Pier 1 Imports seeks bankruptcy court approval to pursue orderly wind-down of business operations

Pier 1 Imports seeks bankruptcy court approval to pursue orderly wind-down of business operations
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Pier 1 Imports Inc. PIRRQ, -28.57% said Tuesday it is seeking bankruptcy court approval to start an orderly wind-down of its business operations as soon as possible given current COVID-19 store closures. The company is planning to sell its inventory and remaining assets, including IP and e-commerce business. “This decision follows months of working to identify a buyer who would continue to operate our business going forward,” Chief Executive and Chief Financial Officer Robert Riesbeck said in a statement. “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.” The company will start liquidation sales as soon as stores can reopen in compliance with guidelines from states and health officials. Its debtor-in-possession lenders have agreed to allow the retailer to overdraw its DIP loan by about $40 million to support its continued operations through the wind-down period.

Source: MarketWatch

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