Luke Sharrett | Bloomberg | Getty Photographs
Pier 1 Imports on Monday mentioned it intends to shut as much as 450 areas, or virtually half its fleet of 942 shops, because it unexpectedly reported quarterly earnings amid chapter rumors.
Pier 1’s losses have been mounting, as its gross sales decline. And this newest quarter was no exception. Its third-quarter loss widened from a yr in the past, as same-store gross sales declined 11.4%.
The corporate mentioned it additionally plans to close sure distribution facilities and scale back its company bills, which incorporates slashing its company headcount.
“Fiscal third quarter gross sales and margins remained below strain,” CEO Robert Riesbeck mentioned in an announcement. “Trying forward, we consider that we’ll ship improved monetary outcomes over time as we notice the advantages of our enterprise transformation and cost-reduction initiatives.”
Pier 1 shares remained halted because the earnings report got here out. Earlier within the afternoon, the retailer’s shares tanked greater than 25% earlier than being halted for information, following a report from Bloomberg that mentioned Pier 1 was getting ready to file for chapter. The inventory was additionally briefly halted because of volatility earlier Monday.
A consultant from Pier 1 did not instantly reply to CNBC’s request for remark concerning the Bloomberg report.
For the quarter ended Nov. 30, Pier 1 mentioned in a press release that its loss widened to…