Pier 1 to cut jobs, close distribution center

NEW YORK - Amid a tough economy and continued housing slump, home furnishings chain Pier 1 Imports Inc. said Tuesday it is trying to lower its store rents, will cut staff and close an Illinois distribution center in an effort to trim costs.

The company will cut 10 percent of full-time equivalent positions in its distribution center, home office and field administration units. The exact number of jobs affected wasn't immediately available.

Separately, Pier 1 has started negotiating with landlords to lower store rents. The company said it will have to record early termination agreements to close up to 125 underperforming store locations if it can't negotiate cheaper rents. The negotiations should be completed by the end of May, Pier 1 said.

The company expects to incur costs of about $5 million for severance, outplacement and other charges, and will record one-time charges for store closings, if necessary.

Shares closed earlier up 2 cents at 35 cents.

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