Dealer increases the number of closures
Pier 1 Import increases the number of stores expected to close this year.
The Texas-based home merchant 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", says temporary CEO Cheryl Bachelder during the company's quarterly revenues, interview with analysts. "Where we haven't seen the landlord's participation, we've started closing our program as we said."
Bachelder repeated what she said in April ̵[ads1]1; more closures could follow.
"If we fail to achieve our performance goals, sales goals and reductions in occupations and other costs, we can close up to 15% of our portfolio," she said Wednesday.
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Pier 1 Import can 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 R Atings, a major credit rating agency, said the dealer was caring for a potential bankruptcy reconstruction. 19659003] According to company documents, it is more than that 965 stores in the US and Canada. The chain sells home decoration, furniture and other accessories.
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Tariff effect: China Charges May Force "Widespread Store Closing" and Put $ 40 Billion in Sale at Risk
Bachelder discussed China's tariffs during Wednesday's meeting and said the company had "pro-actively planned for" and the 25% increase is in Pier 1's financial plan.
"In fact, we've taken steps to reduce our exposure to China since last year, leveraging the strength of our global sourcing team," she said. "With tariff advances, we have carefully reviewed our range and implemented price increases to reduce some of the tariff increases."
Based on figures from global market research firm Coresight Research, bankruptcy registration and corporate revenues, more than 7,000 stores are already slated to be shuttered in 2019. Coresight track 5,864 closings in 2018.
The commercial war with China could force "widespread store closure" and Put $ 40 billion in danger at risk, according to a May report from the UBS Investment Bank.
Follow Kelly Tyko on Twitter: @KellyTyko
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