On Monday, Pier 1, which sells home decor and accessories, announced in a news release on its website that it would be pursuing a sale of the company. To ease the process, Pier 1 said it would be entering voluntary bankruptcy proceedings.
The company said it would use this opportunity to complete a previously announced closure of up to 450 of its stores, including all of its stores in Canada. The company said it has closed or started going-out-of-business sales at 400 of its locations. The company is also in the process of closing two of its distribution centers.
“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,” Pier 1 CEO Robert Riesbeck said in the Monday release. “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.”
According to court documents filed in U.S. Bankruptcy Court, the company reported it has between 50,000 and 100,000 creditors. It indicated that it has between $500 million and $1 billion in both assets and liabilities.