The year did not end well for home furnishing retailer Pier 1 Imports
Pier 1's management has been trying to reverse the problems with more aggressive marketing online and in its catalog, and greater experimentation with its merchandise mix. However, consumers are simply not responding. If anything, it seems Pier 1's core customer base is moving toward competitors such as Target
In light of the sales plunge, it's no surprise that Pier 1 eliminated its dividend last October. For the first nine months of 2006, the company generated negative cash flows from operations of $84 million; Pier 1 currently has $172 million in the bank.
Back in May, Pier 1 retained JPMorgan Chase
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Fool contributor Tom Taulli does not own shares mentioned in this article. He is currently ranked 758 out of 17,523 in CAPS. Bed Bath & Beyond is also a Stock Advisor selection, while JPMorgan Chase is an Income Investor pick. The Fool has a disclosure policy.