 1 would normally release those results in April, since its fiscal year ended February 28, but it did so early because the company had been warned of potential delisting by the New York Stock Exchange.
Pier 1 plans to sell $79 million of its debt to a subsidiary and save $5 million in rent through real estate negotiations; the company also said it cut year-end inventory to $316 million from $412 million one year ago, a 23 percent reduction.
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