Pier 1’s Got Problems

What can we say about Pier 1 Imports that hasn’t been thrown out there already? Probably nothing.

Its stock has traded at under $1 since mid November. Sales haven’t been too, uh, encouraging, after a Q3 same-store sales plunge of 17.8%. It tried to buy Cost Plus last year but then later withdrew its offer. It’s been on nearly every industry observer’s “watch list” for some time now.

Now the home-furnishings retailer has announced it has hired DJM Asset Management to renegotiate some leases and could possibly close 125 of its 1,100 stores. The retailer is also closing a St. Charles, IL, distribution center.

The only thing that surprises us about the situation is that they aren’t closing more stores. It’s not that we have anything against Pier 1. On the contrary, we’ve gotten some nice gifts at the place, for and from others. But if we owned a shopping center right now, would we want them as a tenant? Ehhhhhh…


5 Responses to “Pier 1’s Got Problems”

  1. 1 Broker February 4, 2009 at 9:46 am

    No surprise, when people are struggling to keep food on the table wicker casual furniture and a new vase for the coffee table are not going to happen.

  2. 2 Jeannie February 4, 2009 at 9:47 am

    I forget….did Pier 1 try to buy out Cost Plus last year, or was it the other way around? Whichever way it went, the deal failed. And now, both retailers are facing layoffs and store closures. I wonder which one will outlast the other?

  3. 3 James February 4, 2009 at 11:13 am

    This is the stuff that no one needs and/or already has. Did flapper skirts sell during the depression?? I don’t think so. They need to take more drastic steps than is indicated by the annoucement. I would be looking at a structured Chap 11, down sizing to maybe 500 stores, consolidating inventory and staff. They might as well hit up their suppliers for deep discounts and slow pay arrangements while they are at it. Good luck.

  4. 4 Linda February 5, 2009 at 4:15 pm

    sorry to see all these retailers go, back to basic, sears and penneys, maybe montgomery ward will come back,

  5. 5 Gigi February 5, 2009 at 5:06 pm

    While it’s true with the economy in the tank, no one is buying knick-knacks and home furnishings. But even when things were good, Pier I hasn’t been good for a while. Cost Plus and stores like Crate & Barrell have much better and much cooler offerings. Pier I was good back in the day, but I never find anything I want or would give to anyone else. Better to re-think their product mix.

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