CLOSING TIME
Pier 1 Imports announces increase to number of stores expected to close ,
Pier 1 Imports is increasing the number of stores expected to shutter this year.
The Texas-based home goods retailer said Wednesday it was looking to close 57 stores in the fiscal year, up a dozen from the April estimate of 45 stores.
“We are in active discussions with our landlords,” Cheryl Bachelder, interim Pier1CEO, said during the company’s quarterly earnings call with analysts Wednesday. “Where we have not seen landlord participation, we have begun our store closing program, as we said we would.”
Bachelder reiterated what she said in April — more closings could follow. “If we are unable to achieve our performance goals, sales targets and reductions in occupancies and other costs, we could close up to15 per cent of our portfolio,” she said Wednesday.
In April, officials said as many as 145 stores could close as part of a 15 per cent cut.
Days after Pier 1 reported financial results in April, S&P Global Ratings, a major credit rating agency, said the retailer was careening toward a potential bankruptcy restructuring.
According to company documents, there are more than 965 stores in the U.S. and Canada. The chain sells home decor, furniture and other accessories.
Bachelder discussed the China tariffs during Wednesday’s meeting and said the company had “proactively planned for” the 25 per cent increase in Pier 1’s financial plan.
“In fact, we’ve been taking actions to reduce our exposure to China since last summer by leveraging the strength of our global sourcing team,” she said. “With the advance of tariffs, we’ve carefully reviewed our assortment and implemented price increases to mitigate a portion of the tariff increases.”
Based on figures from global marketing research firm Coresight Research, bankruptcy filings and company earnings reports, more than 7,000 stores are already slated to be shuttered in 2019. Coresight tracked 5,864 closings in 2018.