Home furniture store Pier 1 Imports will be closing all Canadian stores after filing for Chapter 11 bankruptcy in the United States.
The company had previously announced that it would be shutting down 450 stores in North America. This now constitutes all of its stores in Canada, including two in Greater Victoria.
The announcement was made on February 17th and a brief explainer is posted on the Pier 1 Imports website thanking customers in Canada.
“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 CEO and CFO, Robert Riesbeck, 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 has set the deadline to submit qualified binding bids on or around March 23, 2020.
Thus far, the company has received a commitment of approximately $256 million in debtor-in-possession financing from Bank of America N.A., Wells Fargo National Association, and Pathlight Capital LP.
Once approved in court, the furniture chain expects this will provide enough liquidity for the company to support continued operations in the U.S.
Pier 1 Imports was founded in 1962 and has since been hurt by emerging online retailers like Wayfair as well as giants like Walmart.