SAN FRANCISCO (KRON) – Embattled home goods retailer Pier 1 Imports is on the brink of closing all of its stores permanently three months after filing for bankruptcy.
Pier 1 announced Tuesday that it’s asking the bankruptcy court to cease its retail operations “as soon as reasonably possible,” pointing blame at temporary store closures caused by coronavirus and failing to find a buyer.
In a statement, the company said it had analyzed all other ways it could remain in business but ultimately determined liquidation was the best option.
“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 said in the statement.
Pier 1 said it plans to sell its remaining inventory, website and intellectual property.
Orders placed on its website will continue to be fulfilled.
Its lenders have agreed to let Pier 1 overdraw its lending facility by $40 million to help it fund the liquidation process.
The company currently has more than 500 stores — down from 1,000 last year.
It’s not alone in filing for bankruptcy – major retilers JCPenney, Neiman Marcus, and J Crew have all filed in recent weeks.
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