Pier 1 Imports, Inc. Appoints Cheryl A. Bachelder Interim Chief Executive Officer
Announces Cost Reduction Program; Reduces Planned Capital Expenditures for Fiscal 2019
Commences Process to Evaluate Strategic Alternatives
Company Separately Reporting Third Quarter Fiscal 2019 Financial Results; Conference Call to be Held at
Additionally, Pier 1 today announced the following actions to enhance shareholder value and position the Company for long-term growth and profitability:
The Company will narrow its strategic focus and hone execution to provide the distinctive Pier 1 style and value proposition desired by customers. The Company’s newly appointed Chief Customer Officer,
Donna Colaco, will lead this effort.
- The Company is implementing a more rigorous cost reduction program expected to generate annualized expense savings beginning in fiscal 2020.
- The Company will continue to manage day-to-day execution with the added resources of an internationally recognized consulting firm.
Pier 1’s Board has initiated a process to evaluate a full range of strategic alternatives to enhance shareholder value and has retained
Credit Suisseto assist in this effort.
The Company separately announced in its third quarter fiscal 2019 earnings release that it has successfully amended its secured revolving credit facility to include a new
$50 millionfirst-in, last-out (FILO) tranche with Bank of Americaand Pathlight Capitalthat funded December 14, 2018, and plans to reduce its expected capital expenditures for fiscal 2019 from $60 million to $40 million.
December 1, 2018, the Company had $71 millionof cash and cash equivalents and no working capital borrowings outstanding under its $350 millionsecured revolving credit facility, which was increased to a $400 millionfacility with the $50 millionFILO tranche closed post quarter end.
“We are pleased to have a proven executive of Cheryl’s caliber stepping into the CEO role on an interim basis. Cheryl brings to Pier 1 a strong track record of leadership, execution and building shareholder value. We are confident that she is the right person to oversee the actions necessary to strengthen the business and place the Company on a path to growth as we work to evaluate the most effective avenues to create value for all shareholders,” said
Ms. Bachelder said, “I accepted this role as a steward of a great company called Pier 1, which is defined by an iconic brand, dedicated retail store associates, and loyal customers and vendor partners. I am honored to serve in this role as we seek to enhance Pier 1’s value for all of our stakeholders and look forward to working with the Board, management team and outside advisors to quickly and decisively take action to put Pier 1 in a stronger position for the future.”
“Clearly the ‘New Day’ strategic plan did not deliver the desired results fast enough. We will need to promptly narrow our strategic focus and hone our execution in a way that reinvigorates our top-line sales with a distinctive Pier 1 style and value proposition for our customers, while re-engineering our cost structure for sustainable profitability. I look forward to outlining a new action plan in short order,” Ms. Bachelder continued. “We are delighted to have our Chief Customer Officer,
There can be no assurance that the strategic alternatives process will result in any transaction. Pier 1 has not set a timetable for completion of the strategic alternatives process, and it does not intend to comment further unless and until the Board has approved a specific course of action or the Company has otherwise determined that further disclosure is appropriate or required by law.
The Company separately reported its third quarter fiscal 2019 financial results today. The Company will hold a conference call to discuss third quarter fiscal 2019 financial results, the appointment of
Ms. Bachelder is a restaurant industry executive with more than 40 years of retail brand building, guest experience, human capital and operations perspective from her recent leadership of a global public company. Ms. Bachelder most recently served as chief executive officer of
Financial Disclosure Advisory:
Except for historical information contained herein, the statements in this press release or otherwise made by our management in connection with the subject matter of this press release are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) and involve risks and uncertainties and are subject to change based on various important factors. This press release includes forward-looking statements that are based on management’s current estimates or expectations of future events or future results. These statements are not historical in nature and can generally be identified by such words as “believe,” “expect,” “estimate,” “anticipate,” “plan,” “may,” “will,” “intend” and similar expressions. Management’s expectations and assumptions regarding future results are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements included in this press release. These risks and uncertainties include, but are not limited to: the impact of initiatives implemented in connection with the Company’s multi-year “New Day” strategic plan, particularly with respect to changes in that plan and initiatives intended to return the Company to profitable growth; the impact of initiatives connected with the designation of Ms. Bachelder as interim chief executive officer; the results of the evaluation of strategic alternatives and the terms, value and timing of any transaction resulting from that process, or the failure of any such transaction to occur; the effectiveness of the Company’s marketing campaigns, merchandising and promotional strategies and customer databases; consumer spending patterns; inventory levels and values; the Company's ability to increase cash flows to support its operating activities; the effectiveness of the Company's relationships with, and operations of, its key suppliers; the Company’s ability to implement planned cost control measures and reductions in capital expenditures; risks related to U.S. import policy, particularly with regard to the impact of tariffs on goods imported from
About Pier 1
The Blueshirt Group