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Posted on 02/05/2009 3:06:51 PM PST by NRG1973
Pier 1 Imports (NYSE: PIR) is moving up in the ranks of layoff kings by announcing that it will lay off another 10% of its "full time equivalent positions in its distribution center, home office, and field administration areas."
The layoffs could hit stores too. The company disclosed that it is negotiating with landlords in an effort to negotiate lower rent payments to help cope with its tanking sales. In the press release, Pier 1 noted that "The Company has begun negotiating with landlords to achieve rental reductions across the chain. These negotiations may lead to the execution of early termination agreements for up to 125 underperforming store locations, if rental reduction negotiations on those locations prove unsuccessful." That figure represents more than 10% of Pier 1's approximately 1,100 store base.
With Pier 1's stock trading at a market cap of just $30 million and a share price of 33 cents, many investors seem to think this story will end with bankruptcy. The company has boasted that it has strong liquidity in its most recent earnings reports, but continuing sales declines, writeoffs and restructuring expenses could eat into that. Restructuring leases is an important step in turning around the company and the timing is good since if Pier 1 closes stores, landlords will have a hard time finding new tenants.
...'way to go 0bama!!!
Has anyone examined the other side? Is anyone hiring or starting businesses?
Is the bad news as real as the media makes it out to be or once the Porkulus is passed (hoping it never passes) will the bad news quiet down?
Perception is reality, right?
They were predicted to be one of the Top Ten businesses that were going to go under this year.
Three years ago I was in the running to manage one of their local stores. I am so GLAD I dodged that bullet!
The next part of the economy that’s going to take a big hit is the loss of revenue and tax dollars for cities from all the strip malls that will be standing empty within 12 months or so.
I swear, every time 0bama opens his mouth, sphincters tighten in the Free Market and consumers grip their cash even more tightly!
I passed by Circuit City today. They have going out of business signs up. There are also “for lease” signs up too. Kind of sad.
You know I just loved that store at one time....Not only has the economy hurt stores like this, but the Internet has.
It is so much easier to buy off the Internet....
Our store is in a busy location across town. You have to make a special trip to go there, which I don’t. Internet sales only, might not be a bad idea for them.
We live near a Sharper Image store that went out of business early last year. It’s a huge space that remains empty.
Right nearby a maternity clothing store has closed.
Just waiting to see if any other stores close. For my money Anthropology can close. All summer the window was covered in paper cut out bugs of some sort. yuck.
Nice Record Obama.
640, 000 Jobs Lost
0 Jobs Gained
I geuss in a way we’re finding out how much of our economy is based on credit. People buying stuff they don’t have the money for. And often its stuff they don’t even need. In the long run maybe this will help americans to live within their means and not needlessly spend their way into constant debt.
Back in the 80's and early 90's I liked going to Sharper Image (unfortunately then I couldn't afford anything there). But when I go there now its been pretty unimpressive.
I was an avid shopper there when I was first setting up house in my mid-20’s. In it’s time, I would compare it to how ‘cool’ I find ‘Crate and Barrel’ or ‘Williams Sonoma’ these days, but I understand WS is having some financial problems, too.
IKEA probably hurt Pier 1, and World Market and a few others that did it better than Pier 1 did, after a while.
Our local ‘Linens-n-Things’ just closed, and ‘Bed, Bath & Beyond’ might be right behind it. What a sloppy, messy, ill-run store our local one is!
There’s a gorgeous stand-alone Pier 1 on Hwy 100 (Capitol Drive) in Milwaukee, WI that friends and I would visit a few times a year. I always found something fun and funky there.
I’ve yet to buy home furnishings on line. I’m tactile; I like to touch stuff before I buy it. :)
Our two Circuit Cities are gone from Madison, WI, too.
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Just what we need: more malinvestment. Commercial RE is tanking. It will have a serious affect on property tax receipts and local government budgets.
The natural cycle of economies should stop government from growing so large by limiting taxes or leading to tax revolts. I hope this happens.
It is so sad...
Cost Plus is a cool store too. I hate to see them go, I have bought some unique pieces there. But Z-Gallery and Pottery Barn all compete on the same general products.
Too bad about Chilis, that is a terrific restaurant.
Overbuying fueled the economy the last few years, people borrowing on their houses to fund furniture, vacations and dinners out. It will take a long time to correct things to be more normal.
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