Pier 1 wants to close all its stores for good
The final nail is being driven in Pier 1's wicker casket: It's on the verge of completely shutting down three months after it filed for bankruptcy.
The 58-year-old company said it analyzed alternative ways to remain in business, but liquidation was the best option.
"Ultimately, due to the combination of a challenging retail environment and the new reality and uncertainty of a post-Covid world, the company and its advisers determined that an orderly wind-down is the best way to maximize the value of Pier 1's assets," the company said in a press release.
said it plans to sell its remaining inventory, website and intellectual property. Orders placed on its website will continue to be fulfilled. said it plans to sell its remaining inventory, website and intellectual property. Orders placed on its website will continue to be fulfilled.
Its lenders have agreed to let Pier 1 overdraw its lending facility by $40 million to help it fund the liquidation process. Once a mall staple, Pier 1 sales have slumped in recent years because of growing online competition and shifting consumer habits. , and other online competition. Big-box chains such as and have also strengthened their home goods offerings. The home goods sector has been hit particularly hard by the rise ofand other online competition. Big-box chains such asandhave also strengthened their home goods offerings. Pier 1 has cut its store count in half since last year. It announced in February that it was closing around 450 stores, including all its locations in Canada. The company currently has more than 500 stores — down from 1,000 last year. Neiman Marcus, It's not alone in filing for bankruptcy: JCPenney J Crew have all filed in recent weeks, blaming the virus and shifting consumer behavior.