Pier 1 (NYSE:PIR) bankruptcy news is spreading following an official announcement from the company.
Here’s what investors need to know about the Pier 1 bankruptcy.
- The company notes that it has entered into a Plan Support Agreement.
- This has it working with a majority of its lenders to sell the company.
- To make sure this all goes well, a voluntary Chapter 11 Pier 1 bankruptcy has been announced.
- While going through the bankruptcy process, the company will also be closing 450 store locations.
- These closure were previously announced by PIR.
- Pier 1 also mentions that it has secured $256 million of debtor-in-possession funding from several lenders.
- It will use these funds to continue operations during the bankruptcy and to help it move forward with the sale plans.
- Pier 1 bankruptcy will also spread to its Canadian division.
- The company will be closing down all of its locations in the country as it looks to exit that market.
Here’s what Pier 1 CEO and CFO Robert Riesbeck has to say about the PIR stock bankruptcy.
“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. 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.”
The Pier 1 bankruptcy and store closures likely won’t surprise many. Plenty of companies have been shuttering locations or filing for bankruptcy as the growing threat of online shopping continues to hamper brick-and-mortar stores.
As of this writing, William White did not hold a position in any of the aforementioned securities.