Pier 1 said it will leave the business and permanently close its 540 stores. The Texas-based company said Tuesday it could not find a buyer for its business afterwards bankruptcy protection application earlier this year.
Pier 1 will go on sale as soon as it can reopen stores that have been temporarily closed due to coronavirus pandemic. The company has joined other major retailers since the disease broke out in the U.S. in March. Clothing manufacturer J. Crew as well as department store chains JC Penney i Neiman Marcus all have filed for bankruptcy this month.
Pier 1 dates back to a single store in 1962 that sold bag chairs and love beads to hippies in San Mateo, California. It expanded to offer almost anything for the home, from armchairs to curtains, and later adopted the “From Hippie to Hip” logo. At its peak, Pier 1 had more than 1,200 stores.
But in recent years, its business has slowed as it struggled to compete with online retailers Wayfair and Amazon, which sell sofas and coffee tables at a lower price and deliver them quickly. Pier 1’s revenue fell from nearly $ 1.9 billion in 2016 to $ 1.4 billion last year, and the company lost $ 310 million in 2019.
Nordstrom and Neiman Marcus feel the economic weight of the coronavirus pandemic
00:33
Pier 1 CEO Robert Riesbeck said in February that the company’s bankruptcy statement was intended to give him more time and financial flexibility while looking for a buyer.
“This decision comes after months of work to identify a buyer who will continue to operate our business in the future,” he said in a statement on Tuesday. “Unfortunately, the challenging retail environment has been significantly exacerbated by the profound impact of COVID-19, which has hampered our ability to secure this buyer and forcing us to disconnect.”
- In:
- Economy
- Bankruptcy
- Chapter 11 Bankruptcy
Add Comment