Pier 1 files for Chapter 11 bankruptcy protection

Feb 17 (Reuters) – Home decor and furniture retailer Pier 1 Imports Inc on Monday said it had filed for bankruptcy protection and was pursuing a sale, a month after it warned of its ability to continue as a going concern in a tough retail environment.

The company is the latest retailer struggling in a market dominated by e-commerce giant Amazon.com Inc and other retail stalwarts like Walmart Inc, and had announced plans last month to close up to 450 stores and cut jobs.

Pier 1 said it had received a commitment of about $256 million in debtor-in-possession financing from Bank of America, Wells Fargo National Association, and Pathlight Capital LP.

The retailer said it expects to keep its stores and online platform open and running during the process.

“We are moving ahead in this process with the support of our lenders and are pleased with the initial interest as we engage in discussions with potential buyers,” Chief Executive Officer Robert Riesbeck said in a statement.

Pier 1 said it would also begin bankruptcy proceedings in Canada in addition to closing all its stores in the country.

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