Pier 1 Imports said Monday that it filed for bankruptcy protection as it looks for a new owner. The home furniture company announced that it seeks Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of Virginia.
In an attempt to make it easier to find a buyer, the company will shutter up to 450 stores, nearly half of its locations. It announced those closings in January and has shuttered or launched final sales at more than 400 locations. “We have worked to establish an appropriately sized and profitable store footprint, operating structure and merchandise assortment,” Robert Riesbeck, Pier 1’s CEO, said in a statement. “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 is expecting roughly $256 million from Bank of America, Wells Fargo National Association and Pathlight Capital that will help it maintain operations. Depending on guidelines set by the court, bids by potential buyers should be submitted by around March 23.
Its customers will still be able to shop with the company, both at the stores that remain open and online. “The company expects to operate its business in the normal course during this process,” Pier 1 said in its statement.
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