Pier 1 Is In Danger Of Being Delisted From The NYSE
We are living in difficult times for selling wicker furniture, it seems. Pier 1 lost $36.9 million in the third quarter — and is in danger of being delisted from the NYSE.
Weak customer traffic and the recession has slowed the company's plan to return to profitability, says Reuters, but the retailer says it has plenty of cash and intends to take steps to prevent its stock from being delisted.
A company is given a delisting notice when its stock falls below $1 for a period of 30 days. Now-bankrupt electronics retailer Circuit City was given the same notice shortly before filing for Chapter 11 protection.
Pier 1 posts loss, faces possible delisting [Reuters]
(Photo: cmorran123 )
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Comments:
@homerjay wants Boston Legal back!: I was JUST watching Blues Brothers last night, and thought of the mall scene when I saw this post.
You sir, win!
I worked as manager for Pier one from 94-2001. Overall, they are a good company, but had a hard time finding and keeping their niche. In the mid 90's they tried to go more upscale to compete with Pottery Barn and Crate & Barrel. This failed (alienating many long time customers because of big price increases), and in the meantime Target swooped in with cool funky housewares at a lower price point. I think they've struggled since then.
$1 seems like a very arbitrary choice. Why not make it a certain threshhold of book value (or tangible book)?
The reason I say that is because this could theoretically be solved with a reverse stock split, which wouldn't fundamentally change anything.
Where will I buy my overpriced wicker couch and green bubbled-glass candleholders? WHERE?!??!
Can't beat Ikea. They have swedish meat balls!
@tinmanx: The cafe at Ikea rocks. Hilarious story- I went through line, and along with the meatballs, they had new potatoes on the menu. I asked the woman for the new potatoes. She gave me a a funny look and went and got another employee, who asked me what I wanted. "New Potatoes" I replied. They looked at each other, and told me that these potatoes were new, that they had just made them. Sigh.
I remember going in a couple months ago just to see if there was anything good for my new apartment, everything was pretty pricey. Maybe if they lowered their prices it would appeal more. However, I don't know what the cost of those items are, so maybe it's already a bargain.
@Segador: Hahaha. My grandmother once ordered a glass of Asti (Spumante) with dinner and the waitress, assuming she was a Southern Belle with a serious drawl, brought her a glass of iced tea.
The fallacy here is that nobody in the South uses the expression "iced tea" (it either "sweet" or "unsweet" tea. Or "hot tea".)
Used to love pier one. Now I see right through the cheap junk at high prices.
Where am I going to get a papasan chair? When you buy a papasan chair at Pier One, that is the ONLY time it will not smell like cat pee.
Pier 1 is overpriced for certain things, but when it comes to furniture it's not so bad for what you get, especially if you catch a sale. Most of their stuff is made out of actual wood, not pressboard, and it's assembled fairly well.
@kimdog:
Yes! I worked there all through college (1999-2003) and even then it seemed like they had a new focus every few months.
And it positively blew my mind that they started killing off the most popular candle scents...Spiced Pear? Ginger Peach? Seriously, Pier 1? I notice both of those scents are back on the shelf now.
@homerjay wants Boston Legal back!:
This place has got everything!
New Oldsmobiles are in early this year.
Do you have Miss Piggy?
They broke my watch!
Oh, there's plenty - that movie is a goldmine.
I remember the days when Pier 1 was a jumble of random imported goods - and a fun place to shop. Then they starting having products made for them - and lost the funky appeal in the process. I won't miss them one bit.
@The Name's Ash78, Housewares: Yes, but that would make sense.
From what I can tell, the wall street way is to approach everything with arbitrary, easily circumvented boundaries, and then act surprised when people abuse the system to make money.
@The Name's Ash78, Housewares: Ricky Martin: Is this hot tea "cold", or "HOT HOT HOT!"?
Keanu Reeves: uh, Is it iced tea?
Trebeck: No, it's HOT tea
Keanu: Oh. I have no idea then.
@buckinggrimace: What's funny is that they are starting to bring back some of the items they got rid of years ago... like asian tableware (little bowls, teapots, chopstick rests, all sold individually) and leather wallets and purses. I guess they are trying to tap into the old magic.
Pier Who ? They should add a few more E's and R's to the name and become Pierre I'ue and go for the upscale clients by having a french sounding name.
Wow. Places I've never shopped at are dying off left and right.
Linen's N Things..Ba-bye - Bed Bath and Beyond...See Ya!
Bombay Co....Nice knowing you! - Pier One - Don't let the door hit you in the ass!
Pottery Barn, Williams and Sonoma, Crate & Barrel - Don't get too comfortable!
This proves that even severe recessions have an upside. Soon it may be safe for me and my wife to go shopping together again.
Btw...For those of you that cannot live without that fake bamboo bird cage, you can get lots of Pier One crap at TJ Maxx. It will be dirty and possibly broken but it will be cheap. Oh, You probably want to pay cash at TJ Maxx.
I feel like they're having an identify crisis. I think of them as a good place for household items with an "international flair." The front of their web site currently features a brightly colored VW Bug with flower child drawings on it. Huh?
Under $1 and it's delisted after 30 days? Can someone explain this to me then?
(NT: $0.25)
I don't think I've heard about Nortel being delisted this year. If I had cash I think I'd buy Nortel. But I've been wrong before...
@shepd:
And now I just noticed they've been given notice. *sigh* I'm not sure how Pier 1 is bigger news than Nortel, though.
Cheap wicker crap isn't selling? Another sign of the impending apocalypse!
I worked for pier 1 last year, and I loved it. Really nice people, treat you very well, and the clients are nice too. Some stuff is pricy, but I still go there for my glassware. You can find some pretty inexpensive stuff there on their 2 big sales...and I had to hold off buying that golden frog even though it was sooo cute because it doesnt go with my room. And like I said, they're really good to their employees. I hope they survive.
@friendlynerd: yeah, but they just killed off white pomegranate. I LOVED that one. And ember is still on the shelves, ember...really, ember? I'd choke on that and die in my house if I had that.
If the recession lasts a long time, I'd expect wicker furniture to make a big comeback.
@The Name's Ash78, Housewares: Some of us say "ice tea" - note the lack of a d. And really hard core southern places have tea in sweet and extra-sweet. Sigh... I miss the south sometimes.
@The Name's Ash78, Housewares: The limit isn't $1, it's $5, and the idea is to prevent "legitimate" exchanges from being flooded with penny stocks.
Also, it's not really up to the exchanges as the SEC defines penny stocks based on the $5 limit (regardless of market cap).
@bdgbill: But...I love Pottery Barn (though I don't buy anything from there that isn't clearance) and Williams Sonoma is practically my second home...and Crate & Barrel, you make such adorable kitchen towels...but...but...
Though I've gotten some of the best kitchen and housewares at TJ Maxx. If you pay attention to what they sell, you can get a lot of quality items that places like Bed Bath and Beyond sell for $50 and get it for about $15 or $20.
My biggest beef with Pier 1 is that they still don't have online shopping. Why haven't they gotten through to their heads that women like to browse? And when they browse, they tend to mentally list things they want and it makes it more likely they'll buy it if it's online and there are sales or coupon codes or whatever, and even if it's an impulse buy, you have a sale. I can't actually be bothered to go 20 minutes to the Pier 1 store because by then I'll have lost my interest in the impulse buy.
I got a really nice bedroom set at Pier 1 a few years ago, real wood, very sturdy, not press board. That said, I bought it on sale, and with my friend's employee discount. So I got the entire $3000 set for around $500. The thing's sturdy as hell though, It's been through 2 moves so far, and other a few dings (which happens when you move), it's held up remarkably well.
While I hope they recover, it doesn't seem too likely. Around a year ago they sold their multi-million dollar corporate headquarters AND DIDN'T TELL ANYONE! Vendors only found out when their mail started getting "returned to sender". Their current address is in a small office park.
@katiat325: The glassware is quite nice, and pretty reasonable. There's a ton of stuff there that's not my style, but I was pleasantly surprised by a lot of the less ornate things that also fell into my price range. My office just moved to about a 10-minute walk away from a Pier 1, so my new lunch break activity is a stroll over there and every once in a while purchasing glass tableware and way too many candle holder things. Not the crazy metal statue type things, but that green recycled glass - I love it.
And very cute tea-light holders. One is shaped like a frog - something about frogs is irrestistable.
Also had good experiences making returns & the salespeople have been pleasant and not pushy. One downside: The side of the store with candles & soaps can be intensely fragrant.
What about Disco Pants and Haircuts?