Pier 1 Imports plans to close around 57 stores but more closures could follow
Pier 1 Imports is increasing the number of stores expected to shutter this year.
The Texas-based home goods retailer said Wednesday it was looking to close 57 stores in the fiscal year up a dozen from the April estimate of 45 stores.
“We are in active discussions with our landlords” said Cheryl Bachelder, interim Pier 1 CEO, during the company’s quarterly earnings call with analysts Wednesday. “Where we have not seen landlord participation, we have begun our store closing program, as we said, we would.”
Bachelder reiterated what she said in April – more closings could follow.
“If we are unable to achieve our performance goals, sales targets and reductions in occupancies and other costs, we could close up to 15% of our portfolio,” she said Wednesday.
Is your Dressbarn on the list?: Retailer announces first round of closings set for June and July
Store closings 2019: CVS, Payless and Victoria’s Secret are just some of the brands closing stores
Pier 1 Imports could close up to 145 stores. (Photo: Kelly Tyko, USA TODAY)
In April, officials said as many as 145 stores could close as part of a 15% cut.
Days after Pier 1 reported financial results in April, S&P Global Ratings, a major credit rating agency, said the retailer was careening toward a potential bankruptcy restructuring.
According to company documents, there are more than 965 stores in the U.S. and Canada. The chain sells home décor, furniture and other accessories.
Is Toys R Us making a comeback?: A year after stores closed, there’s talk of new locations
Tariff impact: China tariffs could force ‘widespread store closures’ and put $40 billion in sales at risk
Bachelder discussed the China tariffs during Wednesday’s meeting and said the company had “proactively planned for” and the 25% increase is in Pier 1’s financial plan.
“In fact, we’ve been taking actions to reduce our exposure to China since last summer by leveraging the strength of our global sourcing team,” she said. “With the advance of tariffs, we’ve carefully reviewed our assortment and implemented price increases to mitigate a portion of the tariff increases.”
Based on figures from global marketing research firm Coresight Research, bankruptcy filings and company earnings reports, more than 7,000 stores are already slated to be shuttered in 2019. Coresight tracked 5,864 closings in 2018.
The trade war with China could force “widespread store closures” and put $40 billion in sales at risk, according to a May report by UBS investment bank.
Follow Kelly Tyko on Twitter: @KellyTyko
Source: Read Full Article