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Pier 1 wants to close all 550 stores nationwide as part of bankruptcy

The chain based in Fort Worth had already closed 450 stores. Now, they hope to reopen existing stores to sell whatever products are left.
Pier 1 Imports

Fort Worth-based Pier 1 filed a motion Tuesday seeking to wind-down the company's retail operations as part of its bankruptcy proceedings. 

The retailer filed for Chapter 11 bankruptcy in February, about a month after announcing it was closing 450 stores nationwide. 

As part of the wind-down, the company plans to sell "its inventory and remaining assets, including its intellectual property and e-commerce business," the retailer announced Tuesday. 

Because of the challenges the company already faced, combined with the "uncertainty of a post-COVID world," the retailer said the wind-down is the best way to "maximize the value of Pier 1's assets." 

The announcement comes as other retailers have filed for bankruptcy and closed stores, including Dallas-based Neiman Marcus and Plano-based J.C. Penney.

Once Pier 1 stores can reopen, the company will start permanently closing the locations and sell off its products. 

Pier 1 has been struggling with increased competition from house goods online retailers. In a 2018 presentation to investors, the company acknowledged that shoppers thought its merchandise was outdated and expensive.

RELATED: Pier 1 files for Chapter 11 bankruptcy amid talks with potential buyers

The move to wind down was prompted by the company's inability to find a buyer. 

"This decision follows months of working to identify a buyer who would continue to operate our business going forward," said CEO Robert Riesbeck in a written statement. "Unfortunately, the challenging retail environment has been significantly compounded by the profound impact of COVID-19, hindering our ability to secure such a buyer and requiring us to wind down." 

In bankruptcy proceedings, the company has recommended July 1 as the asset bid deadline, with a July 8 auction date and July 15 as the sale hearing date. 

RELATED: JC Penney to close more than 240 stores as part of bankruptcy plan

RELATED: Neiman Marcus files for bankruptcy amid coronavirus pandemic

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