Pier 1 said it may spin off two subsidiaries.

Under the plan that Fort Worth-based Pier 1 is considering, company stockholders would receive all the shares of common stock of Sunbelt Nursery and CMEI Inc. Pier 1 said it hopes to make the distribution, which would in effect divide Pier 1 into three publicly held firms, as a tax-free dividend. Sunbelt Nursery sells garden products through 100 outlets in the South. CMEI buys, develops and operates real estate properties in Sun Belt states.