On Monday Pier 1 has said that it is intending to close as many as 450 locations or close to half of their fleet which is 942 stores as it had reported earnings in the quarter amidst the rumors of bankruptcy.
The losses have been mounting for Pier 1 and there has been a decline in its sales. The latest quarter has followed a similar pattern and the loss in the third quarter had widened from what it had been one year ago as there was a decline in the same-store sales by 11.4%.
The company has said that it is further planning to shut a few of their distribution centers and also reduce the expenses which also include the reduction of headcount.
The third-quarter margins and sales have been under pressure says the CEO Robert Riesbeck in his statement. Looking forward, they are of the belief that it is going to deliver the results which are going to improve over the time as they realize that the benefits of transforming business and initiatives which reduce cost.
The shares of Pier 1 have been halted as reports of earnings come out. Earlier in afternoon, the shares of the retailers had fallen by over 25% before they had been halted for the news as they followed a report which said that Pier 1 had been filing for bankruptcy. Stocks too had halted briefly earlier on Monday due to the volatility.
There have been no comments made from the company in response of the reports and the closing down of the stores.
Robert Riesbeck took over the mantle of being a CEO recently and has the task of resurrecting the company.