Feb. 17, 2020

Pier 1 has filed for Chapter 11 bankruptcy in an attempt to find a buyer.

“The company fully expects to operate its business in the normal course during this process, and Pier 1’s continuing stores and online platform are open and operating,” Pier 1 said in a news release.

It has received a commitment for $256 million in debtor-in-possession financing, that if approved by the U.S. Bankruptcy Court for the Eastern District of Virginia, will allow it to operate until a sale.

Pier 1 plans to complete the closure of up to 450 of its 942 stores, which it announced in early January. Locations in Sioux Falls and Rapid City are not among those closing.

“In recent months, we have taken significant steps forward in our business transformation and cost-reduction initiatives. We have worked to establish an appropriately sized and profitable store footprint, operating structure and merchandise assortment that will enable Pier 1 to better serve our customers across store and online channels,” CEO and CFO Robert Riesbeck said.

“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.”

The company said it expects that the deadline to submit bids will be in late March.