Pier 1 to Shut More Stores, Cut Debt in Expanded Turnaround (1)

Pier 1 Imports Inc. is planning a significant increase in store closings as the distressed home-furnishings chain seeks to cut costs and turn around operations.

The company expects to announce the new round of shutdowns when it reports results for its third fiscal quarter next week, according to people with knowledge of the plan. The company aims to restructure out of court, in part by closing stores and using the savings to boost liquidity, said the people.

Filing for bankruptcy is an option under consideration if Pier 1 falls short of its goals, said the people, who asked not to ...