Pier 1 Imports Sells English Subsidiary

March 19, 2006  by in UnCategorized   

By Home Furnishings Business in on March 2006 Fort Worth, Texas-based Pier 1 Imports announced Monday that it has sold its England-based subsidiary The Pier Retail Group Limited and its subsidiaries, collectively called The Pier, to Palli Limited for about $15 million.

Palli Limited is a wholly owned subsidiary of Lagerinn ehf, an Iceland corporation owned by Jakup a Dul Jacobsen. Lagerinn and Jacobsen own about 9.9 percent of the company's common stock.

As of February 25, the company operated over 40 The Pier stores located in the United Kingdom and Ireland.

Pier 1 recorded a non-cash pre-tax impairment charge of about $7 million in the fiscal year 2006 fourth quarter to state its investment in this subsidiary at estimated fair value as of February 25, 2006. The results of this subsidiary will be classified as discontinued operations for all periods presented in Pier 1's consolidated financial statements.

The retailer's fourth quarter and fiscal 2006 year-end results and March sales will be reported April 6, and the company will hold a conference call the same day.