Pier 1 closing all of its stores in Canada
TORONTO -- Pier 1 is closing all of its stores in Canada, as the home decor retailer begins bankruptcy proceedings in the United States.
According to a brief statement on the Texas-based company's website, Pier 1 is pursuing a sale of the company in the U.S. amid the Chapter 11 proceedings.
“In connection with this, the Company has made the decision to move forward in the U.S. and close all stores in Canada. We thank our customers in Canada for your continued loyalty and for shopping with us over the years,” the statement read.
And in a separate press release, Robert Riesbeck, Pier 1’s CEO and Chief Financial Officer, said “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.”
“In recent months, we have taken significant steps forward in our business transformation and cost-reduction initiatives,” Riesbeck explained. “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.”
According to the press release, Pier 1 stores and its website will remain open and operating for the time being. There has been no indication when the stores will close or how many jobs will be lost.
The company explained that filing for Chapter 11 allows Pier 1 to have authority to “pay wages and benefits and honor customer commitments in the ordinary course of business.” The statement also noted the bankruptcy filing will help complete Pier 1’s previously announced store closures across North America.
Retail Analyst Bruce Winder told CTV News that Pier 1 failed to adapt in a changing retail landscape. He believes this trend will continue with other stores as well, though he thinks there is still a place for brick and mortar stores, as long as they’re used to complement an online shop.
“You’ll see strong brands and strong companies remain who will use both channels really well and you'll see everyone else sort of bow out,” he said.
In January, the company announced it was closing up to 450 of its 942 stores in Canada and the U.S. At the time, they said this was “in order to better align its business with the current operating environment."
The home goods retailer has been struggling for years with its stock tumbling from more than US$300 a share in 2015 to about US$3.56 last Friday.
Pier 1 said it expected the deadline for bidding on the company to be on or around March 23, 2020.
With files from CTVNews.ca Writer Ben Cousins