The pandemic has hit many retailers hard. With stores closed, consumers have been turning to online retailers. J.C. Penney has filed for bankruptcy and plans to close some of their stores. Neiman Marcus and J Crew have also filed for bankruptcy, putting part of the blame on the coronavirus.
Pier 1 filed for bankruptcy 3 months ago, and now, the 58-year-old home products store has decided to permanently close the doors on all of their stores.
Retailers like Pier 1 were already struggling before the pandemic partly because online retailers like Amazon and Wayfair have become increasingly popular for furniture and decor purchases. Stores like Target have also started selling more fashionable home furnishings, which gave stores like Pier 1 more competition than they could handle.
Pier 1 closed half their stores last year, but it wasn’t enough. Now, they plan to close the remaining 500 stores, sell off their inventory and sell their website.
In a press release, the company explained the decision.
“Ultimately, due to the combination of a challenging retail environment and the new reality and uncertainty of a post-Covid world, the company and its advisers determined that an orderly wind-down is the best way to maximize the value of Pier 1’s assets.”
For more about this unfortunate announcement, watch the video below.
Pier 1 has told the bankruptcy court it wants to stop its retail operations “as soon as reasonably possible.” In the meantime, the company has said they will be fulfilling any orders that were placed online.
Are you surprised that Pier 1 is closing?