A well-known home-furnishings chain will disappear from the Canadian retail landscape.
Today, Pier 1 Imports announced that it's shutting down all 67 of its Canadian stores as its U.S. parent tries to stem the red ink in its financial statements.
It has four outlets in the Lower Mainland: 1702 West Broadway in Vancouver, 1595 Marine Drive in North Vancouver, 9771 Bridgeport Road in Richmond, and 2755 Lougheed Highway in Port Coquitlam.
Pier 1's management has entered into a plan-support agreement with a majority of its term loan lenders as it pursues the sale of the company.
The deadline for bids is expected to be around March 23, according to a company news release.
As part of this arrangement, Pier 1 has voluntarily entered Chapter 11 bankruptcy proceedings in the Eastern District of Virginia.
Three major lenders have committed US$256 million in debtor-in-possession financing, which will enable it to continue operating as it proceeds through the Chapter 11 process.
In its most recent quarterly results, Pier 1 reported a net loss of US$59 million and same-store sales down 11.4 percent compared to the same quarter of 2019.
The company's financial problems have been blamed, in part, on the rise of online retailers like Amazon and Wayfair.
Pier 1 was founded in 1962 in San Mateo, California, as Cost Plus Imports before changing its name in 1966.