Pier 1 Drops Dividend

It sees adequate liquidity with the pending sale of a credit card business.
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Pier 1 (PIR) - Get Report ended its 10-cent-a-share quarterly dividend, saying it needs to maintain liquidity.

The Fort Worth, Texas, home goods retailer made the move just days after it announced the departure of longtime CEO Marvin Girouard. Pier 1 has been hit hard by declining sales and a falling stock price.

"We believe that discontinuing the cash dividend will improve the company's near-term liquidity and is consistent with our efforts to provide financial stability as we execute Pier 1's turnaround strategy," Girouard said. "While the discontinuation of the cash dividend was done in an effort to provide additional flexibility, we still believe that the company's cash on hand, available lines of credit and proceeds from the sale of the credit card business will be sufficient to meet our expected cash requirements over the next fiscal year."