Pier 1 Imports (PIR) announced that it will file for Chapter 11 bankruptcy, pursuing a sale of the company.
The company has been under increased financial pressure, after announcing that it would close down 450 of it’s retail stores.
Pier 1 Imports (PIR) said it would implement a ”PSA” (Plan Support Agreement) in order to commence the bankruptcy process.
Before filing for Chapter 11, the company experienced multiple quarters of declining sales, losses and rising competition. Pier 1 also had plans to layoff workers at its corporate headquarters in Fort Worth, Texas before announcing that they would file for bankruptcy.
The company said that much of its struggle came from their inability to compete with retail giants like Amazon (AMZN) and Walmart (WMT). It had become very difficult for Pier 1 to bring consumers into their retail stores, and compete online. The shift to online retailing has also had a significant impact on Bed Bath and Beyond (BBBY), which lead the company towards declining sales, rising debt, and corporate restructuring.
Pier 1 (PIR) said it will continue to keep its remaining stores and online platform running, during the bankruptcy process.
CEO Rob Riesbeck, said in a statement: “We are moving ahead in this process with the support of our lenders. We are pleased with the initial interest as we engage in discussions with potential buyers”
Any of the sales going forward would require the approval of the U.S. Bankruptcy Court for the Eastern District of Virginia. They would also require approval for bankruptcy in Canada, as they move to shut down all brick and mortar stores.
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