Pier 1 closing all of its stores in Canada
Pier 1 Imports, Inc. announced today that it has entered into bankruptcy protection and is pursuing a sale.
The retailer commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court and will 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, Pier 1 has closed or initiated going-out-business sales at over 400 locations. The retailer is also in the process of closing two distribution centers to reflect its revised store footprint.
“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," Robert Riesbeck, Pier 1’s Chief Executive Officer and Chief Financial Officer, said in a press release.
"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 approximately $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 remains focused on providing customers with unique, on-trend merchandise and an exceptional shopping experience. The Company expects to operate its business in the normal course during this process.
“We will continue to serve our customers regardless of how and where they shop with the style, value and selection of merchandise they want as we move through this process, and we are committed to working seamlessly with our vendors and partners," 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.
In connection with its plans to close all its stores in Canada, Pier 1 is also commencing proceedings in Canada.
To read the full announcement, go here.
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