Pier 1 files for bankruptcy

Article Image

Pier 1, the troubled home furnishings retailer that has...

Posted: Feb 17, 2020 4:02 PM
Updated: Feb 17, 2020 11:45 PM

Pier 1, the troubled home furnishings retailer that has closed hundreds of stores in recent years, filed for bankruptcy Monday.

The company, based in Fort Worth, Texas, released a statement saying that it reached a plan with lenders to provide it with $256 million. It will try to find a buyer for the company.

Pier 1 previously announced it will close up to 450 stores, including all its locations in Canada. Around 400 stores have already closed or started going-out-of-business sales, according to the statement.

The company currently has more than 500 stores open.

'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,' Pier 1's CEO Robert Riesbeck said. He assumed that post in November and is also the company's chief financial officer.

During Pier 1's latest quarter, sales at stores open for at least one year decreased 11.4% compared to the same period last year. The company lost $59 million.

Pier 1 is far from the only casualty of retail competition and shifting consumer habits.

In 2019, US retailers announced 9,302 store closings, a 59% jump from 2018 and the highest number since Coresight Research began tracking the data in 2012. So far this year, Macy's, Papyrus and others have announced store closings.

The home goods sector has been hit particularly hard by the rise of Amazon, Wayfair and other online competition. Big-box chains such as Target and Walmart have also strengthened their home goods' offerings.

Bed Bath & Beyond, a rival home decor retailer, has also struggled in recent years from many of the same forces pressuring Pier 1. The company's stock tanked last week after it said holiday sales fell short of expectations and that it was having trouble stabilizing its business.

Correction: Monday's statement is attributed to the company rather than the CEO.

New York Coronavirus Cases

County data is updated nightly.

Confirmed Cases: 375133

Reported Deaths: 30174
CountyConfirmedDeaths
New York City20540621752
Nassau407132132
Suffolk401531916
Westchester337671385
Rockland13280655
Orange10471444
Erie6308549
Dutchess3962142
Monroe3081230
Onondaga2295149
Albany1930112
Ulster170477
Sullivan140531
Putnam126860
Niagara108570
Oneida106958
Schenectady70129
Broome59345
Rensselaer49528
Saratoga49314
Columbia40034
Madison31915
Warren25628
Orleans24741
Steuben24541
Greene24118
Washington23813
Ontario2189
Fulton21518
St. Lawrence2072
Genesee2055
Tompkins1650
Chemung1371
Chenango1330
Tioga13322
Wayne1213
Livingston1207
Herkimer1133
Oswego1123
Clinton974
Cayuga961
Montgomery964
Chautauqua954
Cattaraugus910
Wyoming875
Delaware824
Jefferson740
Otsego735
Seneca600
Schoharie510
Allegany490
Cortland410
Yates396
Essex380
Franklin230
Lewis200
Schuyler120
Hamilton50
Unassigned00
Utica
Overcast
67° wxIcon
Hi: 85° Lo: 64°
Feels Like: 67°
Oneonta
Overcast
64° wxIcon
Hi: 78° Lo: 64°
Feels Like: 64°
Herkimer
Overcast
67° wxIcon
Hi: 84° Lo: 65°
Feels Like: 67°
Thendara
Overcast
67° wxIcon
Hi: 80° Lo: 59°
Feels Like: 67°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
Click here to learn more about A Healthier Mohawk Valley
Saluting Those Who Are Proud 2 Serve
Senior Send-Off brought to you by Herkimer College
Menu 2 Go list of takeout dinners & fish fries
Apply to Go the Distance 2020
23 courses for only $79.99