Home merchandise retailer Pier 1 Imports Inc.'s (NYSE: PIR) shares plummeted on Monday as company reportedly nears bankruptcy.
The Texas-based company on Monday reported net sales of $358.4 million in the third quarter. This is a 13.3% decline year-on-year.
Pier 1 posted a quarterly net loss of $58.96 million, with a loss per share of $14.15. The company had reported a $12.15 loss per share in the similar quarter a year ago.
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The retailer also said that is shutting down 450 stores, certain distributing centers and laying off staff as it seeks to increase cash flows and "better align its business with the current operating environment."
In its second quarter earnings report, the company had said that it operated 951 stores across the U.S. and Canada.
Ahead of the quarterly results, Bloomberg reported that Pier 1 is preparing to file for bankruptcy.
According to Bloomberg, Pier 1 presented a bankruptcy proposal to creditors in December which envisioned a smaller company with annual sales of only about $900 million.
Pier 1 isn't the only home goods retailer struggling to turn around its business. Its rival Bed Bath & Beyond Inc. (NASDAQ: BBBY) has sold approximately half of its real estate to a private equity firm in order to get immediate cash to pay off debts and buy back shares, the Wall Street Journal reported on Monday.
Pier 1's shares closed 16.93% lower at $5.18 on Monday. The shares were further 6.28% down in after-hours trading.