Pier 1 Dives After Unveiling Staff Cuts, Reorganization Plan

A Pier 1 Imports retail store.

Photographer: Luke Sharrett/Bloomberg
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Pier 1 Imports Inc. shares plunged close to 40% a day after the home-furnishings retailer reported more falling sales, plans to trim staff and close hundreds of stores.

The company has also drafted a bankruptcy plan and canceled some orders, according to people with knowledge of the matter. Late on Monday, Pier 1 reported a wider third-quarter loss and about an 11% decline in comparable sales, a key measure for retailers.