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Pier 1: Buyout target with stock drop?

By Furniture Today Staff -- Furniture Today, January 22, 2006

Fort Worth, Texas — Specialty retailer 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 chain denied it had hired an investment bank to explore alternatives.

Pier 1 executives could not be reached 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 revamping its assortment for spring, bringing in 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. At press time last week, the stock was trading in the low $9 range.

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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Report: Pier 1 could be a takeover target

Jan 17, 2006

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