Pier 1 Lenders Opt to Own Retailer and Cancel Bankruptcy Auction

An auction for the assets of bankrupt Pier 1 Imports Inc. is canceled and term loan holders have opted to take ownership of the reorganized retailer, court papers show.

• The parties remain in discussion about how to maximize the value of Pier 1’s assets “in light of the COVID-19 pandemic, increasing government shut-downs, and overall unstable market conditions, including the market affecting credit and exit financing options,” per court papers
• Auction cancellation and lender equity takeover was an option under bankruptcy deal if no bids received gave term loan holders a recovery of at least $104.7 million, earlier court papers show
• EARLIER: Pier 1 Faces Mass Closures While Lenders Weigh Rescue Bid
• The case is Pier 1 Imports Inc., 20-30805, U.S. Bankruptcy Court, Eastern District of Virginia (Richmond)

To contact the reporter on this story:
Jeremy Hill in New York at jhill273@bloomberg.net

To contact the editors responsible for this story:
Rick Green at rgreen18@bloomberg.net

Boris Korby

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