Pier 1 Imports has announced it has filed for Chapter 11.
The company has entered into a Plan Support Agreement with a majority of its term loan lenders and is pursuing a sale of the company. To facilitate a sale process and implement the PSA, the company and its subsidiaries filed for Chapter 11.
“In recent months, we have taken significant steps forward in our business transformation and cost-reduction initiatives,” says Robert Riesbeck, chief executive officer and chief financial officer, Pier 1. “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. 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. 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.”
The company also intends to use this process to complete the previously announced closure of up to 450 store locations, which includes the closure of all of its stores in Canada. To date, Pier 1 has closed or initiated going-out-business sales at more than 400 locations. The company is also in the process of closing two distribution centers.
Pier 1 intends to conduct a court-supervised sale process and complete the sale through a Chapter 11 plan.