Burlington, WA – Pier 1 Imports is reportedly closing up to 450 of its 942 stores and attempting to reduce its corporate expenses, including cutting nearly 300 (40%) of its headquarters staff in 2020.
With nearly half of Pier 1 Imports stores closing, there’s a good chance some local stores could be in jeopardy.
For decades the retailer was one of the most popular destinations for affordable home goods and decorations but after several quarters of sales losses and mounting competition from retailers such as Amazon.com, Walmart and Wayfair, the company has drafted a Chapter 11 bankruptcy plan. The company has already made a presentation to creditors to shrink the company by nearly half. On January 6, 2020, the company entered into a Consent to the Second Amended and Restated Credit Agreement with Bank of America, N.A., as administrative agent and collateral agent, Pathlight Capital Fund I LP, as ABL term loan agent and the lenders party thereto (the “Consent”), which evidences the consent of the lenders to permit the reduction of the Company’s store footprint and related actions.
In a filing with the United States Securities and Exchange Commission, the Board of Directors for the company approved a plan that contemplates the closure of up to 450 stores in order “to better align its business with the current operating environment.” The company also plans to close distribution centers and has cancelled some orders to reduce corporate expenses.
There are seven (7) Pier 1 Imports stores within 75 miles of Skagit County, including the Burlington Location. The other six locations include, Bellingham, Mill Creek, Lynnwood, Silverdale, Bellevue and Tukwila.
“Although decisions that impact our associates are never easy, reducing the number of our brick-and-mortar locations is a necessary business decision,” Pier 1 CEO and Chief Financial Officer Robert Riesbeck said in a news release.
The company said it is “utilizing the services of a third-party liquidator to help manage the store closings.” A timeline for the liquidation sales and a list of what stores will officially be closing was not immediately available.