Pier 1 Imports, Inc. announced on Monday that the retail home decor company filed for Chapter 11 bankruptcy.
Pier 1 is among several brick-and-mortar stores and malls that are struggling to stay in the black as online competition continues to claim a larger share of the retail industry within the last decade.
Pier 1 expects to operate its business in the normal course during this process.
“We will continue to serve our customers regardless of how and where they shop with the style, value and selection of merchandise they want as we move through this process, and we are committed to working seamlessly with our vendors and partners,” said Robert Riesbeck, Pier 1’s Chief Executive Officer and Chief Financial Officer.
“We appreciate the ongoing dedication of our associates, whose efforts in providing our loyal customers with the experience they expect from our brand are critical to our success and the future of Pier 1.”
The Company intends to use the bankruptcy process to complete the previously announced closure of up to 450 store locations, which includes the closure of all its stores in Canada.
To date, the Company has closed or initiated going-out-business sales at over 400 locations.
The Company is also in the process of closing two distribution centers to reflect its revised store footprint.
Pier 1 will ask the bankruptcy court to grant authority to pay wages and benefits and honor customer commitments in the ordinary course of business.
The company stated that it will also continue to pay vendors and suppliers in the ordinary course for all goods and services provided on or after the Chapter 11 filing date.
In connection with its plans to close all its stores in Canada, Pier 1 is also commencing proceedings in Canada.