After years of waning sales and store closures, Pier 1 Imports announced it would file for Chapter 11 bankruptcy and sell off the entire company.

A majority of the retailer's lenders approved a plan for Pier 1 to file a Chapter 11 bankruptcy petition with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The Fort Worth retailer received $256M in debtor-in-possession financing from three lenders to keep the firm's stores and core operations going during the Chapter 11 proceedings.

"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 and Chief Financial Officer Robert Riesbeck said in a 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.”

Pier 1's previously announced plan to shutter 450 stores across the U.S. and Canada is still in motion, with roughly 400 stores already closed or in the process of launching going-out-of-business sales.

Bank of America, Wells Fargo and Pathlight Capital LP agreed to provide Pier 1 with DIP financing to keep the retailer liquid during the Chapter 11 process.

Pier 1 says all remaining stores and online platforms will remain in business during the reorganization.

Qualified bids to purchase the home accessories company out of bankruptcy are due sometime in late March. A similar reorganization plan has been filed in Canada, where Pier 1 also maintains a store presence.

A&G Realty Partners continues to work with Pier 1 and its landlords to execute store closures and lease adjustments as needed, the company said.