Pier 1 announced Feb. 17 that it has begun Chapter 11 proceedings in the U.S. Bankruptcy Court of the Eastern District of Virginia.
The company said it intends to use the process to complete the previously announced closure of up to 450 of its store locations. Pier 1 has stores in Clovis and Fresno, neither of which were on the company website’s list of closing stores.
The 450 closing locations include all of Pier 1’s Canada locations. The company has already closed or begun going-out-of business sales at 400 of its locations, according to the announcement. It will also shutter two of its distribution centers.
The company received a commitment of about $256 million in debtor-in-possession financing from Bank of America N.A., Wells Fargo National Association, and Pathlight Capital LP. Once approved by the court, the company expects the financing, along with cash flow from its operations, will provide enough liquidity to keep its stores open and operating through the Chapter 11 process.
The company’s online platform will continue to operate as well. Pier 1 expects to conduct business as usual through the filing process, according to the announcement.
Pier 1 CEO and CFO Robert Riesbeck said in a statement, “In recent months, we have taken significant steps forward in our business transformation and cost-reduction initiatives. We have worked to establish an appropriately sized and profitable store footprint, operating structure and merchandise assortment that will enable Pier 1 to better serve our customers across store and online channels.
“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. 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.”