Pier 1 Imports has announced that it has filed a motion seeking bankruptcy court approval in order to begin to wind-down the company’s retail operations as soon as 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, 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.”
Together with its financial and legal advisors, Pier 1 said via statement 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 new reality and uncertainty of a post-COVID world, the company and its advisors determined that an orderly wind-down is the best way to maximize the value of Pier 1’s assets.
Pier 1 intends to initiate store closing efforts and liquidation sales once store locations can reopen, in compliance with COVID-19 guidelines from local government and health officials. The company is currently continuing to serve customers through Pier1.com, and orders are being processed and filled.