Pier 1 to close 16 stores

Fort Worth, Texas Pier 1 Imports reported that it will close 16 stores, a decision that comes on the heels of last month’s plan to hire a company to help the chain negotiate rent reductions with landlords.

The chain is not disclosing the specific locations that will close because it is still involved in negotiations. Pier 1 said it has reduced rents by about $5 million for fiscal 2010 and expects to close no more than 80 stores for fiscal 2010.

The store closings will be in addition to 16 other stores the chain closed during the fourth quarter. The chain ended its fiscal year with 1,092 locations.

The new store closings follow Pier 1’s announcement on Friday that a foreign subsidiary purchased $79 million of the chain’s debt at a price of $27 million.