With its store closing sales set to start after retail locations can safely open again, Pier 1 Imports, Inc. said it has received the green light from the U.S. Bankruptcy Court for the Eastern District of Virginia for its “planned wind-down of operations.” The home décor and accessories retailer intends to finish its liquidation sales by the conclusion of October, according to a press release.
Pier 1 plans to sell its leftover assets, including its online shopping business and intellectual property, following the bidding procedures set forth in February of this year. The court has established July 1 as the asset bid deadline, July 8 as the auction date and July 15 as the sale hearing date.
Pier 1 noted that it is still serving clients via its website, and is processing and filling orders. It noted that Kirkland & Ellis LLP is serving as its legal advisor in the U.S. and Hoskin & Harcourt LLP in Canada. Guggenheim Securities, LLC is functioning as the retailer's investment banker, while AlixPartners LLP is serving as its restructuring adviser.
Robert Riesbeck, Pier 1’s CEO and CFO, said in the press release, “This is not the outcome we hoped for when we began this process, and we are deeply saddened to move forward with winding down Pier 1. We are incredibly grateful to everyone who has supported Pier 1 since the Company’s inception nearly 60 years ago, including our committed associates, passionate customers and talented vendors.”
In January, Pier 1 said it planned to shutter almost half of its 942 locations, fueling bankruptcy rumors as the firm released its quarterly earnings. At the time, the company specified that as many as 450 Pier 1 retail locations would be closed. It also planned to close a share of its distribution centers and decrease corporate expenses. The decision followed falling sales and more losses over time.