Pier 1 to shutter 16 stores
Pier 1 Imports Inc. has decided so far to close 16 stores since announcing last month that it had hired a company to help negotiate rent reductions with landlords.
The Fort Worth, Texas chain (NYSE: PIR), which has 20 stores in Minnesota, is not disclosing the locations to be shuttered because negotiations are continuing. The retailer said Friday it has reduced rents by about $5 million for fiscal 2010 and expects to close no more than 80 stores for fiscal 2010.
Pier 1 also announced Friday that a foreign subsidiary purchased $79 million of the company’s debt at a price of $27 million installment payday loans.
In pre-released results for the fourth quarter ended Feb. 28, Pier 1 reported a net loss of $29 million, compared to net income of $14 million for the same period last year. Total sales for the fourth quarter fell to $389 million from $437 million. Comparable store sales for the quarter shrunk by 9.7 percent.
Filed under: economics by Wolf