Pier 1 Imports is Closing all of it’s Canadian locations after filing Bankruptcy.
Pier 1 Imports is closing all of it’s Canadian storefronts. This comes after starting proceedings for Chapter 11 Bankruptcy in both Canada and the United States. The stylish furniture retailer has been dealing with financial woes for years.
A Virginia court has set the outline of the case with regards to the future sale of the company, and the operations and debts to be handled.
While it’s unclear how many jobs will be lost, the company has begun asking for bids for ownership. The court has set March 23rd as the deadline, with no bids currently received.
Despite this, the company leadership has stated they feel confident that they will find a buyer.
In an effort to stay afloat until then, Pier 1 has reached out to several financial institutions for backing. Bank of America, Wells Fargo, and Pathlight Capital LP have contributed a total of $256 million in assistance.
CEO and Chief Financial Officer Robert Riesbeck stated the money is to allow them the “time and financial flexibility” to securely sell the company.
“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. “CEO and Chief Financial Officer Robert Riesbeck
The company intends to keep temporary limited retail operations up and running in the US, and a living online store as well. However, the over 450 stores have already started to push out their stock with sales and specials.
Shifting markets leave companies to either sink or swim.
Pier 1 is not the only retail giant to fall due to market changes. Forever 21 suffered a similar fate. Authentic Brands, along with two other co-investors, purchased the clothing retailer for $81 million. However, they intend to keep the stores open.
Retail analysts have speculated that models such as Pier 1 will continue down this path is their they fail to adapt. With people moving to online platforms such as Amazon and Wayfair, it’s easy to see the trend.
Wayfair is no exception. Last week they also had to cut over 500 positions. The casualty list from the shifting in market trends knows no bounds.
Struggling for years, the downturn of the Pier 1 Imports has been noticeable. In 2015, shares in Pier 1 went for about $300 USD. That dropped to $3.56 last Friday.
As the online marketplace grows to dominate how people buy and sell. Analysts agree that the winning combination of brick-and-mortar locations, and effective online presence will win.