Pier I Imports has filed for bankruptcy after years of trying to fix itself.
Pier 1, the troubled home furnishings retailer, founded in 1962, bases today in Fort Worth, Texas, has been hurt by the growth of new online rivals, and has now filed for bankruptcy and released a statement saying that it reached a plan with lenders to provide it with $256 million as it tries to find a buyer for the company.
The company also reiterated a previously announced plan to cut about 40% of headquarters staff and close as many as 450 stores, or about half of the chain’s locations. That includes all of its stores in Canada.
After struggling for years and repeated –but failed– efforts to salvage, the home furnishings chain turned to bankruptcy and listed assets and liabilities of more than $500 million in its filing in U.S. bankruptcy court in Richmond, Virginia. The company posted a message on its website saying:
“Pier 1 is pursuing a sale of the Company and is undertaking Chapter 11 proceedings to facilitate an orderly sale process. The Company fully expects to operate its business in the normal course during this process, and Pier 1’s continuing stores and online platform are open and operating. We remain focused on providing customers with unique, on-trend merchandise and an exceptional shopping experience.”
Despite Pier 1’s sales and profits have slumped in recent years and its revenue fell from nearly $1.9 billion in 2016 to $1.4 billion last year, with the company losing $310 million in 2019, the company will continue operating during the bankruptcy process, according to TIME Magazine, and is asking the bankruptcy court to set March 23 as a deadline for bids to be accepted.
