Pier 1 Imports said Monday it filed for Chapter 11 bankruptcy protection and is pursuing a sale of the company, several weeks after announcing it was closing up to 450 stores, nearly half of its locations.
Pier 1 said it would use the bankruptcy protection to complete the store closures, which it said would include all of its Canadian locations. Pier 1, based in Fort Worth, said it received a commitment of about $256 million in debtor-in-possession financing from Bank of America, Wells Fargo National Association, and Pathlight Capital LP. Pier 1 said it expected the financing, with cash flow from operations, to support continued operations and the sale of the company through the bankruptcy process.
“Pier 1’s stores and online platform are open and operating, and the company remains focused on providing customers with unique, on-trend merchandise and an exceptional shopping experience,” Pier 1 said. “The Company expects to operate its business in the normal course during this process.”
“In recent months, we have taken significant steps forward in our business transformation and cost-reduction initiatives,” Pier 1’s CEO, Robert Riesbeck, said in a statement. “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 filed the bankruptcy petition in the U.S. Bankruptcy Court’s Eastern District of Virginia. The company filed normal first-day bankruptcy motions that, approved by the court, will grant the company authority to pay wages, benefits, vendors, and suppliers in ordinary course.
Pier 1 said it expects the deadline to submit qualified binding bids for purchase of the company “will be on or around March 23, 2020, subject to procedures to be approved by the court.” It said in its filings it was commencing negotiations with landlords about store leases, and could end up having to close more stores depending on the outcome of those talks.
