Pier 1’s Choice of CEO Raises the Specter of Bankruptcy
A future bankruptcy has been in the cards for Pier 1 for a while now, and the struggling retailer’s choice of CEO has some analysts even more wary. Pier 1 has made Robert Riesbeck, its chief financial officer, its chief executive officer. He will also retain the CFO position. While analysts don’t believe bankruptcy is in any way the plan at this time, the choice of someone with a finance background could indicate preparation on Pier 1’s part to take that route.
Still, investors responded positively, sending shares up on the news and on the announcement that the New York Stock Exchange was granting the company an extension to avoid delisting.
Whatever the plan, Riesbeck will need to move quickly to get Pier 1 back into shape. The company reported in September that its losses had nearly doubled this past year on a drop in overall sales of more than 14%.