Pier 1 is planning to close 450 stores, representing about half of its total store count, as it struggles to stay afloat after years of falling sales.
The company revealed plans for the closings, which could affect thousands of employees, in an earnings release on Monday. Pier 1 has 942 stores and about 4,000 employees.
The company also said on Monday that it planned to cut its corporate head count and shut down some distribution centers.
“Although decisions that impact our associates are never easy, reducing the number of our brick-and-mortar locations is a necessary business decision,” Pier 1 CEO Robert Riesbeck said in the earnings release. “We thank our team of hard-working associates for their commitment to Pier 1 and to serving our customers.”
Bloomberg reported earlier on Monday that Pier 1 planned to cut about 40% of its headquarters staff, or about 300 people. The report said Pier 1 has also canceled orders and drafted a bankruptcy plan. Pier 1 did not immediately respond to a request for comment on the report.
Pier 1 has been struggling to turn around its business after eight straight quarters of sales losses and mounting competition from retailers such as Wayfair and Walmart.
Riesbeck said the store closings and other plans announced on Monday would better position the company for the future.
“Looking ahead, we believe that we will deliver improved financial results over time as we realize the benefits of our business transformation and cost-reduction initiatives,” Riesbeck said. “To further advance our progress, we are announcing additional actions today that will enable us to move forward with an appropriately sized store footprint and operating structure as an omni-channel retailer, and better position Pier 1 to meet our customers where they shop.”