Six weeks after Pier 1 Imports was notified that it could lose its New York Stock Exchange listing, the company's share price has perked up and moved back above $1.
The Fort Worth-based home furnishings retailer's shares have closed above $1 a share for five consecutive trading days and closed at $1.29 on Tuesday.
It's stock is not out of the woods yet, but now shares are on a path that could avoid the expense of a reverse stock split, which was one cure the company had suggested.
First, within a six-month period after receiving the NYSE notice, a stock has to have a closing price of at least $1 a share on the last trading day of any month during the cure period.
If Pier 1's stock price closes at $1 or more on Thursday, the last day of February, the clock starts on the second hurdle. It has to maintain an average closing share price of at least $1 over a consecutive 30-day trading period.
The chain of 987 stores was notified on Jan. 15 that it was no longer in compliance with the NYSE's minimum stock price requirements. At that point, its shares had traded below $1 for 30 days, triggering a six-month period when the company can work to retain its listing.
Pier 1 has has struggled to get its sales and profits up while it built its e-commerce business and competitors gained market share.
A turnaround plan wasn't working and the board named Cheryl Bachelder interim CEO in December. The former CEO of Popeyes Louisiana Kitchen has been credited with fixing the fast-food chicken chain and has been on Pier 1's board since 2012.
So far, Bachelder has filled a couple of key positions.
Earlier this month Lance Wills was appointed executive vice present and chief information officer. He comes to Pier 1 with almost 23 years of information technology experience and most recently was global technology officer for Toys R Us.
In late January, Pier 1 hired Robert Bostrom, formerly of Abercrombie & Fitch, to be executive vice president, chief legal and compliance officer. Pier 1 will report its next quarterly results in April.
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