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Tuesday, October 03, 2006

Pier 1 (PIR) CEO Resignation Heightens Buyout Talk

From 13D Tracker

Shares of Pier 1 Imports Inc. (NYSE: PIR) were higher in Monday following news over the weekend that Chairman and Chief Executive Officer, Marvin J. Girouard, plans to retire. The announcement follows a recent disclosure that Lagerinn ehf entered into a confidentiality agreement with Pier 1 in connection with Lagerinn's consideration of a possible negotiated transaction.

The resignation news has heightened market chatter that Pier 1 will be sold, as Girouard was expected to stay on manage the turnaround.

Lagerinn ehf, run by Danish investor Jakup a Dul Jacobsen, franchises home furnishings chain JYSK (yi-sk). JYSK has 1000 JYSK stores worldwide, including 25 in Canada.

In March of 2006, Pier 1 sold its England-based subsidiary The Pier Retail Group Limited to a wholly owned subsidiary of Lagerinn for approximately $15 million.

Jacobsen also owns stakes in other US retailers, including a 10% stake in Cost Plus (Nasdaq: CPWM) and a 13.6% stake in Linens N' Things (NYSE: LIN).

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