USA – The furniture chain is reporting the they will close 40% of the chains store footprint and will look at bankruptcy options.
“In order to better align its business with the current operating environment, Pier 1 intends to reduce its store footprint by up to 450 locations. To reflect the revised store footprint, the Company also plans to close certain distribution centers and reduce its corporate expenses,” Pier 1 said in a press release.
According to the third quarter fiscal 2020 financial summary
Third Quarter Fiscal 2020 Financial Summary
- Company comparable sales decreased 11.4% compared to the third quarter of fiscal 2019; the Company estimates that the shift of certain holiday selling days, which were included in last year’s fiscal third quarter, negatively impacted third quarter fiscal 2020 company comparable sales by approximately 650 basis points. The impact of this timing shift is expected to reverse in the fourth quarter of fiscal 2020;
- Net sales decreased 13.3% to $358.4 million compared to the third quarter of fiscal 2019;
- Net loss of $59.0 million, or ($14.15) per share;
- Impairment charges totaling $14.1 million which consisted of $9.2 million for lease right-of-use assets and $4.9 million for fixed assets;
- Inventory of $328.9 million, down approximately 15.3% year-over-year; and
- Cash and cash equivalents of $11.1 million at quarter end, $189.5 million outstanding under its senior secured term loan, $50.0 million of borrowings under the Company’s FILO tranche, $96 million of borrowings under its $350 millionrevolving credit facility and $46.5 million in letters of credit outstanding under the Revolving Credit Facility, with $158.5 million remaining available for cash borrowings, all as of November 30, 2019Mr. Riesbeck added, “Although decisions that impact our associates are never easy, reducing the number of our brick-and-mortar locations is a necessary business decision. We thank our team of hard-working associates for their commitment to Pier 1 and to serving our customers.”