Pier 1 Imports Plans to Shut Down Permanently After Not Finding a Buyer
Pier 1 Imports announced this week that it's seeking bankruptcy court approval to shut down its business permanently after it wasn't able to find a buyer, CNBC reported. The home goods retailer said in a press release that it has been trying to find a buyer for months which would continue operating the business, but because of the current retail landscape as a result of the COVID-19 crisis, it hasn't been successful and has decided to wind-down the company's retail operations.
Pier 1 plans to sell its inventory and remaining assets, including its intellectual property and online operations. The retailer is currently still serving customers by processing and filling order through its e-commerce site. Once store locations can reopen in compliance with COVID-19 guidelines, the retailer plans to initiate store closing efforts and liquidation sales.
Total Retail's Take: Pier 1 filed for bankruptcy in February before the coronavirus pandemic turned the retail industry upside down, forcing thousands of retail stores to close in the process. In February, Pier 1 had planned to shut half of its stores permanently, but was looking for a buyer to save the business from going under entirely. The pandemic has thrown a wrench into that plan and unfortunately Pier 1 isn't the only one business looking at bankruptcy and/or liquidation. Stage Stores plans to liquidate all of its stores if it can't find a buyer, and J.C. Penney and Neiman Marcus have also filed for Chapter 11. As the industry continues to navigate these uncertain times, other retailers may need to seek bankruptcy protection as well, without liquidation an option.
Ashley Chiaradio is the Senior Content Strategist at Total Retail. Ashley has been creating content for more than 7 years, and provides a unique insight in covering the retail industry having worked directly for retailers in the past. She’s passionate about profiling women leadership in the space.