Report: Pier 1 could be a takeover target
Barron’s suggests declining stock price makes it attractive
By Furniture Today Staff -- Furniture Today, January 17, 2006
FORT WORTH, Texas — Pier 1 Imports’ stock price, which has plunged from nearly $20 to under $10 in less than a year, could be making it a buyout target, according to a report in business weekly Barron’s.
The newspaper said the home furnishings retailer denied that it has hired an investment bank to explore alternatives.
Pier 1 executives could not be reached today for comment.
The Top 100 company, which has posted a string of same-store sales declines and a net loss of $29.8 million through the first three quarters of its fiscal year, is in the process of revamping its assortment for spring — with more modern looks to broaden its appeal and help distinguish itself from competitors such as Target, which now offers a collection of Pier 1-like goods.
Meanwhile, the company’s lagging stock may be “getting washed-out enough for bottom fishers to cruise in,” Barron’s said. Tuesday morning, the stock was trading between $9.32 and $9.50.
If Pier 1 can’t win consumers back quickly, “then some kind of catalyzing transaction can’t be ruled out,” the newspaper said.
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Pier 1: Buyout target with stock drop?
Feb 5, 2006
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