Bankrupt Pier 1 Imports Says Stores to Permanently Shut Down
Pier 1 Imports Inc. reported that it is officially closing all retail stores permanently after almost 60 years of business, according to The Wall Street Journal.
The company still looks to sell its intellectual property and e-commerce business. The Texas-based retail company approached a bankruptcy court for permission to liquidate inventory and shut down operations as the country reopens.
Court papers show one of the company’s statements, “It is now clear that Pier 1’s future does not involve any brick-and-mortar retail locations.” The news follows several lenders’ decision to walk away from a potential comeback deal for Pier 1.
The latest updates are surprising, as three weeks ago Pier 1 stated that the company is looking forward to reopening a large number of stores by June 1. Now, the retailer founded in 1962 is being assisted by liquidation firm Gordon Brother Trail Partners LLC in an effort to start “going-out-of-business sales.” Pier 1 filed for chapter 11 bankruptcy in February.
The deadline for bids on Pier 1’s intellectual property is July 1. At the time of the bankruptcy filing, Pier 1 shut down around half of its 940 stores, and due to the pandemic’s economic consequences, the company hasn’t been able to raise any money to fund its chapter 11 expenses or pay lenders.
The company was even granted permission in bankruptcy court to temporarily forgo rent payments. The hearing to permit Pier 1’s wind-down is on May 29 at the U.S. Bankruptcy Court in Richmond, Va. The planned wind-down will give 50 percent of severance to eligible workers and bonuses to employees still working during the pandemic.