Pier 1 Imports is shutting down stores in Canada as bankruptcy rumours swirl
Between hundreds of newly-announced store closures and plummeting stock values, home furnishings store Pier 1 Imports is having a tough time.
The once-successful Texas-based decor retailer has been around Canada and the U.S. for decades, with nearly 1,000 locations in recent years, more than 65 of them in Canada.
The company announced in April 2019 that it was planning to close 145 storefronts in fiscal 2020, in addition to dozens it had just closed down.
It has now decided to shutter a whopping 450 more locations along with multiple distribution centers. This will result in the layoffs of 40 per cent of its headquarters staff, or about 300 people.
Pier 1 Imports will close nearly half of its stores, up to 450, and is reportedly nearing a bankruptcy filing https://t.co/yfEqyLzTqk pic.twitter.com/G835n724lW— CNN Breaking News (@cnnbrk) January 6, 2020
Though the chain has not yet specified which locations will be closing, it has been confirmed that a Winnipeg store is among them.
Pier 1 has been facing declining sales, losing $59 million in its last quarter, according to CNN. Many experts don't believe the business will be able to recover, and that it is heading towards bankruptcy.
Bloomberg reports that the retailer has actually already drafted up a plan for Chapter 11 bankruptcy — which would permit it to remain in operation while it sorts out a potential business solution — and is envisioning a much smaller-scale operation.
Pier 1 Imports shares tanked more than 25% Monday afternoon following a report from @business that said the company is preparing to file for bankruptcy and slash jobs. https://t.co/WYW3wH352l— Bulls and Bears (@AnalysisFin) January 6, 2020
Amid this week's news of the closures, company shares have fallen nearly 30 per cent.
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