Alden Global Capital, a New York investment management firm, purchased 7.9 million shares or 9.5 percent of stock in Pier 1 Imports Inc. on Monday, making the firm the second-largest institutional investor in the Fort Worth-based retailer.
That makes Alden Global second behind T. Rowe Price and Associations, which has over 11 percent.
In a regulatory filing, Alden Global said it took the position with hopes of working with the company as it searches for a new CEO and looks for ways to improve results.
Pier 1 announced on Sept. 7 that CEO Alex Smith will step down at the end of the year after nearly 10 years of leading the company. The company has begun a search for a new CEO with the help of executive search firm Korn Ferry.
In a statement from Pier 1, the company said it “values constructive input from investors and regularly engages in dialogue with its shareholders regarding strategy and performance. Pier 1 Imports will continue to engage with shareholders, including Alden Global Capital, and evaluate opportunities to increase long-term shareholder value.”