Weeks after an announcement to shutter hundreds of stores across the United States, Pier 1 Imports announced it will file for Chapter 11 bankruptcy and has the approval for lenders to purchase the Texas-based retailer.
“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,” Chief Executive Officer Robert Riesbeck said in a statement.
The filing, he said, is designed to provide Pier 1 with more flexibility—and time—as it works to go ahead with a sale, Riesbeck explained, adding that his firm will “work to unlock additional value for our stakeholders.”
Last month, the firm said it would close about 450 stores across the United States, and it will also shut down distribution centers. Layoffs were also announced at its headquarters in Fort Worth, Texas, reported The Associated Press.
At the time, the chain named Riesbeck as its CEO.
Pier 1 will also initiate bankruptcy proceedings in Canada. It will close all its stores across the country.
In its Monday statement, the chain said it “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.” The move will give it “ample liquidity” to support its operations and sale process.
Riesbeck added, “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. 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.”
Pier 1 expects the deadline to submit qualified bids to be around March 23, impacting chains like Payless, Walgreens, Family Dollar, and Fred’s.
It comes after about 9,300 stores closed across the United States in 2019, according to a report (pdf). Coresight Research, which released its year-end report on the closing stores, said that 5,844 stores closed in 2018. In 2019, 9,302 stores were reported to have been shut down or were going to be shut down, which is a 59 percent increase over 2018. Payless ShoeSource suffered the worst, closing 2,100 stores.
The report found that 4,392 new stores opened across the United States. Dollar General opened up nearly 1,000, Dollar Tree opened 348, Family Dollar opened 202, Aldi opened 159, and a number of other aforementioned brands that shuttered stores also opened new locations, according to the report.
From The Epoch Times
