February 17, 2020 − Pier 1 Imports, Inc. and seven affiliated Debtors (NYSE:PIR, “Pier 1” or the “Debtors”) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Eastern District of Virginia, lead case number 20-30805. The Debtors, an omni-channel retailer of home décor and accessories, are represented by Michael A. Condyles of Kutak Rock LLP. Further board-authorized engagements include (i) Kirkland & Ellis LLP as general bankruptcy counsel; (ii) Alix Partners LLP as financial advisors; (iii) PricewaterhouseCoopers LLP as tax advisors; (iv) A&G Realty Partners, LLC as real estate consultant and advisor; and (v) Epiq Corporate Restructuring, LLC as claims agent.
The Debtors’ lead petition notes between 50,000 and 100,000 creditors, estimated assets of $426.5mn and estimated liabilities of $258.3mn. Documents filed with the Court list the Debtors’ three largest unsecured creditors as (i) Guanghzhou Nanfang Furniture Co Ltd ($5.6mn trade debt), (ii) Mifaco Ltd ($2.2mn trade debt) and (iii) Maersk ($1.6mn trade debt).
In a press release announcing the filing, Pier 1 stated "that it has entered into a Plan Support Agreement (the 'PSA') with a majority of its term loan lenders and is pursuing a sale of the Company. To facilitate an orderly sale process and implement the PSA, the Company and its subsidiaries have commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Eastern District of Virginia.
The Company also intends to use this process to complete the previously announced closure of up to 450 store locations (see also Jan 6, 2020 8-K), which includes the closure of all its stores in Canada. To date, the Company has closed or initiated going-out-business sales at over 400 locations. The Company is also in the process of closing two distribution centers to reflect its revised store footprint.
Pier 1 intends to conduct a court-supervised sale process and complete the sale through a Chapter 11 plan. Pier 1 expects that the deadline to submit qualified binding bids will be on or around March 23, 2020, subject to procedures to be approved by the court."
DIP Financing
Pier 1 has received a commitment of approximately $256.0mn in in debtor-in-possession ("DIP") financing from Bank of America N.A., Wells Fargo National Association, and Pathlight Capital LP.
About the Debtors
Founded with a single store in 1962, Pier 1 Imports is a leading omni-channel retailer of unique home décor and accessories. The Company’s products are available through approximately 930 Pier 1 stores in the U.S. and online at pier1.com. For more information or to find the nearest store, please visit pier1.com.
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