Pier 1 Files For Bankruptcy, Confirms VA Store Closures

VIRGINIA — Pier 1 Imports announced Monday that it has filed bankruptcy and is pursuing the sale of the company. Pier 1, which announced last month its plans to close 450 stores, including 14 in Virginia, is moving forward with those store closures. It is not clear how the potential sale will impact the remaining stores.To date, the company has closed or initiated going-out-business sales at more 400 locations.

Pier 1 said it will use a third-party liquidator to help with the closings, noting that its lenders signed off on its plan to reduce its brick-and-mortar footprint.

Virginia stores designated for closure are:

• 8105 Sudley Road, Manassas
• 5857-A Leesburg Pike, Falls Church
• 6751-A Frontier Driver, Springfield
• 21050 Southbank, Sterling
• 35 Conston Avenue, Christiansburg
• 1169 Nimmo Parkway, Suite 218, Virginia Beach
• 3901 Richmond Hwy. Alexandria
• 729 Southpark Boulevard, Colonial Heights
• 12551 Jefferson Avenue, Suite 161, Newport News
• 1250 Stafford Market Place, Stafford
• 1951 Swanson Drive, Charlottesville
• 7684 Richmond Hwy., Alexandria
• 1717 Clarendon Blvd., Arlington
• 4609 Duke St., Alexandria

The list of store closings included in the bankruptcy filing backs up a report by Business Insider published Jan. 15.

Related:

• NoVA, DC Store Closings By Chain Retailers In 2019
• VA, DC Retail Apocalypse: Another Chain Closing All Its Stores
• 2 Gap Clothing Stores In Virginia Close

In connection with the bankruptcy filing, Pier 1 is also in the process of closing two distribution centers.

"In recent months, we have taken significant steps forward in our business transformation and cost-reduction initiatives. 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," Robert Riesbeck, Pier 1's CEO, said in a statement.

In the statement, Riesbeck said the company is "pleased with the initial interest as we engage in discussions with potential buyers."

The remaining Pier 1 stores and website are open and operating and the company said it "expects to operate its business in the normal course during this process."

The company said it expects to "smoothly transition" its business into Chapter 11, including continuing to pay wages and benefits, as well as paying vendors and suppliers.

Pier 1 intends to conduct a court-supervised sale process and complete the sale through a Chapter 11 plan. The expected deadline to submit a qualified bid will be on or around March 23, the company estimated.