Court Approves Pier 1's Bankruptcy Application
MIAMI (CBSMiami) – It's official, Pier 1 is going out of business.
A court approved its bankruptcy application, clearing the way for the retailer to liquidate operations in about 500 stores across the country.
That won't happen until they reopen in the wake of the COVID-19 pandemic.
Pier 1 intends to shut down for good by October.
The home goods retailer has been struggling for years against rising pressure online and from big-box rivals. Its stock, which was at $300 a share in 2015, is trading at 11 cents today.
During the company's latest quarter, sales at stores open for at least one year decreased by 11.4 percent compared with the same time last year. The company also lost $59 million.
Pier 1 is far from the only casualty of competition and shifting consumer habits in retail.
In 2019, US retailers announced 9,302 store closings, a 59 percent jump from 2018 and the highest number since Coresight Research began tracking the data in 2012.
Bed Bath & Beyond, a rival home decor retailer, has also struggled in recent years. Bed Bath & Beyond's new CEO, Mark Tritton, previously worked in Target's C-suite helping build the chain's popular stable of private-label clothing and home furnishings' brands.
The discount shoe retailer Payless ShoeSource alone announced in February it would be closing all of its roughly 2,500 North American stores, up from the 2,100 it initially cited, in what The Wall Street Journal reported could be the largest retail liquidation in history.
Then in March, Charlotte Russe, Family Dollar, Abercrombie & Fitch and Chico's announced more than 1,100 closings over the course of 24 hours.
Sears and Kmart were among the retailers that also announced store closings in 2019.
Department stores and clothing brands are being hit especially hard despite a strong economy and consumers flush with cash.