Published: Mon, February 17, 2020
Markets | By Otis Pena

Pier 1 Imports Files for Chapter 11 Bankruptcy, Now For Sale

Pier 1 Imports Files for Chapter 11 Bankruptcy, Now For Sale

Home decor retailer Pier 1 Imports announced in a statement Monday it has voluntarily filed for Chapter 11 bankruptcy and is seeking to sell the business.

The Fort Worth, Texas-based retailer has been teetering on the brink of collapse for years as a slew of competitors from Target, Walmart, Wayfair and Bed Bath & Beyond siphoned customers away with lower prices and similar offerings.

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

In the meantime, Pier 1 said lenders have committed approximately United States $256 million in debtor-in-possession financing so it can continue its operations during the Chapter 11 proceedings.

The company last month announced it would close 450 stores, including all its Canadian locations. It will close all its stores across the country.

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Pier 1 listed assets and liabilities of more than $500 million in its filing in USA bankruptcy court in Richmond, Virginia. "We appreciate the ongoing dedication of our associates, whose efforts in providing our loyal customers with the experience they expect from our brand are critical to our success and the future of Pier 1".

A hearing is scheduled for Tuesday at the U.S. Bankruptcy Court for the Eastern District of Virginia.

Pier 1 will also initiate bankruptcy proceedings in Canada. An "action plan" put in place in April 2019 by interim Chief Executive Officer Cheryl Bachelder failed to stabilize sales, and the company replaced her in November with Robert Riesbeck, a turnaround manager.

Charles Tandy, the entrepreneur behind Radio Shack, started Pier 1 in California as a single store, according to his book.

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