
Pier I Imports has filed for Chapter 11 bankruptcy and said it already has the approval of its lenders to pursue a sale of the company. The home furnishings retailer is in the process of closing up to 450 stores, including all of its stores in Canada. Pier 1 has received about $256 million in debtor-in-possession financing from Bank of America, Wells Fargo and Pathlight Capital LP. Pier 1 CEO and Chief Financial Officer Robert Riesbeck said in a statement that filing for bankruptcy protection will give the company more “time and financial flexibility” to get it through to a sale.
Total Retail's Take: After years of trying to turn the business around, Pier 1 executives have succumbed to the fact that that isn't going to happen, and are seeking bankruptcy protection to give them time to find a buyer. How did Pier 1 end up in this position? A confluence of factors, increased online (e.g., Wayfair, Amazon) and offline competition (Walmart, Target, HomeGoods), a failure to grow its e-commerce business quickly enough to regain lost market share, a revolving door at the leadership level, and the burden of store leases, have led to this point. The next developments to keep your eyes on is whether Pier 1 has interested buyers, and if so, will the winning bidder keep Pier 1 stores open (albeit at a reduced footprint).

Joe Keenan is the executive editor of Total Retail. Joe has more than 10 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.