Pier 1 plans to shut half its stores

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Pier 1 plans to shut half its stores
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Pier 1 is cutting staff and considering bankruptcy

Pier 1 Imports Inc. is planning to dismiss about 40% of its headquarters staff and shut about 450 stores in an attempt to overhaul the troubled home furnishings business.

The company’s shares dived as much as 30% on the news and were down about 17% at $5.18 when trading was halted. Pier 1 then reported a wider quarterly loss and confirmed it would reduce staff, shut almost half its stores and close some distribution centers. The headquarters staff cuts affect about 300 employees, the people said.that there’s substantial doubt about its ability to stay solvent.

The Fort Worth company is led by Robert Riesbeck, a turnaround manager named as chief executive in November. He’s cutting expenses by about half, including canceling some existing orders to align Pier 1’s buying with plans for a smaller store base, one person said.

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