Fort Worth-based Pier 1 Imports Inc. saw shares rise late on Tuesday after the home-furnishing retailer announced its board of directors adopted a shareholders’ agreement aimed at stopping unwanted takeovers.
Hedge fund Alden Global Capital LLC last week announced it had taken a 9.5 percent stake in the retailer, shortly after the retailer announced CEO Alex Smith was leaving the company following disappointing sales.
“The board feels it is important to ensure that all shareholders have the opportunity to realize the long-term value of the iconic Pier 1 Imports brand, and to guard against coercive or unfair tactics to gain control of the company without paying all shareholders an appropriate premium,” said Terry E. London, chairman of Pier 1’s board of directors. “Equally important, the board remains focused on our search for a new CEO to guide and execute the company’s omni-channel strategy, and is committed to driving increased value for our shareholders.”
Pier 1 trades on the NYSE under the PIR symbol. Shares were up 2 percent mid-day Wednesday.