(CBS/CNN) — Pier 1 Imports will close nearly half of its stores and is reportedly nearing a bankruptcy filing.
The home goods retailer has been struggling for years against rising pressure online and from big-box rivals. Its stock, which was at $300 a share in 2015, is was trading at around $5 Monday.
Pier 1 shares tumbled nearly 17% Monday after Bloomberg reported the news of a potential bankruptcy.
Pier 1 operated 942 stores in the United States and Canada at the end of its latest quarter. It said Monday that it will close up to 450 stores “in order to better align its business with the current operating environment.” Pier 1 will also close distribution centers and lay off corporate employees.
There are 20 Pier 1 stores within 75 miles of Boston. It is unclear how many of those will close.
During the company’s latest quarter, sales at stores open for at least one year decreased 11.4% compared with the same time last year. The company also lost $59 million,
Pier 1 is far from the only casualty of competition and shifting consumer habits in retail.
In 2019, US retailers announced 9,302 store closings, a 59% jump from 2018 and the highest number since Coresight Research began tracking the data in 2012.
Bed Bath & Beyond, a rival home decor retailer, has also struggled in recent years. Bed Bath & Beyond’s new CEO, Mark Tritton, previously worked in Target’s C-suite helping build the chain’s popular stable of private-label clothing and home furnishings’ brands.
(© Copyright 2020 CBS Broadcasting Inc. All Rights Reserved. CNN Business correspondent Nathaniel Meyersohn contributed to this report.)