It’s a sad day for Pier 1 Import fans after the company has announced they want to close its stores for good. Yes, say goodbye to the over-expensive lawn chairs, and delightful flashlights and table sets, people.
According to the company, just three months after filing for bankruptcy, it is on the verge of completely shutting down. The store is asking the bankruptcy court to seize its retail operation, “as soon as reasonably possible.” It blames temporary store closure caused by the coronavirus pandemic and failing to find a buyer for the decision they have made.
The company, which is 58-years-old, stated it analyzed alternative ways to remain in business, but decided that liquidation was the best option. Through a press release, the company stated “ “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 did note they are planning to sell its remaining inventory, website, and intellectual property. Luckily for us fans, orders placed on its website will continue to be fulfilled and run regularly. Its lenders have agreed to let the company overdraw its lending facility by a whopping $40 million to help it fund the liquidation process.
The popular store sales have slumped in recent years because of growing online competition, and different consumer habits. According to reports, the Home Goods retail section has been hit hard by the rise of Wayfair, Amazon, and other online competitions. Several bix-box changes and nationwide favorites, such as Wal-Mart and Target have also straightened their home offerings.
Last year, Pier 1 Imports Inc. cut its stores in half. It announced back in February that it was closing around 450 stores, including all locations in Canada. The company currently has more than 500 stores, which went down from 1,000 last year.
Unfortunately, this isn’t the only store filing for bankruptcy. Neiman Marcus, J.Crew, and JC Penney have all filed in recent weeks, blaming COVID-19 and shifting behaviors as well.
Be sure to check out pier1.com before everything goes!