Texas-based home furnishings retailer Pier 1 Imports is closing all its Canadian stores after filing for voluntary Chapter 11 bankruptcy in the U.S.
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In conjunction with its plans to close all Canadian stores, Pier 1 is also commencing bankruptcy proceedings in Canada. The move to close all 67 Canadian stores will begin a sale process that will allow the company to operate in the U.S. as part of a restructuring plan.
The chain’s Canadian website now directs customers to a posted message announcing that the company “has made the decision to move forward in the U.S. and close all stores in Canada." It goes on to thank Canadian customers for their continued loyalty.
“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,” said Pier 1 CEO and Chief Financial Officer Robert Riesbeck in a company news release. “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.”
The news comes after a January disclosure of a quarterly sales decline of 13.3% and a net loss of $59M. At the time, the chain announced it was reducing its store footprint by up to 450 of its 942 locations.
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