The home goods company Pier One Imports has filed for bankruptcy due to the high demand for eCommerce and competitive markets.
According to Reuters, Pier One Imports Inc has filed for Chapter 11 bankruptcy protection and is currently pursuing a sale. Last month, the company was warned about its potential of continuing in a struggling retail market. There was also an announcement made that the company planned to close 450 stores and reduce jobs. Pier 1 plans to keep their stores and their online store open despite going through the bankruptcy process as reported by CEO Robert Riesbeck:
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“Today’s actions are intended to provide Pier 1 with additional time and financial flexibility as we now work to unlock additional value for our stakeholders through a sale of the Company. We are moving ahead in this process with the support of our lenders and are pleased with the initial interest as we engage in discussions with potential buyers,”
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The furniture and home goods company received a commitment of $256 million in debtor-possession financing from Wells Fargo, Bank of America, and Pathlight Capital. It also plans to begin its bankruptcy procedures and will close all stores in Canada.