Pier 1 Imports' stock takes an afternoon dive, then gets halted for news
Shares of Pier 1 Imports took an afternoon dive Monday, plummeting as much as 30% intraday before paring losses to shed 17%, amid growing concerns over store closures. The stock was halted twice for volatility, at 2:58 p.m. Eastern and 3:09 p.m. before being halted for news at 3:21 p.m.; a few minutes before the first volatility halt, the stock was down about 4.8%. On Friday, Bloomberg reported the home furnishings retailer was planning a significant increase in store closings. The report, which cited people with knowledge of the plan, said the company was looking to restructure out of court, but that bankruptcy was an option under consideration if the company fell short of its goals. The company did not immediately respond to a request for comment. Investors have been concerned about a potential liquidation for a while (see this MarketWatch story from April) as the company has reported same-store sales that have declined for eight straight quarters and losses for six straight quarters. The stock has tumbled 40% over the past 12 months, while the SPDR S&P Retail ETF has gained 7.5% and the S&P 500 has advanced 28%.
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