PIER 1 TO WALK OFF

Pandemic last straw for struggling home-goods chain

Pier 1 Imports is calling it quits.

The bankrupt home-goods retailer has asked a court for permission to liquidate its remaining 540 stores once they reopen after coronavirusdriven lockdowns, ending a 58-year legacy of selling glassware, wicker furniture and other home decor.

Pier 1 said it is in talks with several prospective buyers to sell its remaining assets, including its intellectual property and e-commerce business, during a court-supervised auction on July 15. The company has tapped Gordon Brothers to begin liquidating its locations this weekend across the US, according to court documents.

“It is now clear that Pier 1’s future does not involve any brick-and-mortar retail locations,” Pier 1 said in court filings.

The Fort Worth, Texasbased chain — founded in 1962 in San Mateo, Calif., under the moniker Cost Plus Imports — filed for bankruptcy protection in February, pushed to the brink by increasing competition from online home furnishings giant Wayfair, Target and Walmart.

In March, Pier 1 canceled a court-administered auction to sell the company, citing a lack of interest. Lenders explored buying the company but ultimately backed away, forcing Pier 1 to shut down for good, according to court papers.

“This is not the outcome we expected or hoped to achieve,” Robert Riesbeck, Pier 1’s chief executive and chief financial officer, said in a statement.

At the beginning of this year, Pier 1 had 936 stores and had hoped that closing half of them in bankruptcy would be a linchpin to its reorganization. But the coronavirus quashed the company’s ability to restructure, according to court documents.

“This decision follows months of working to identify a buyer who would continue to operate our business going forward,” Riesbeck said. “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.”

A handful of other big retailers have lately gone bankrupt amid the coronavirus crisis, including J. Crew, Neiman Marcus and JCPenney. Those retailers have all pledged to downsize their chains in a bid to keep them open.

Pier 1 had $358 million in sales for the quarter ended Nov. 30, 2019, down 13.3 percent from the comparable period in 2018, while its net loss grew from the prior year to $59 million.

The retailer is already getting a jump on Memorial Day sales, posting a 40 percentoff discount on all outdoor furniture and wall decor.