Pier 1 Just Announced It Is Permanently Closing All Stores and Going Out of Business
The closures will happen "as soon as reasonably possible."
It's a sad day for Pier 1 shoppers and employees. Today, the company announced it is closing all of its stores as soon as possible.
The corporation posted a news release on its website explaining that it had filed a motion with the United States bankruptcy court to seek approval to "begin an orderly wind-down of the company's retail operations." Store closings and liquidation sales will happen once locations can reopen in the first place. Currently, brick and mortar locations are closed due to the COVID-19 (coronavirus disease 2019) pandemic, but the online site is still up and running.
"We are grateful to our dedicated and hardworking associates, millions of customers and committed vendors who have collectively supported Pier 1 for decades," Robert Riesbeck, Pier 1’s chief executive officer and chief financial officer, says in the release.
"We deeply value our associates, customers, business partners, and the communities in which we operate, and this is not the outcome we expected or hoped to achieve. This decision follows months of working to identify a buyer who would continue to operate our business going forward. Unfortunately, the challenging retail environment has been significantly compounded by the profound impact of COVID-19, hindering our ability to secure such a buyer and requiring us to wind down."
On January 6, Pier 1 announced it would close up to 450 of its existing 942 stores in a news release. Although they did not immediately disclose which exact locations would shutter, Business Insider reported the company erased more than 260 stores (across 43 states) from its website. Business Insider contacted 20 random stores on the list, and employees from each location confirmed their respective stores were, in fact, closing.
The decision came after a dismal third-quarter financial report, which notes a decrease in net sales and inventory, among other losses. Along with the closings and lay-offs, Bloomberg previously reported that Pier 1 had also filed for Chapter 11 bankruptcy. According to the U.S. Courts' website, Chapter 11 bankruptcy is often called "reorganization" bankruptcy and is usually filed by businesses. The filing allows companies to stay open while restructuring the corporation to hopefully keep operating in the future. Unfortunately, this wasn't the case for Pier 1.