Fort Worth, Texas — Pier 1 Imports, Inc. has filed a motion seeking Bankruptcy Court approval to begin an orderly wind-down of the company’s retail operations as soon as reasonably possible after store locations are able to reopen following the government-mandated closures during the COVID-19 pandemic. As part of the wind-down, the company intends to sell its inventory and remaining assets, including its intellectual property and e-commerce business, through the court-supervised process.
“We are grateful to our dedicated and hardworking associates, millions of customers and committed vendors who have collectively supported Pier 1 for decades,” says Robert Riesbeck, Pier 1’s chief executive officer and chief financial officer. “We deeply value our associates, customers, business partners and the communities in which we operate, and this is not the outcome we expected or hoped to achieve. This decision follows months of working to identify a buyer who would continue to operate our business going forward. Unfortunately, the challenging retail environment has been significantly compounded by the profound impact of COVID-19, hindering our ability to secure such a buyer and requiring us to wind down.”
Pier 1 intends to initiate store closing efforts and liquidation sales once store locations can reopen. The company is currently continuing to serve customers through www.Pier1.com, and orders are being processed and filled.
The company’s debtor-in-possession (DIP) lenders have agreed to allow Pier 1 to overdraw the DIP facility by approximately $40 million to support the company’s continued operations through the wind-down period. The company plans to file a Chapter 11 plan and disclosure statement to bring closure to all parties in the Chapter 11 cases.
Kirkland & Ellis LLP and Osler, Hoskin & Harcourt LLP are serving as legal advisors to Pier 1 in the U.S. and Canada, respectively. AlixPartners LLP is serving as restructuring advisor and Guggenheim Securities, LLC is serving as investment banker.
Founded with a single store in 1962, Pier 1 Imports is an omnichannel retailer of unique home décor and accessories. The company’s products are available through approximately 541 Pier 1 stores in the U.S. and online.
SOURCE: Pier 1 Imports