MAY 19, 2020 — IT’S OFFICIAL. PIER 1 TO WIND DOWN.
The company announced that it will shut down its 540 remaining stores and liquidate any remaining inventory. Attempts to sell its intellectual property, including trademarks, and its e-commerce site are ongoing.
According to President, CEO, and CFO Robert Riesbeck, “This is not the outcome we expected or hoped to achieve. However, we are grateful to our dedicated and hardworking associates, millions of customers, and committed vendors who have collectively supported Pier 1 for decades. We deeply value our associates, customers, business partners, and the communities in which we operate. Unfortunately, the challenging retail environment has been significantly compounded by the profound impact of COVID-19, hindering our ability to secure a buyer and requiring us to wind down.”
FEBRUARY 23, 2020 — 75 LAID OFF IN GROVEPORT, OHIO
With two central Ohio stores on the chopping and only two left, the company has decided to close its distribution and fulfillment center in Groveport, Ohio, and lay off 75 employees commencing April 10, 2020.
A company spokesperson noted, “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.”
FEBRUARY 18, 2020— PIER 1 FILES FOR CHAPTER 11 BANKRUPTCY, CLOSING UP TO 450 STORES.
According to a company spokesperson, "We have worked to establish an appropriately sized and profitable store footprint, operating structure and merchandise assortment that will enable Pier 1 to better serve our customers across store and online channels. Today’s actions are intended to provide Pier 1 with additional time and financial flexibility as we work to unlock additional value for our stakeholders through a sale of the Company. 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.”
Original post…
Fort Worth, Texas-based Pier 1 Imports, a retailer specializing in imported home furnishings and décor items, has announced that it will be closing 450 of its 936 stores. The exact number of corporate and retail employees to be laid off is estimated at 2,000. The decision was driven by poor financial performance, reduced store visits, changing consumer tastes, and competition from internet retailers who have master the logistics of shipping heavy items.
The potential for a Pier 1 bankruptcy filing is enhanced since the elevation of Robert Riesbeck as the company’s Chief Executive Officer and as a director of the Company on November 4, 2019. Riesbeck will also continue to serve as the company’s Chief Financial Officer. He is an acknowledged debt restructuring expert and has worked at two firms, FullBeauty and HHGregg, which transited the bankruptcy process.
In a statement, Riesbeck noted, “Fiscal third-quarter sales and margins remained under pressure as we completed our efforts to clear out non-go-forward merchandise. Looking ahead, we believe that we will deliver improved financial results over time as we realize the benefits of our business transformation and cost-reduction initiatives. To further advance our progress, we are announcing additional actions today that will enable us to move forward with an appropriately sized store footprint and operating structure as an omnichannel retailer, and better position Pier 1 to meet our customers where they shop.”
“In order to better align its business with the current operating environment, Pier 1 intends to reduce its store footprint by up to 450 locations. To reflect the revised store footprint, the Company also plans to close certain distribution centers and reduce its corporate expenses. This includes a reduction in corporate headcount. Although decisions that impact our associates are never easy, reducing the number of our brick-and-mortar locations is a necessary business decision. We thank our team of hard-working associates for their commitment to Pier 1 and to serving our customers.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
