77.5 F
Fort Worth
Tuesday, August 4, 2020

Pier 1 furloughs most employees at Fort Worth headquarters

Other News

Pier 1 brand to remain alive online

Fort Worth-based Pier 1 Imports is coming to the end of its life as a brick-and-mortar retail business, but a pair of...

Longtime Fort Worth boutique closing its doors

Earth Bones Boutique & Gift Store as well as a companion store, Retro Cowboy in Sundance Square either have closed or will...

Walgreens CEO Pessina to step down, become executive chair

By TOM MURPHY AP Health WriterWalgreens' Stefano Pessina will step down as CEO and become executive chairman once the drugstore chain finds...

Target joins Walmart in ending Thanksgiving store shopping

By ANNE D'INNOCENZIO AP Retail WriterNEW YORK (AP) — Target is joining Walmart in closing its stores on Thanksgiving Day, ending a...

Pier 1 Imports has furloughed most of its employees at its Fort Worth headquarters and instituted pay cuts for those still employed as a result of the coronavirus and to preserve liquid assets.

“Like many retailers that have temporarily closed stores in response to COVID-19, we are making difficult decisions that are necessary to preserve value in our business for the long-term benefit our associates, customers and other stakeholders,” said Pier 1 CEO Robert Riesbeck.

About 65 percent of the company’s employees at headquarters as well as some store and distribution associates are furloughed indefinitely.

That decision was made March 23, following the company’s announcement on March 22, to temporarily shutter all Pier 1 stores nationwide to combat the coronavirus.

Employees deemed critical to operations have had their pay cut by 20 percent. Salaries were cut 30 percent for senior executives were 50 percent for executive vice presidents and above. Pay for board members was cut or deferred by 50 percent, the company said in a statement.

The company said it would continue to follow guidelines from government and health office to determine when it can re-open its stores.

Pier 1 is continuing to take and fill orders through online operations.

Last month, Pier 1 initiated Chapter 11 bankruptcy proceedings in U.S Bankruptcy Court for the Eastern District of Virginia.

The filing came followed an announcement earlier this year that Pier 1 would close 450 stores and layoff employees.

Lenders have committed approximately $256 million in debtor-in-possession financing so the company could continue to operate through the bankruptcy process.

Pier 1 was founded in California in 1962 and established a relationship for selling trendy home goods such as beanbag chairs and hanging strands of love beads to serve as room dividers.

The company moved its headquarters to Texas and went public in 1970.

In recent years, the company has moved into selling more conventional items such as furniture, dishes and decorative pieces but has struggled with competition from lower-priced retailers such as Walmart, Target, Home Goods and Wayfair.

In its most recent quarterly earnings report, ending Nov. 30, 2019, the company’s sales fell 13 percent to $358 million. It reported a net loss of $59 million for the quarter.

In a news release, Pier 1 stated it operates 541 stores in the U.S. but did not disclose its number of employees

- Advertisement -
- Advertisement -

Latest News

Retail rout gains pace, Lord & Taylor seeks bankruptcy

NEW YORK (AP) — Lord & Taylor, America's oldest retailer, is seeking bankruptcy protection, as is the owner of Men's Wearhouse and...

Irving-based 7-Eleven acquires Speedway stations

By MATT OTT AP Business WriterSILVER SPRING, Md. (AP) — The $21 billion sale of Speedway gas stations has bought Marathon Petroleum...

COVID-19 testing in FW and Tarrant County

The City of Fort Worth and Tarrant County continue to expand COVID-19 testing for residents., the governments said...

PyxisCare launches strategic health plan management

PyxisCare Management, a supplier of personalized care coordination for mid-sized companies, individuals and families with complex care needs,...

Texas sales tax collections went up in July — and were higher than one year ago

By Cassandra Pollock, The Texas Tribune Aug. 3, 2020 "Texas sales tax collections went...