Home goods retailer Pier 1 Imports Inc. (NYSE:PIR) has become the latest chain to announce that it is closing all of its stores in Canada.
The company has announced that it is filing for Chapter 11 bankruptcy protection in the United States and is officially closing all of its stores in Canada.
The Fort Worth, Texas-based company, which was founded in 1962 and has 1,000 stores in North America — 50 of them in Canada — says it is pursuing a sale of its U.S. retail locations while under bankruptcy protection but confirmed all Canadian stores will shuttered.
Pier 1's Canadian website now directs customers to a short statement announcing the closures and thanks them for their loyalty. The company is also commencing creditor protection proceedings in Canada. Osler, Hoskin & Harcourt LLP are serving as Canadian legal advisers.
The company has been struggling with increased competition from online retailers such as Wayfair. Pier 1 has been trying to declutter its stores, improve online sales and draw in younger customers. Pier 1 said it will conduct a court-supervised sale of the company, with a March 23 deadline to submit bids.
Pier 1's sales fell 13% to $358 million U.S. in its most recent quarter, which ended November 30, 2019. It reported a net loss of $59 million for the quarter as it struggled to draw customers to its stores.
Last month, Pier 1 announced it would close a total of 450 stores globally. The company is also closing two distribution centres. It is unknown exactly when the Canadian stores will close their doors and how many jobs will be affected. Pier 1's shares have fallen 45% since the start of this year.
