Pier 1 plans to sell in bankruptcy
Struggling home decor chain Pier 1 Imports intends to sell the business as it files for Chapter 11 bankruptcy and closes up to 450 stores – nearly half of its locations, according to reports Monday (February 17).
The Fort Worth, Texas-based retail franchise said it filed for Chapter 11 protection Monday in U.S. bankruptcy court in Richmond, Virginia. Pier 1 said there would be a court-supervised bankruptcy sale unless talks with potential buyers work out.
Qualified bids for the 51-year-old decorating and furnishing business will be submitted on or around March 23, pending court approval.
“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 the sale of the business,” the CEO said. Pier 1, Robert Riesbeck. mentioned. “We are moving forward with this process with the support of our lenders and are pleased with the initial interest as we begin discussions with potential buyers.”
Riesbeck replaced Cheryl Bachelder as CEO in November.
“The company expects to operate in the normal course of this process,” Pier 1 said in its statement.
Its customers will still be able to shop with the company, both in stores that remain open and online.
Prior to the filing, Pier 1 reached an agreement with most of the lenders, who had collectively committed to provide $256 million in debtor-in-possession financing. Bankruptcy funding from lenders including Bank of America NA, Wells Fargo National Association and Pathlight Capital LP will allow the company to operate while finalizing sales.
Court documents showed Pier 1 valued its assets at $426.6 million and listed a total debt of $258.3 million. Its main shareholders are Charles Schwab Investment Management and Dimensional Fund Advisors LLP.
Pier 1 has posted declining sales for nine consecutive quarters and excessive debt.
Pier 1 announcement in January that it planned to close almost half of its 942 sites.