Pier 1 Imports Inc. (fka PIRRQ)

[leftovers]

Ailing home decoration retailer reports another disappointing quarter, causing new management to take some decisive action.

Company intends to reduce its store base by almost 50% and close a number of distribution centers while also laying off about 40% of its headquarters staff.

Management warns of substantial doubt regarding the company's ability to continue as a going concern resulting in a potential debt default.

Expect the company to file for bankruptcy in the not too distant future to successfully execute on the announced store closures and secure debtor-in-possession financing.

Investors should avoid the shares or exit existing positions given the elevated risk of getting wiped out.