Pier 1 Looks for Rent Concessions, Closing Distribution Center
February 4, 2009
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Specialty home retailer Pier 1 Imports is requesting rent reductions with landlords to meet the challenges of the economic slump and closing an Illinois distribution center.
The company said in a press release yesterday that the negotiations could result in early termination agreements for up to 125 underperforming stores if the rent reductions couldn't be met. Pier 1 is working with DJM Realty, which is set to complete the negotiations by the end of May.
The closing of the company-owned 514,000-square-foot distribution center in St. Charles, Ill., will result in a 10 percent reduction of the retailer's full-time positions in its distribution enter, home office and field administration areas.
Pier 1 expects to incur $5 million in costs for severance, outplacement and other charges, as well as one-time charges related to store closing if the rent reduction negotiations aren't successful. The retailer said it expects the actions to benefit the company's future operating results through reduced payroll expenses and operational improvements resulting from the store and distribution center closings.
The company said in a press release yesterday that the negotiations could result in early termination agreements for up to 125 underperforming stores if the rent reductions couldn't be met. Pier 1 is working with DJM Realty, which is set to complete the negotiations by the end of May.
The closing of the company-owned 514,000-square-foot distribution center in St. Charles, Ill., will result in a 10 percent reduction of the retailer's full-time positions in its distribution enter, home office and field administration areas.
Pier 1 expects to incur $5 million in costs for severance, outplacement and other charges, as well as one-time charges related to store closing if the rent reduction negotiations aren't successful. The retailer said it expects the actions to benefit the company's future operating results through reduced payroll expenses and operational improvements resulting from the store and distribution center closings.
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