Pier 1 Imports files for bankruptcy. Will the Fort Worth company find a buyer?
Fort Worth-based Pier 1 Imports Inc. has filed for bankruptcy, and company officials said in a statement they would seek a buyer for the company.
The company, which announced Monday that it had filed for chapter 11 bankruptcy protection in Virginia, said it would press forward with plans to close 450 stores, including all stores in Canada.
Pier 1 had previously announced it would close or initiate going out of business sales at 400 stores, and take steps to close two distribution centers, as part of a massive downsizing effort.
“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,” Robert Riesbeck, company chief executive and financial officer, said in a statement. “In recent months, we have taken significant steps forward in our business transformation and cost-reduction initiatives. 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.”
Pier 1 officials also said they would seek bids from prospective buyers through March 23, as part of the bankruptcy process.
The company expects that it will have sufficient cash flow to remain open during the bankruptcy process, including proceeds from in-store sales, online purchases and $256 million in debtor-in-possession financing from three lending institutions.
This story was originally published February 17, 2020 at 1:08 PM.
