Pier 1's Got Problems

What can we say about Pier 1 Imports that hasn’t been thrown out there already? Probably nothing.Its stock has traded at under $1 since mid November. Sales haven’t been too, uh, encouraging, after a Q3 same-store sales plunge of 17.8%. It tried to buy Cost Plus last year but then later withdrew its offer. It’s been on nearly every industry observer’s “watch list” for some time now. Now the home-furnishings retailer has announced it has hired DJM Asset Management to renegotiate some leases and could possibly close 125 of its 1,100 stores. The retailer is also closing a St. Charles, IL, distribution center.The only thing that surprises us about the situation is that they aren’t closing more stores. It’s not that we have anything against Pier 1. On the contrary, we’ve gotten some nice gifts at the place, for and from others. But if we owned a shopping center right now, would we want them as a tenant? Ehhhhhh…