(Bloomberg) -- Pier 1 Imports Inc. announced a plan to cut costs at the chain, which is under siege from newer online rivals. The company also announced an interim chief financial officer from AlixPartners LLP, a company known for its turnaround and restructuring practice.

• Part of Pier 1’s “action plan’’ announced Wednesday includes generating cost savings and benefits of as much as $110 million in fiscal 2020 “by resetting its gross margin and cost structure.’’ The company is considering closing as many as 45 stores in the current fiscal year, and this could reach as many as 15 percent of total locations if performance goals aren’t met.

Key Insights

Market Reaction

• Shares fell as much as 22 percent after the close of regular trading in New York. They’d already doubled year to date, but could still be in danger of being taken off the New York Stock Exchange if they spend much more time below the $1 mark.
• Read the company statement here.

©2019 Bloomberg L.P.