A individual bankruptcy courtroom choose has approved Pier 1 Imports’ prepare to completely wind down its functions, sealing the demise of the house furnishing business following 58 many years in enterprise.
As part of the prepare, Pier I will commence an “orderly liquidation” of its remaining stores as shortly as fairly probable following the stores reopen with the easing of coronavirus lockdowns. It will also look for to market all remaining belongings such as its intellectual property and e-commerce enterprise.
“This is not the end result we hoped for when we began [the Chapter 11] course of action, and we are deeply saddened to transfer forward with winding down Pier 1,” CEO Robert Riesbeck reported in a news launch.
Pier 1 submitted Chapter 11 in February to facilitate a sale of the business. Its earnings had declined for nine consecutive quarters and it was struggling to services a very long-time period personal debt load of far more than $250 million amid shifting buyer preferences and level of competition from big-box rivals and on line suppliers.
“The international pandemic upended these designs, completely derailing all attempts to safe a heading-concern bidder and upending the fiscal versions underpinning the heading-concern personal debt-for-fairness exchange” contemplated by Pier 1’s arrangement with creditors, the business reported on May 19 in its motion for a courtroom order authorizing the wind-down.
“The consequences of the COVID-19 pandemic have tested insurmountable,” it reported.
At the time of the Chapter 11 submitting, Pier 1 was arranging to shut about 50 percent of its spots, or about 450 stores, permanently. It expects to conclude liquidation proceedings and shut down for excellent by the end of October.
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