Pier 1 files for bankruptcy, seeks sale

Earlier this year, the retailer said it would close hundreds of stores

TRD NATIONAL /
Feb.February 17, 2020 12:52 PM

(Credit: Google Maps)

Pier 1 Imports is officially bankrupt, more than a month after the retailer began closing hundreds of stores.

The Texas-based home goods chain, which filed for Chapter 11 bankruptcy Monday in the Eastern District of Virginia, said it intends to use the move to sell the company.

The announcement comes after Pier 1 in January began closing 450 stores, including all of its locations in Canada, after the firm’s fiscal third-quarter sales sank 11.4 percent from the year before.

“We have worked to establish an appropriately sized and profitable store footprint, operating structure and merchandise assortment that will enable Pier 1 to better serve our customers across store and online channels,” Robert Riesbeck, who became CEO in September, said in prepared remarks. “Today’s actions are intended to provide Pier 1 with additional time and financial flexibility as we now work to unlock additional value for our stakeholders through a sale of the company.”

For some industry watchers, the move does not come as a surprise. S&P Global Ratings last year downgraded the credit rating of the retailer, which had been shuttering stores piecemeal, to CCC- from CCC+.

Pier 1 said it also has a commitment for about $256 million in debtor-in-possession financing from Bank of America, Wells Fargo National Association and Pathlight Capital.

The company’s expected deadline for bids, which has to be approved by a court, is March 23. It said it plans to keep its remaining stores open and website up.

In January, the retailer still had 950 locations. On Monday Pier 1 said it has closed or started to close 400 stores and was looking to sell two distribution centers.

Write to Mary Diduch at [email protected]


Related Articles

arrow_forward_ios
Bed Bath & Beyond is planning to reopen 600 U.S. stores as states begin to wind down shelter-in-place orders. (Getty)

Bed Bath & Beyond to reopen 600 US stores

Bed Bath & Beyond to reopen 600 US stores
Mall of America in Minnesota (Farragutful via Wikipedia)

Mall of America falls behind on $1.4B mortgage

Mall of America falls behind on $1.4B mortgage
Hudson’s Bay CEO Richard Baker (Credit: Getty; iStock)

“Corporate shell game”: Special servicer says Hudson’s Bay undermined $850M loan

“Corporate shell game”: Special servicer says Hudson’s Bay undermined $850M loan
Daniel Kretinsky and a Foot Locker store (Credit: Getty)

Czech billionaire who bought Macy’s stake just acquired 6% of Foot Locker

Czech billionaire who bought Macy’s stake just acquired 6% of Foot Locker
Lacoste USA’s chief financial officer Karine Sansot-Vincent and a Lacoste store in Soho, New York (Jimi Celeste/Patrick McMullan via Getty Images and Michael Brochstein/SOPA Images/LightRocket via Getty Images)

Game point: Lacoste USA is restructuring, renegotiating retail leases

Game point: Lacoste USA is restructuring, renegotiating retail leases
Pier 1 CEO Robert Riesbeck (Credit: Joe Raedle/Getty Images)

Cast away: Pier 1 to liquidate assets, shutter business

Cast away: Pier 1 to liquidate assets, shutter business
(Credit: Rob Kim/Getty Images, iStock)

April’s 16.4% drop in retail sales is worst on record

April’s 16.4% drop in retail sales is worst on record
Gov. Andrew Cuomo and block of closed businesses in the East Village neighborhood of Manhattan (Credit: Cuomo by John Lamparski/NurPhoto via Getty Images, Rob Kim/Getty Images)

State officials lay out rules for retailers reopening

State officials lay out rules for retailers reopening
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...