Home furnishings retailer Pier 1 has filed for Chapter 11 bankruptcy.
In a Business Wire press release published on Monday, the company announced that it is “pursuing a sale” by voluntarily filing for Chapter 11 in the eastern district of Virginia’s bankruptcy court. The statement noted that Pier 1 “intends to conduct a court-supervised sale process and complete the sale through a Chapter 11 plan,” with the deadline for “qualified binding bids” to be set around March 23, 2020.
Pier 1 didn’t immediately respond to Business Insider’s request for further comment. In its release, the company announced its intent to keep its stores and website “open and operating” throughout the bankruptcy, as well as continuing to “honor customer commitments,” compensate employees, and pay vendors and suppliers.
The Fort Worth, Texas-based company announced its intent to close 450 stores in January, and Business Insider reported that Pier 1’s social media team revealed it had deleted information about its soon-to-be-shuttered stores from its website. All Pier 1 stores in Canada will close, as well as two distribution centers.
In the statement published on Business Wire, Pier 1’s CEO and CFO Robert Riesbeck said that the filing was predominantly “cost-reduction” and establishing “an appropriately sized and profitable store footprint.”
“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,” Riesbeck said in the statement. “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.”