Pier 1 Imports has entered into an agreement with Retail Ecommerce Ventures to sell all of its owned intellectual property, including data and other ecommerce-related assets.
According to a document filed with the Securities and Exchange Commission, the company sold its IP and related assets for $20,075,000. The company has stated that it will consider other bids, including other offers they have received on or around July 8.
Together with its financial and legal advisors, Pier 1 says that it engaged in an analysis of all available alternatives prior to deciding on this course of action. Ultimately, due to the combination of the retail environment and the uncertainty of a post-COVID world, it was determined that an orderly wind-down is the best way to maximize the value of Pier 1’s assets.
“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, chief executive officer and chief financial officer, Pier 1 Imports. “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.”
Previously, the company announced that it filed a motion seeking bankruptcy court approval in order to begin to wind-down the company’s retail operations.