For the 3rd quarter, Pier 1 reported an 11.4% drop in same-store sales, partially caused by the reduction in holiday selling days vs. 2018. Net sales reduced 13.3% to $358.4 million, and the total bottom line was $59 million. The business reported $11.1 million in money and $382 million in debt as of Nov. 30.
The company stated it’s utilizing a third-party liquidator to help manage the store closings, and received permission from its loan providers to lower the store footprint, headcount and expenditures. A headcount decrease figure was not offered, however Bloomberg pegged the figure at 40%.
Amid continuous performance difficulties, Pier 1 Imports said it prepares to close up to 450 shops, nearly half of its 942 places, reduce headcount and shutter some circulation centers in addition to other expenditure reductions as the business is apparently weighing bankruptcy.
According to Bloomberg, Pier 1 has actually drafted an insolvency plan and last month informed lenders it anticipates to diminish to a $900 million business, while canceling some orders and has actually asked about Chapter 11 funding. Pier 1 said there’s “substantial doubt … about the company’s capability to continue as a going concern” in its 10Q filing. It likewise stated cash and equivalents and forecast capital “are not expected to be adequate to fulfill the business’s commitments that will grow over the next 12 months.”
“Although decisions that impact our partners are never simple, reducing the variety of our brick-and-mortar areas is a necessary service decision,” said Pier 1 CEO and CFO Robert Riesbeck in a release. “We thank our group of hard-working partners for their commitment to Pier 1 and to serving our clients.”