Pier 1 Imports Files for Bankruptcy

Home decor retailer Pier 1 Imports Inc. announced this week that it has filed for bankruptcy protection. The company also revealed that it is pursuing a sale. The retailer said it expects to keep its stores and online platform open and running during the process.

“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,” Chief Executive Officer Robert Riesbeck stated.

“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,” Riesbeck also said.

The company said it would also begin bankruptcy proceedings in Canada in addition to closing all its stores in the country.

It was last month that the Texas-based retailer said it planned to close 450 stores. “Although decisions that impact our associates are never easy, reducing the number of our brick-and-mortar locations is a necessary business
decision,” Riesbeck said at the time.

Pier 1 has posted sales declines for nine consecutive quarters. For the third quarter, the company saw same-store sales decline 11.4%.

“Fiscal third quarter sales and margins remained under pressure,” remarked Riesbeck. “Looking ahead, we believe that we will deliver improved financial results over time as we realize the benefits of our business transformation and cost-reduction initiatives.”

Disclaimer: We have no position in Pier 1 Imports Inc. (NYSE: PIR) and have not been compensated for this article.