The company said in a
“This decision follows months of working to identify a buyer who would continue to operate our business going forward,”
Pier 1 sought court protection in February with plans to shut about half of its stores and said it was in talks with multiple potential buyers. The Fort Worth, Texas-based company had posted multiple quarters of declining sales and losses amid a raft of new competitors like Wayfair Inc.
On March 30, it canceled a scheduled auction for its assets, saying lenders would take ownership of the company. However, the company said it was still in discussions with various parties about how to maximize the value of its assets.
Pier 1 is “left with no choice” but to wind down retail operations and look to sell all its remaining assets, attorneys for the company write in
Since store-closing sales can’t be held until state-mandated lockdowns are lifted, the retailer is seeking court permission to pay current employees severance and bonuses to discourage them from leaving before the chain can wind down. Pier 1 is also asking its bankruptcy judge to set an auction on July 8 for its its intellectual property and e-commerce business, other
The case is Pier 1 Imports Inc.,
(Adds additional detail on process in sixth and seventh paragraphs. Adds case cite)
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