Pier 1 Imports is shutting nearly half of its 942 stores as it struggles to draw consumers and compete online.
The home decor company said Monday that it is closing up to 450 stores and will also shut distribution centers. It also plans layoffs at its corporate headquarters in Fort Worth, Texas.
Pier 1 did not say where the closures would occur or how many workers will be affected. It operates stores in the U.S. and Canada including five in the Richmond region.
The moves had some investors wondering if a bankruptcy filing was imminent.
Also Monday, Pier 1 added two members to its board with expertise in corporate restructuring. In November, the chain named a new CEO with a background in corporate turnarounds. Robert Riesbeck previously served as its chief financial officer.
“Although decisions that impact our associates are never easy, reducing the number of our brick-and-mortar locations is a necessary business decision,” he said Monday in a statement.
Pier 1, which was founded in California in 1962, said sales in its most recent quarter dropped 13% to $358 million as store traffic fell. It reported a net loss of $59 million for the quarter.