Pier 1 Imports said it has temporarily laid off 65% of its headquarters employees in Fort Worth and some distribution center employees until further notice. The company didnt say how many employees that represented, but the figure is in the hundreds. Last year, the company still had more than 800 employees in Fort Worth.

The Fort Worth-based home furnishings retailer has been operating in Chapter 11 bankruptcy since Feb. 17, and CEO and chief financial officer Robert Riesbeck said Tuesday that the severe staff cuts are an attempt to preserve funds.

For the employees who remain, wages are being reduced by 20%. For executive vice presidents and above, pay cuts are 50%. Senior vice presidents salaries are being cut 30%.

All of its 1,000 stores are closed. Half of those stores were in the process of closing permanently before the coronavirus pandemic forced the closing of the rest of its stores Sunday. The retailer said its still processing orders online. Its board members also are taking a 50% pay cut.

A hearing is scheduled for Thursday in the U.S. Bankruptcy Court in Richmond, Va., to consider alternatives, according to a court motion.

In light of these circumstances, the company, its lenders and the unsecured creditors are working constructively to discern the best path forward for these chapter 11 cases, the filing said. These parties remain in discussion regarding how to best maximize the value of the company at this point and how to proceed with the currently scheduled auction and the other case milestones.

Pier 1 had said previously that it had interested bidders. The bid deadline was Monday, and the court had set March 31 as the auction date with a sale and confirmation hearing on April 23.

Now that coronavirus has temporarily shut down much of the retail industry, analysts have included Pier 1 on lists of retail companies that are likely casualties.

Like many retailers that have temporarily closed stores in response to COVID-19, we are making difficult decisions that are necessary to preserve value in our business for the long-term benefit of our associates, customers and other stakeholders, Riesbeck said in a statement. We are incredibly grateful to our associates for their commitment to our customers and our company, and we will continue to take appropriate actions to position Pier 1 for the future.

Twitter: @MariaHalkias

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Pier 1 Imports lays off 65% of its staff at Fort Worth headquarters - The Dallas Morning News