Saturday, May 20, 2006

Dr. Ferrari & Pier 1's Slow Death

For the past 2-3 weeks I have been following Pier 1 Import's rapid decline in sales and stock share value. Being that Pier 1 moved their headquarters to our hometown of Fort Worth a few years back, I am especially interested to see what happens with this company. As one anaylst from stated, "Pier 1 hit on a successful merchandising idea - with wicker furniture - but forgot to adapt its offerings to changing trends."

So as I'm reading various financial analyst's opinions on the failing wickerness of Pier 1, I decided to see if I would recognize any of the names of the big dudes who run this failing corporation...well much to my surprise, my former college chancellor was listed; none other than Dr. Ferrari from my first 2 years at TCU. Apparently Michael R. Ferrari, age 66, has been a director of Pier 1 since February 1999 and is a member of the audit committee, and
he is also the president of Ferrari and Associates LLC, a higher education consulting firm he established in May 2003 (the month he retired from TCU). Hum, wonder if he didn't have anything to do with bringing Pier 1 to Fort Worth (since he was working in FW as a university chancellor...)

Concluding Thoughts...
#1 Pier 1 said it had hired JP Morgan to help evaluate strategic alternatives and advise the company on a potential transaction to sell its credit card business, review its store portfolio and possibly sell other assets. A possible sale of the company has been the subject of market speculation for weeks.

#2 If I were an investigative journalist I would look more in to Ferrari's connection and interdealins with Pier 1.

click here for fun reading on the topic


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1 comment:

RC said...

i didn't know that there was a lake in front of the pier 1 building...

or actually it looks like undrained water...

that picture of the pier 1 building is has to be.