ST. CHARLES – Seventy-seven people will be laid off in April when Pier 1 Imports Inc. permanently shuts the doors of its distribution center in St. Charles, city officials said Wednesday.
On Tuesday, the home furnishing chain announced its plans to close the 514,000-square-foot Kirk Road facility, cut staff and try to lower store rents in an effort to deal with the slumping economy and housing market.
Pier 1 Imports spokespeople would not provide the exact number of layoffs, referring questions to a press release posted on its Web site.
Employees at the distribution center referred questions to company spokespeople.
According to the release, the company plans "to reduce approximately 10 percent of the company's full-time equivalent positions in its distribution center, home office and field administration areas."
Beth Mund, St. Charles' community and public affairs coordinator, said the city received Worker Adjustment and Retraining Notification on Tuesday from Pier 1 Imports via Federal Express.
The letter, Mund said, was short and stated that the distribution center at 609 S. Kirk Road will close, and terminations will occur in April. She said a list of job titles were given, along with the number of layoffs at 77.
Pier 1 Imports also noted its plan to complete negotiations over store rents with its landlords by the end of May.
If rents are not reduced, the company said, it might have to file early termination agreements to close up to 125 store locations.
There are more than 40 stores in Illinois, including locations in Batavia, South Elgin and Aurora, according to the company's Web site.
The company expects to pay out about $5 million in severance, outplacement and other costs as a result of its plans.
