It's official: Pier 1 Imports files bankruptcy
Pier 1 Imports and Pier1.com remain open for business following the filing of Chapter 11 bankruptcy designed to facilitate the sale of the company.
The Chapter 11 filing follows Pier 1’s previously announced plan to close 450 stores, roughly half of those in operation last year. The company in a statement said it had received commitments of approximately $256 Million in debtor-in-possession financing and entered into a Plan Support Agreement (PSA) with a majority of its term loan lenders and is pursuing a sale of the company.
The company intends to use the bankruptcy process to complete the 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-business sales at more than 400 locations. Two distribution centers are also closing.
"In recent months, we have taken significant steps forward in our business transformation and cost-reduction initiatives,” said Pier 1 CEO and CFO Robert Riesbeck. “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.”
He added that the bankruptcy filing is intended to provide Pier 1 with additional time and financial flexibility as it works to unlock additional value for 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,” Riesbeck said.
Pier 1 intends to conduct a court-supervised sale process and complete the sale through a Chapter 11 plan. Pier 1 expects that the deadline to submit qualified binding bids will be on or around March 23, 2020, subject to procedures to be approved by the court.