Pier 1 has announced that it is closing all of its stores in Canada as it files for bankruptcy protection under Chapter 11 proceedings in the U.S. Pier 1 Imports is an omni-channel retailer of unique home décor and accessories and is famous for their one of a kind home decor items like pillows, figurines and furniture.
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In a statement on their website, it says that “Pier 1 is pursuing a sale of the Company and has commenced Chapter 11 proceedings in the U.S. to facilitate a sale process. In connection with this, the Company has made the decision to move forward in the U.S. and close all stores in Canada. We thank our customers in Canada for your continued loyalty and for shopping with us over the years.”In a press release that details of filing of Voluntary Chapter 11 petitions to facilitate sale process, Robert Riesbeck, Pier 1’s Chief Executive Officer and Chief Financial Officer said, “In recent months, we have taken significant steps forward in our business transformation and cost-reduction initiatives. We have worked to establish an appropriately sized and profitable store footprint, operating structure and merchandise assortment that will enable Pier 1 to better serve our customers across store and online channels. 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. We are moving ahead in this process with the support of our lenders and are pleased with the initial interest as we engage in discussions with potential buyers.
Pier 1 intends to conduct a court-supervised sale process and complete the sale through a Chapter 11 plan. Pier 1 expects that the deadline to submit qualified binding bids will be on or around March 23, 2020, subject to procedures to be approved by the court. In connection with its plans to close all its stores in Canada, Pier 1 is also commencing proceedings in Canada.
Though all physical stores in Canada will be closed, online stores and about 500 US stores will continue to operate. To date, the Company has closed or initiated going-out-business sales at over 400 locations.