According to an article in the Star-Telegram, Pier 1 Imports announced that it will experience job losses , cutting about 10 percent of the full-time jobs at its headquarters, distribution centers and field administration. Pier 1 Imports also announced that it will close an Illinois distribution center and may close up to 125 “underperforming” stores if negotiations with landlords to cut rents are unsuccessful. Pier 1 Imports employs about 650 employees in Dallas-Fort Worth but is unsure if the job losses will affect those workers.
The article said:
Pier 1…expects that the job cuts will cost the company about $5 million for severance, outplacement and other charges. The company said it also could incur one-time charges for any store closings.
It sounds like Pier 1 Imports as well as other nearly bankrupt retailers are digging in for the long-haul. The willingness to pay $5 million just to implement job losses speaks volumes about their expectations for the future.
Commercial real estate companies who rent to retailers experiencing job losses and profit loss are going to hurt tremendously as companies close hundreds of stores around the country and new renters don’t move in or aren’t willing to pay the going rate.