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Pier 1 Files for Bankruptcy Amid Closure of 450 Stores
Fort Worth, TX-based Pier 1 Imports, Inc., said Monday the company and its subsidiaries commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Eastern District of Virginia. The home goods retailer also entered into a Plan Support Agreement (PSA) with a majority of its term loan lenders, and is pursuing a sale of the company with a March 23 deadline for buyers to submit bids.
The company indicated the bankruptcy was filed to facilitate an orderly sale process and implement the PSA. Pier 1 also intends to use this process to complete the previously announced closure of up to 450 store locations, which includes the closure of all its stores in Canada. To date, the company has closed or initiated going-out-of-business sales at more than 400 locations. The retailer is also in the process of closing two distribution centers to reflect its revised store footprint.
Pier 1’s CEO and CFO Robert Riesbeck said, “In recent months, we have taken significant steps forward in our business transformation and cost-reduction initiatives. 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. 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. We are moving ahead in this process with the support of our lenders and are pleased with the initial interest as we engage in discussions with potential buyers.”
Pier 1 has received a commitment of roughly $256 million in debtor-in-possession financing from Bank of America N.A., Wells Fargo National Association, and Pathlight Capital LP. Following court approval, the company expects this financing, together with cash flows from operations, to provide ample liquidity to support continued operations and the sale process through the Chapter 11 process.
Pier 1’s stores and online platform are open and operating, and the company expects to operate its business in the normal course during the process.
*Pictured Pier 1 Imports Building, 100 Pier 1 Place, Fort Worth
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