Pier 1 to close nearly half its stores as losses widen and bankruptcy rumors persist

Business

Luke Sharrett | Bloomberg | Getty Images

Pier 1 Imports shares tanked more than 25% Monday afternoon following a report from Bloomberg that said the company is preparing to file for bankruptcy and slash jobs.

The stock was briefly halted due to volatility and then again for news pending.

In November, Robert Riesbeck was named CEO, replacing Cheryl Bachelder, who had been serving as interim CEO since December 2018. Riesbeck had been Pier 1’s CFO since July 2019 and has prior experience in turnaround situations.

Pier 1 has posted sales declines for eight consecutive quarters. The home furnishings giant has lost market share to the likes of Amazon, Walmart, Target and Wayfair.

During its latest earnings conference call in Septemer, Pier 1 executives said the company was planning to shutter about 70 stores in fiscal 2020, and potentially more, depending on how situations with landlords pan out.

The retailer’s stock is down about 31% over the past 12 months. It has a market cap of just about $21.5 million.

A representative from Pier 1 didn’t immediately respond to CNBC’s request for comment.

This is a developing story. Please check back for updates.

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