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Pier 1 Has Filed for Bankruptcy and Is Pursuing Sale of the Company

Kelly Corbett
Photo credit: Scott Olson - Getty Images

From House Beautiful

The retail apocalypse has claimed yet another victim. Last month, one of our favorite home goods retailers, Pier 1 Imports, announced that it will shutter 450 of its 942 stores, including all stores in Canada. On Monday, the company addressed the public once again, issuing a statement to say that it has filed for bankruptcy and is pursuing a sale of the company.

While you might be quick to think that it's the end of the road for Pier 1, there is a possibility that the company will be purchased and the brand will continue to exist. The retailer has filed for Chapter 11 bankruptcy, a form of bankruptcy that allows the company time to restructure its debts, according to Investopedia. Robert Riesbeck, Pier 1’s Chief Executive Officer said on Monday that these 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." He mentions that the company is moving ahead in the process, backed by its lenders, and is pleased with the initial interest from potential buyers.”

Pier 1 Imports has received a commitment of $256 million in debtor-in-possession financing from Bank of America N.A., Wells Fargo National Association, and Pathlight Capital LP. Following court approval, the company believes that this money, along with cash flows from operations, will "provide ample liquidity to support continued operations and the sale process through the Chapter 11 process."

While the future of the chain is ambiguous, we do know that all 450 stores slated to close will still close. In fact, at least 400 stores have either closed already or initiated a going-out-of-business sale. The remaining stores are still expected to operate under normal business hours during this process, according to the company's statement. Therefore, your local Pier 1 Store won't be disappearing overnight and will remain open as the company tries to restructure. Customers can also head to pier1.com to shop (jackpot—the President's Day sale has been extended!).

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