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 ...