At the result of an auction that was part of the company’s bankruptcy liquidation process, Pier 1 Imports announced in a United States Securities and Exchange Commission filing that Retail Ecommerce Ventures had won its intellectual property for $31 million.
According to Placer.ai, January to May foot traffic cross-shopping patterns over the past three years may provide some indication of who stands to benefit from Pier 1’s demise.
After a long struggle to improve operations and financial performance, resulting in a Chapter 11 filing, Pier 1 Imports has filed a motion seeking bankruptcy court approval to begin an orderly wind-down of the company’s retail operations after store locations are able to reopen following COVID-19-related closures.
With the COVID-19 pandemic and a Chapter 11 bankruptcy filing continuing to pressure the business, Pier 1 Imports is extending employee furloughs and continuing pay reductions even as it has been mailing conditional notices to staffers in its home office, customer relations call center and distribution and fulfillment centers about potential operations closures as it moves to meet requirements of the federal Worker Adjustment and Retraining Notification Act.
A range of retailers across channels are responding to the coronavirus outbreak with moves to temporarily close their stores, reduce store hours and other consumer and employee oriented initiatives.
Pier 1 entered into Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of Virginia on February 17 to facilitate a Plan Support Agreement with a majority of its term loan lenders, listing its major unsecured creditors as it did so.
As it reported tumbling financial results for the third quarter ended November 30, 2019, Pier 1 also informed investors that it could close as many as 450 of its total 942 stores.
At Pier 1 Imports’ 2019 annual meeting of shareholders held on June 19, shareholders authorized a reverse stock split at a ratio of 1-for-5, 1-for-10 or 1-for-20, and a reduction in the number of authorized shares of common stock by a corresponding ratio.
Pier 1 Imports has appointed Robert Bostrom evp/chief legal and compliance officer, and corporate secretary.
A relaunch effort has not started the way the company hoped, Pier 1 Imports stated in preliminary financial results for a second quarter that included a comparable sales decrease of 11.4% in the period year over year.