35 replies to this topic

[jefffwd]

Report: Jacobsen preparing Pier 1 takeover bid

Dallas Business Journal
3:06 PM CST Tuesday

Pier 1 Imports Inc. shares rose more than 20 percent on the heels of a report Tuesday that Danish retail magnate Jakup a Dul Jacobsen is preparing to buy the company.

A Reuters report Tuesday, citing sources familiar with the situation, said Jacobsen, who owns a minority stake in Pier 1, was planning to make an offer for the rest of the shares.


In March, one of his companies bought the company's London subsidiary, The Pier Retail Group Ltd., for about $15 million, and in September Pier 1 said it was in discussions with Jacobsen about a possible transaction.

On Tuesday, Pier 1, responding to a notice by the New York Stock Exchange about unusual trading activity, said the company does not comment on "market rumors or speculation including unusual market activity."

A spokeswoman for the company declined to comment further.

Pier 1 (NYSE: PIR) said in September that it had entered into a confidentiality agreement with one of Jacobsen's companies in connection with a "possible negotiated transaction with Pier 1."

The Fort Worth-based home furnishings retailer has been working to reverse declining sales and traffic for the past two years. The company has posted losses in its last six quarters. Recently it has launched new, modern furnishings lines, but has continued to struggle to get people into its stores.

In October, the company announced that Marvin J. Girouard, chairman and CEO since 1998, would retire at the end of February.

In August, Pier 1 agreed to sell its private label credit card business to JP Morgan Chase & Co. for $155 million.

[safly]

50 bucks say they DON'T nibble.

[cberen1]

50 bucks say they DON'T nibble.

I'll take that bet. I heard about the deal a month or two ago from some folks inside. They feel pretty good about it.

[safly]

DEAL!

I hope there isn't some Forum rule against improvised on-line FORUM GAMBLING ???

[CurtisD]

Pier One is closing another 78 stores and corporate layoffs will occur early next year. I have a relative who's worked at the headquarters for fifteen years and its been hinted to her that she should began looking for another job now. Pier One, Radioshack, and Bombay Co. are all pretty much in the same boat. Strange that three of FW's most well know companies all have suffered from what seems to be the same lack of vision. I don't know if any of them will totally fold, well maybe Bombay Co., but I think they will all downsize so much that they will become very small players in thier markets. Not good for a city that has such little corporate prescence. Oh well, there's still XTO.

[cberen1]

They aren't dead yet. Bombay has always been a bit player, but they've got a new CEO and we'll have to see. Radio Shack and Pier 1 have been on hard times before. RadioShack is trading well above its low back in June and is stable, with positive and growing earnings. It's trading at a 23 P/E multiple, inline with the industry. They're fine, although underperforming. Pier1, who knows. Consumer retail is tough. They will have to reinvent themselves, but they own their building and can sell it into a lease back deal and generate some meaningful cash. New CEO, new year, (new owner) anything could happen.

Oh well, there's still XTO.

There are also the largest home builder in the country and one of the largest auto finance companies in the U.S., the largest airline and one heck of a defense contractor. Don't cry for Ft. Worth.

[vjackson]

We were discussing RS at work last week. And the company is still in deep trouble. If things don't seriously turn around quickly, you can expect more store closings and layoffs within the next year. And don't forget that buyout rumors have been hanging around the company for years. (One of the big players here has a sibling high up on the RS food chain, everything he's said about RS has always been on the mark).

[CurtisD]

There are also the largest home builder in the country and one of the largest auto finance companies in the U.S., the largest airline and one heck of a defense contractor. Don't cry for Ft. Worth.

Oh the insecurity!!! My comment about XTO was a compliment. The company is doing some good things in FW. And Lockeed Martin recently laid off how many?? If you know anyone that works for Horton, ask them if the term cutback is floating around the office. And do you really feel the presence of American Airlines in FW? And not to mention the tons of people laid off there. There's a reason why the company is always mistakenly reported as being based in Dallas..it has a much bigger presence there. I'm not crying for FW's lack of both corporate presence and white collar jobs. I probably didn't make my post clear. It was more to focus on what seems to be constant layoffs, downsizing, and instability of the city's more well-known companies. Not that Dallas or any other city is immune to that. But when you don't have that many large companies based in your city, the job losses are more likely to be felt and noticed. That's all.

[cberen1]

And Lockeed Martin recently laid off how many??

After hiring how many?

If you know anyone that works for Horton, ask them if the term cutback is floating around the office.

Does this change the facts that, 1. based in FW or 2. still the largest homebuilder?

And do you really feel the presence of American Airlines in FW?

Well, I feel it when I hang out downtown with my pilot and management friends (not at the same time, obviously). So I guess the answer is yes. I don't understnad what you're getting at?

I'm not crying for FW's lack of both corporate presence and white collar jobs. I probably didn't make my post clear.

Well, you didn't really say that. What you said was " Not good for a city that has such little corporate prescence." And I was just refuring the notion that Pier1, RadioShack and Bombay Company are "it"

But when you don't have that many large companies based in your city, the job losses are more likely to be felt and noticed.

I think if your a small manufacturing town , yeah, this is true. When Goodyear(it's goodyear, right?) shuts down its factory in Tyler it's going to be a problem. But FW is large city with a pretty diverse employment base. No one employer, sector or industry has a strnglehold on employment. If Pier1 closed its doors tomorrow, the biggesst impact would be a temporary glut in the commercial real estate market downtown, not a hit to the general local economy. Housing pricies wouldn't be affected. Small business wouldn't be impacted.

[vjackson]

Although Pier One and Radioshack are in really bad shape, I wouldn't write them off just yet. Remember how bad off JC Penny and 7-11 were not so long ago?? Those companies have done a complete turnaround after years of questionable futures.

IMO, Pier One has a better chance of a comeback than Radioshack. Which is really sad, because I've always thought RS was FW's best and most recognizable corporate citizen. The Tandy Center, the company's name lit up brightly, and years of free parking and a free subway.

One of the business journals had a really good article about the state of RS. It's sad to say, but this company has had its head in the sand for way to long. Many analyst question weather the stores are even relevant now. When it seemed Americans started to desire big box electronics stores like Best Buy and Circuit City, that showcased a wide selection of products, RS still stuck with the small, cramped stores tucked away in strip centers and malls that had little of the merchandise and brands that consumers wanted. Then stores like Walmart and Target really increased thier electronics stock and became major players in the electronics game also. Add to that, (according to the article) the babyboomers that made RS huge, are much older now and are also favoring the big electronic/computer stores just because according to many of them, there's a broader range of merchandise, things are easier to find and more competitive prices. And although RS connected with babyboomers years ago the store is having difficulty attracting younger shoppers.

The question would be..why didn't RS introduce a big box concept years ago??

To get back to profitibility, many in the business community say RS will have to downsize massively to less than half the stores and kiosks it has now.

[JBB]

You make a great point in your first paragraph. Haven't RS and Pier 1 both been in questionable shape in the past and bounced back?

[hooked]

The question would be..why didn't RS introduce a big box concept years ago??

Remember Incredible Universe?

[vjackson]

The question would be..why didn't RS introduce a big box concept years ago??

Remember Incredible Universe?

That's right, that was mentioned, and the fact that it failed. It must've been a massive failure because I remember when I read the article, I had never heard of Incredible Universe. Do you know how many stores they had and where??

And I know, JBB, that RS, and P1 have been in serious trouble before, but I think now the competition has gotten so fierce, they're having a lot more difficulty pulling out of it. I don't know if you've been to Target's website, but they have furniture that looks just as good if not better than P1. I ordered my bed from there. I was somewhat skeptical of the quality, but the bed is good and sturdy and attractive to look at. If you would have told me five years ago, I would be purchasing a bed for my DTD loft from Target, I would have thought you were nuts.

And I'm not without hope for RS, but I think they have a very difficult road ahead of them. I don't remember when the last time I even went into one. Its probably been ten years.

[JulieM]

Ahhh the big flop that was Incredible Universe. They bought a huge swathe of land in Houston right near the 59/610 interchange. Now it's one of the Harris County Community College campuses.

I believe there was one at Matlock and I20.

[cberen1]

Ahhh the big flop that was Incredible Universe. They bought a huge swathe of land in Houston right near the 59/610 interchange. Now it's one of the Harris County Community College campuses.

I believe there was one at Matlock and I20.

I think RS was a little ahead of its time with IU (and a little off the mark). It didn't actually bomb, but it didn't set the world on fire. Most of the IU stores are still open as Fryes Electronics, the Sam's Wholesale of Electronics. As far as I can remember RS didn't take a write-off in the sale.

VJ is exactly right about RS needing to become relevant again. They've positioned themselves fairly well in the wireless business, but they need a second carrier. They also need better pricing. I probably go to RS about 3 times a year, usually for some kind of cable fitting something like that. I think they've got a good chance to bring it around, but they need an identity.

I see Pier One's problem as primarily a function of product line up and promotion. Their business is a lot like Gap and Abercrombie. They have to keep up with fashion and be a little different. They have been able to do that off and on over the years. It's always feast or famine. They're definitely in a famine right now. The upside is that the right line up and promotion can swing things in their favor pretty quickly. Unlike their biggest competitor, they have a lot of advertising experience. So if they can get the product right, they can get the message out pretty quickly. On the other hand, their biggest competitor is kicking butt without advertising. So maybe that says something.

[JBB]

Most of the IU stores are still open as Fryes Electronics, the Sam's Wholesale of Electronics.

The Fryes in Arlington makes the average Wal Mart store look like a Nordstrom. That place is a dump of the highest order.

[Fort Worthology]

Most of the IU stores are still open as Fryes Electronics, the Sam's Wholesale of Electronics.

The Fryes in Arlington makes the average Wal Mart store look like a Nordstrom. That place is a dump of the highest order.

Most Fry's are, in my experience.

[vjackson]

On the other hand, their biggest competitor is kicking butt without advertising. So maybe that says something.

Who is P1's biggest competitor?

[vjackson]

Most of the IU stores are still open as Fryes Electronics, the Sam's Wholesale of Electronics.

The Fryes in Arlington makes the average Wal Mart store look like a Nordstrom. That place is a dump of the highest order.

Most Fry's are, in my experience.

The one I've gone to in east Dallas, near NW highway and 635, has a western/cattle theme. There's a fake corral with paper mache cattle above the entrance, and fake cattle and rustic western fencing is all over the store. It's absolutely awful!!! However I did go to a newer Fry's near GBush turnpike in Garland that was extremely nice. Like the Taj Mahal of Fry's.

[Dallastar]

Most of the IU stores are still open as Fryes Electronics, the Sam's Wholesale of Electronics.

The Fryes in Arlington makes the average Wal Mart store look like a Nordstrom. That place is a dump of the highest order.

Man I hope Radio Shack makes it, that was my favorite store when I was young. My brother and I would go in one for hours, and they would always let us play with the radio controled cars, and all the neat little gadgets. And the salesman were always super nice.

One thing I truly love about RS is that I can run in and run out, in Best Buy or Circuit City that's never gonna be a quick trip (but thats there intent theres so much to see and do you're gonna always walk out of there with something).

(

[cberen1]

Who is P1's biggest competitor?

It depends on who you ask. The insiders who see Pier 1 as a furniture and upscal gift store will tell you it's Pottery Barn. The insiders who see Pier 1 as a knick-knack decorating center will talk about Target, Garden Ridge and smaller regional competition. I was referring to Pottery Barn, who has a tremendous catalog presence. Biggest was probably the wrong word since PB is a relatively small company (compared to Target), but if there was no Pattery Barn, Pier 1 would have fewer problems.

[hooked]

. . . but if there was no Pattery Barn, Pier 1 would have fewer problems.

So would I. My wife loves that place.

[vjackson]

At a crossroads
3 Fort Worth companies experienced problems in 2006 and face hard 2007By HEATHER LANDY
STAR-TELEGRAM STAFF WRITER

JUPITERIMAGES
More photosFORT WORTH -- It was a terrible year for a handful of retail chains, unless you narrow your focus to Fort Worth, in which case it was a terrible year for most of them.

RadioShack Corp., Pier 1 Imports and The Bombay Co. all grappled with unprofitable quarters and declines in stock prices.

The year also brought the three chains to a crossroads in management, morale and competitive relevance, which means that their chief executives will have to spend 2007 mapping which way to go on several fronts.

RadioShack and Bombay will enter the new year with different CEOs than they had last New Year's Day, and a change in management -- and perhaps even ownership -- is expected soon at Pier 1, with CEO Marvin Girouard retiring at the end of February.

Although the jolts the companies sustained in 2006 had plenty of unhappy consequences, including job cuts at the corporate level for RadioShack and Bombay, they eventually may prove to have been an effective wake-up call for the chains.

"RadioShack is facing challenges because it has allowed its stores to get old and tired. Bombay has stuck with looks that were popular 10 years ago, and Pier 1 is trying to remake itself into something nobody wants to buy," said retail consultant Britt Beemer, chairman of America's Research Group. "Pier 1 has maybe been a little more radical in its changes, but at RadioShack and Bombay, they've tried to stay the course for too long and have not responded to the marketplace."

At stake is the long-term viability of all three chains in an increasingly competitive industry and in a city that has long relied on its high-profile corporate citizens as a source of community involvement and civic pride.

RadioShack

RadioShack began 2006 on shaky ground, coming off a holiday season that was weaker than expected and replacing Verizon with Cingular in a wireless-phone-supplier change that was more disruptive than expected.

The company's problems came to a head in February, when CEO Dave Edmondson faced the twin challenges of pacifying Wall Street with a restructuring plan and defending his career in the wake of allegations that he misstated his academic credentials on his résumé.

He succeeded at neither. Investors concerned about RadioShack's weakening financial prospects punished the stock, and the company's board, which supported its CEO when the Star-Telegram first published its investigation into Edmondson's credentials, accepted his resignation a week later.

Dismayed employees vented their frustration on Star-Telegram message boards and elsewhere on the Internet. The angst appeared to dissipate as interim CEO Claire Babrowski focused the company on its restructuring plan.

But her tenure was short-lived.

In July, the company replaced Babrowski with Kmart turnaround veteran Julian Day, its fourth CEO in less than two years.

Day quickly moved to slash more than 400 jobs at RadioShack's headquarters.

He also canceled the company's quarterly conference calls with investors and analysts, leaving Wall Street guessing as to whether Day might want to dress up the company for a sale or reinvent the chain with a niche that can withstand the competitive onslaught from Best Buy, Circuit City, Wal-Mart and Target.

If Day has a plan, he isn't publicly acknowledging it.

Some analysts who once considered RadioShack a prime takeover target have been rethinking that, in part because none of the asset-hungry investment firms that have been buying other retail chains have appeared to show much interest in RadioShack.

But others maintain that with Day's ties to hedge-fund maverick Eddie Lampert -- who orchestrated Kmart's merger with Sears Roebuck after Day's restructuring at Kmart took hold -- a deal for RadioShack remains a possibility.

Meantime, Wall Street is preparing for RadioShack to report another difficult holiday season.

Pali Research analyst Stacey Widlitz, who has a "sell" rating on RadioShack shares, said she has found "significant overlap" between RadioShack and Wal-Mart's lineup of electronics this season, with Wal-Mart more often offering the lower price.

Investors will be "looking for some sign of life" from RadioShack when the holiday results are disclosed, Widlitz wrote in a note to clients this month. "We simply do not have any confidence that will happen."

Pier 1

In the home-furnishings industry, confidence is also waning at Pier 1, where a string of splashy attempts to reinvigorate the chain have failed to resonate with consumers.

Customer traffic was weak throughout 2006, extending the chain's streak of disappointments into a third year.

The company has tried everything from focusing on low-price basics to focusing on more upscale niche products; from introducing a contemporary furniture line called Loft 21 to emphasizing the chain's more traditional offerings; and from redesigning its store displays to expanding the circulation of a seasonal catalog mailing.

None of it worked. In May, the company hired investment bankers to help evaluate its options.

Pier 1 sold its stores in the U.K. and Ireland, and brought in $155 million from the sale of its credit-card operations. It also cut its dividend and announced the planned retirement of Girouard, a longtime Pier 1 executive who was wrong when he predicted at the company's annual shareholders meeting in June that the company had "a good chance to get back to profitability" in the third or fourth quarter.

The company is expected to lose 30 cents a share in the fourth quarter ending in February, based on the average estimate of 14 analysts surveyed by Zacks Investment Research.

Bombay

Wall Street has also been skeptical of the prospects for a turnaround at Bombay, which enjoyed a brief resurgence in 2003 before some merchandising missteps and stiffening competition sent the chain back to the drawing board.

Merchandising chief Steve Woodward has ushered in a more contemporary, streamlined look for the British Empire-inspired chain, but it hasn't been attracting new customers.

New CEO David Stewart, former president of Blockbuster Video Canada, has cut jobs and ended the company's experiment with children's furniture.

But he may have to take a more radical route to revive Bombay, which entered this year's holiday season with less than half the cash it had on hand a year earlier.

"I don't think any of them will go away tomorrow, but they'd better start making changes," Beemer said. "You're either on trend or you're dead -- that's the challenge that retailers have today."

CLOSEOUT SALES

Fort Worth's three hometown retail chains limped through 2006. All are under new management or soon will be. One or two could end the coming year with a new owner.

Feb. 7: Scandinavian businessman Jakup a Dul Jacobsen discloses 9.9 percent stake in Pier 1.

Feb. 14: A Star-Telegram report raises questions about RadioShack CEO Dave Edmondson's credentials.

Feb. 17: RadioShack announces a big earnings slide and a plan to close at least 400 stores.

Feb. 20: Edmondson resigns.

March 3: Bombay CEO James Carreker says he will retire in June.

May 5: Pier 1 hires investment bankers to evaluate its alternatives.

June 6: Bombay hires David Stewart as CEO.

July 6: RadioShack hires Julian Day as CEO.

July 22: RadioShack reports its first quarterly loss since 1998.

Aug. 29: RadioShack lays off more than 400 headquarters employees.

Sept. 21: Jacobsen says he is interested in buying all of Pier 1.

Sept. 30: Pier 1 CEO Marvin Girouard says he will step down in February.

Nov. 13: Bombay reports that its third-quarter loss more than tripled from the year before.

STOCK DECLINES


Company YTD return Close*
RadioShack -19.4% $16.94
Pier 1 -29.7% $6.14
Bombay -56.4% $1.29

*Dec. 27

SOURCE: Bloomberg

TOMORROW

Real estate

Rising foreclosures, slowing construction and a movement to downtown condominiums marked 2006 in residential real estate.

[CurtisD]

If Pier1 closed its doors tomorrow, the biggesst impact would be a temporary glut in the commercial real estate market downtown, not a hit to the general local economy. Housing pricies wouldn't be affected. Small business wouldn't be impacted.

You're joking right?? Anyone logical person knows that job loss has a domino effect. And in a city not exactly known for having lots of white collar jobs or high-paying jobs, the huge white collar job losses from companies like RS and P1 and the loss of the high-paying assembly jobs from LM will definitely (and have been) be felt. And small businesses feel the impact the worse. One of the main reasons cited for the huge foreclosure rate is job loss. One company may not make a huge difference,...but three. And the fact that you don't hear of companies massively expanding and relocating to FW everyday doesn't make one think the city can easily rebound from huge job losses. I went to Frisco last week. If you want to know where the job growth is, take the tollway from downtown Dallas and head north. Then take I35 from DTFW and head north. Where to you think it would be easier to find a new job after losing your well paying job at Pier 1??
Ask my cousin how easy it is to find a well paying corporate job in FW. After 40 years in FW and over 15 years at P1, she found a new job that pays a little more....in west Plano. After trying to keep her job search to the FW area for months, she realized she wasn't going to find what she needed. So at 40 she's packing up the kids and moving. She lives in N. FW where this year there's been four foreclosures on her street....hopefully she can sell her house.

If these job losses don't impact the local economy, they sure as hell impact people.

[cberen1]

If Pier1 closed its doors tomorrow, the biggesst impact would be a temporary glut in the commercial real estate market downtown, not a hit to the general local economy. Housing pricies wouldn't be affected. Small business wouldn't be impacted.

Ask my cousin how easy it is to find a well paying corporate job in FW.

It wouldn't be appropriate to speculate on why your cousin had been unable to find work and I'm sorry for her difficulty. Now, to highlight some of the things stressed in third grade reading comprehension lessons, what I said was that the biggest impact would be a real estate impact. If I had said the "only" impact would be to the RE market, you are correct, that would have been illogical. It's a good thing I didn't say that.

I'll counter your statistically significant sample (n=1) with one of my own. I hired a number of people into well paying corporate jobs in FW in 2006. I'll probably do it again 2007. There are plenty of jobs to be had as far as I can tell.

On the topic of good things happening. RS stock is up about 12% today on improved profit outlook and raised earnings guidance. Q4 profit will be better than previously forecast by analysts. Turnaround CEO, Julian Day, has been able to shore up the balance sheet and take the first steps toward long-term improved profitablity.

Hopefully Marvin's successor will have similar luck at P1 when the old guy steps down.

As far as LM goes, I read this weekend where the Asst. Secretary of Defense has ordered the Navy and the Air Force to increase orders for the JSF in '07 and '08. Maybe the sky isn't falling, just yet.

[CurtisD]

^^^
Radioshack's stock is up 11% because of cost-cutting and inventory control. Store sales are still falling and the company is still getting its butt kicked by the competition. (Did we read the same article??) RS's profit and stocks would probably eventually rise if it closed more stores and laid off more staff, so what's your point. The bottom line is store sales.

I"m glad you're able to find some corporate jobs for some folks in FW, maybe you alone can change FW's blue collar reputation. But explain to me whenever I do job searches for corporate or high paying IT jobs in FW, most of my results are in Dallas county??? Even on this forum, its constantly mentioned that FW needs more better paying jobs. But you are a corporate headhunter or something of that sort right?? So I would expect you to talk up the city in which you recruiting for...no matter how much you streeeeetch the truth. It's just business after all.

[cberen1]

^^^
Radioshack's stock is up 11% because of cost-cutting and inventory control. Store sales are still falling and the company is still getting its butt kicked by the competition. (Did we read the same article??) RS's profit and stocks would probably eventually rise if it closed more stores and laid off more staff, so what's your point. The bottom line is store sales.

Read closer. I said Day has shored up the balance sheet and taken good first steps toward long-term improved profitability. Tell me which part of that is not true?

But explain to me whenever I do job searches for corporate or high paying IT jobs in FW, most of my results are in Dallas county???

Are you under the impression that Monster, Jobing, etc. are the only ways to find a job? In my experience, that has not been a good way to find qualified candidates for white collar jobs. At least of the skill level I'm looking for. It seems to work well when I need a secretary or a clerk. And I guess I've probably got one good employee from those listings, but I typically don't even list on Monster anymore. Waste of money.

Even on this forum, its constantly mentioned that FW needs more better paying jobs.

Name a city that doesn't need more high paying jobs. Besides, who are you to comment about what is "constantly" mentioned on this board? You've been here all of a month or two. On another thread just yesterday people were commenting about what a great time it is to be talented and on the market in FW.

But you are a corporate headhunter or something of that sort right?? So I would expect you to talk up the city in which you recruiting for...no matter how much you streeeeetch the truth. It's just business after all.

Actually I'm an officer in a locally based mid-cap NYSE traded company. We employee about 5,000 people around the country, about 1,800 of those locally in five different facilities. I manage a group of financial analysts and dba's. I have no need to stretch the truth here.

[CurtisD]

^^^
Such a big job for someone who has so much time to post on forums. Well, since you can be anything on the internet, I'll take your word for it (not that I care).

And I've only posted on this forum recently, but I've visited it for years.

(No need to counterback with the fact that I'm posting on the this forum on a Tuesday morning. I usually work out of my home and perform most of my work in the evenings)

[cberen1]

^^^
Such a big job for someone who has so much time to post on forums. Well, since you can be anything on the internet, I'll take your word for it (not that I care).

And I've only posted on this forum recently, but I've visited it for years.

(No need to counterback with the fact that I'm posting on the this forum on a Tuesday morning. I usually work out of my home and perform most of my work in the evenings)

Swing by my office some time. I'm on the 39th floor of Burnett Plaza. Just ask the receptionist and she can direct you to my office. I envy you a little bit. My work can't be done from home.

[vjackson]

In case noone saw the articles in the DMN and S-T, P1 has a new CEO and the "takeover" word is still being tossed around. One of the things I found interesting was one of the suggestions for saving the company is the do what Radioshack did, a sale lease-back deal on the company's headquarters.

From the S-T:

Possible fixes

Closing stores.

Cutting jobs.

Selling the headquarters as part of a sale-lease-back deal.

Redefining the chain's merchandising strategy.

I'm not advanced enough in the commerical real esate business to know how lease-back agreements work. But I'm assuming the company gets a wad of cash for the building and then leases it from the new owners...right??

[cberen1]

I'm assuming the company gets a wad of cash for the building and then leases it from the new owners...right??

Correct. P1 assumes they have a couple hundred million on the balance sheet that they can convert from fixed asset to cash. That seems a little high to me, but there is a good chunk of cash to be had.

[JKC]

It gets a little interesting on some angles. The HQ was built with tax incentives that diminish if a portion is leased to the 3rd party office market ( which is desired for a sale and leaseback where extra space is available) or if P1 ever discontinues having their HQ there. Creates the wierd condition of public support for very new office development in the strongest office market in the US. etc.

But, it is a move that has to occur at some point as the company tries to reposition. That capital will expected to be put into the core competency (home furnishings at the moment) at some point.

[Urbndwlr]

I understand how people react critically to the idea of incentives that supported the construction of the Pier 1 and Radio Shack buildings. Without digging deeply into the numbers, I do believe that there is a true, long-term benefit to our city when buildings such as those are built in our city's core rather than on cheaper land on the outside of town. Most of us are aware of the well documented costs of sprawl. This appears to be an effective way to reduce sprawl by reinforcing the critical mass of industry in our city's center. Besides, when companies move downtown, others want to be nearby. Their presence drives up the tax value of properties nearby, making the investment (tax abatement) worthwhile. Even better, the Pier 1 building is a marvelous building - an improvement to our skyline.

[vjackson]

According to the news last night, one of P1's shareholders not only recommends closing 300 stores, but leasing out space in the headquarters building. Several corporate headquarters are finding themselves in the leasing business these days. Locally, EDS has remodeled and is looking for tenants for one of its buildings on its Plano campus. I would love to know how much empty space P1 has.

[cberen1]

I would love to know how much empty space P1 has.

I've got a friend over there that said they have people throughout the building, but that the density isn't very high. Also, the density got a little lower last week when about 100 people were laid off across all departments. It looks like prep-work for a sale to me.

[vjackson]

I would love to know how much empty space P1 has.

It looks like prep-work for a sale to me.

Sale of the building or the company??? And if P1 was to sale the building and remain in it, how does that work in regards to the incentives?? Didn't RS do something similar??