Pier 1 in talks with European firm
Troubled home furnishings chain disclosed in filing that it considering a negotiated transaction with a European retail investment firm.
NEW YORK (CNNMoney.com) -- Shares of troubled home furnishing retailer Pier 1 jumped close to 10 percent Thursday after the company disclosed it was in talks with a European investment company with retail holdings.
In a regulatory filing Pier 1 said it has entered into a possible "negotiated business transaction" with European firm Lagerinn ehf, owned by Danish investor Jakup a Dul Jacobsen.
However last month, Pier 1 Imports agreed to sell its private-label credit card operations to JP Morgan Chase & Co. for about $155 million and said it is exploring other strategic alternatives for its business.
In its filing with the Securities and Exchange Commission (SEC). Pier 1 said it had "entered into a confidentiality agreement" with Lagerinn ehf and that Lagerinn has contacted and held discussions with members of Pier 1's management.
Pier 1 has struggled to grow its sales for close to two years amid increasing competition from value-priced discounters like Wal-Mart (Charts) and Target (Charts) who have recently their expanded their offerings in the home furnishings space.
Pier 1 did not immediately return calls for comment.