Pier 1 Imports, one of the original home furnishing stores that expanded throughout the U.S. starting in the 1960s, is liquidating its business as soon as it can get its stores open again.
The Fort Worth-based home furnishings retailer filed for bankruptcy in February and was trying to reorganize with about 450 stores or find a buyer who would keep the business alive.
The coronavirus pandemic dashed those hopes.
Pier 1 said Tuesday that it has filed a motion with the bankruptcy court to approve “an orderly wind-down of the company’s retail operations as soon as reasonably possible after store locations are able to reopen.”
The decision follows months of working to identify a buyer, said Robert Riesbeck, Pier 1’s CEO. "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.”
Pier 1 was founded in 1962 in San Mateo, Calif., and moved to Fort Worth in 1966, becoming one of the largest U.S. home furnishings specialty stores with 1,100 locations and sales of nearly $2 billion. For generations, particularly for the baby boomers, it was the go-to store for adding a layer of personal style to a dorm room, new apartment or house.
Pier 1 graduated from its original beanbag and Papasan chairs, love beads and incense — its peace and love days — to offering unique home furnishings and decorative accessories under its own private label. In the 1990s, it opened stores in the U.K. and boutiques inside Sears stores in Mexico. Pier 1 shut down its online business in 2007 to focus on stores, which at that point were in need of a turnaround. Pier1.com relaunched in 2012. That gap online, just as Americans were gravitating to shopping even more from home, was one decision that some say hurt the retailer.
More recently, the chain faced fierce competition in home furnishings, not only from Wayfair and Amazon online but also from Walmart and Target as they improved their merchandise. At the same time, competitors moved into more markets, taking share from Pier 1 stores. In recent years, Ikea opened second and third stores in several U.S. markets, and T.J. Maxx’s HomeGoods rapidly expanded.
Riesbeck thanked the employees and vendors who stuck with the company knowing the outcome was never certain. “We deeply value our associates, customers, business partners and the communities in which we operate,” he said. “This is not the outcome we expected or hoped to achieve.”
Until its stores open, the company will continue to sell online. Pier 1 has 53 stores in Texas and about 900 stores in the U.S. and Canada. Many of those stores have already permanently closed as part of the retailer’s original effort to reorganize around 450 locations.
Deadline for bids for the remaining assets is July 1, and an auction will be July 8 with a sale hearing on July 15. The case was filed in the U.S. Bankruptcy Court in Richmond, Va.
Kirkland & Ellis and Osler, Hoskin & Harcourt have been Pier 1’s law firms during the bankruptcy. AlixPartners is its restructuring adviser, and Guggenheim Securities is Pier 1’s investment banker.
Twitter: @MariaHalkias
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