Pier 1 Imports Comments on Letter from Alden Global Capital
October 14 2016 - 3:11PM
Business Wire
Experienced, Highly Qualified Board Focused
on Executing Strategy
Demands for Abrupt Change Are Not
Constructive
Pier 1 Imports, Inc. (NYSE: PIR) today issued the following
statement in response to a public letter today to its Board of
Directors from Alden Global Capital:
“Pier 1 Imports’ Board of Directors and management team are
committed to acting in the best interests of all shareholders. The
Company is making significant progress under its omni-channel
strategy, with e-commerce now representing 20% of Pier 1 Imports’
sales. As we enter the critical holiday season, the Board of
Directors is confident that the programs underway will drive sales
and expand market share -- and recent operating results are
encouraging. The Board remains focused on the search for a new CEO
to guide and execute the Company’s strategy and create increased
value for all shareholders.
“Pier 1 Imports values constructive input from investors and
regularly engages in dialogue with its shareholders regarding
strategy and performance, including five recent meetings and calls
with Alden. Nevertheless, Alden has demanded that the Board be
immediately reconstituted to include multiple Alden designees,
including its President Heath Freeman. This ultimatum, coupled with
the threat to run a consent solicitation to replace the Board, is
not constructive and could erode shareholder value by undermining
the Company’s announced CEO search and disrupting its business in
the holiday selling season. Pier 1 Imports has a highly qualified,
diverse Board with significant retail experience which was
reelected with greater than 98% approval by our shareholders at our
annual meeting less than four months ago. Nonetheless, we are
mindful of Alden’s significant investment and will continue to
engage and attempt to work collaboratively with Alden and all our
stockholders to help the Company achieve success and enhance value
for all stockholders."
Financial Disclosure Advisory
Except for historical information contained herein, the
statements in this press release or otherwise made by our
management in connection with the subject matter of this press
release are forward-looking statements (as such term is defined in
the Private Securities Litigation Reform Act of 1995) and involve
risks and uncertainties and are subject to change based on various
important factors. This press release includes forward-looking
statements that are based on management’s current estimates or
expectations of future events or future results. These statements
are not historical in nature and can generally be identified by
such words as “believe,” “expect,” “estimate,” “anticipate,”
“plan,” “may,” “will,” “intend” and similar expressions.
Management’s expectations and assumptions regarding future results
are subject to risks, uncertainties and other factors that could
cause actual results to differ materially from the anticipated
results or other expectations expressed in the forward-looking
statements included in this press release. These risks and
uncertainties include, but are not limited to, the effectiveness of
the Company’s marketing campaigns and customer databases, consumer
spending patterns, inventory levels and values, the Company’s
ability to implement planned cost control measures, expected
benefits from the real estate optimization initiative, including
cost savings and increases in efficiency, changes in foreign
currency values relative to the U.S. Dollar, and the Company’s
ability to retain a new CEO. These and other factors that could
cause results to differ materially from those described in the
forward-looking statements contained in this press release can be
found in the Company’s Annual Report on Form 10-K and in other
filings with the SEC. Refer to the Company’s most recent SEC
filings for any updates concerning these and other risks and
uncertainties that may affect the Company’s operations and
performance. Undue reliance should not be placed on forward-looking
statements, which are only current as of the date they are made.
The Company assumes no obligation to update or revise its
forward-looking statements.
Pier 1 Imports, Inc. is the original global importer of home
décor and furniture. Information about the Company is available on
www.pier1.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20161014005788/en/
Investors:Pier 1 Imports, Inc.Bryan Hanley,
817-252-6083orMedia:Sard Verbinnen & Co.George Sard/Robin
Weinberg, 212-687-8080
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