Pier 1 Files Chapter 11 Bankruptcy:
- Single store in 1962
- Began by selling old beanbag chairs and love beads to hippies in California.
- Grew to offer just about anything for the home, from lounge chairs to curtains
- At its height, Pier 1 had more than 1,200 stores.
Chapter 11 Outcome:
- Filed for Chapter 11 in hopes of creating some financial stability
- No buyer was found
- Closed all 540 stores permanently
- Could not compete with on-line businesses
- COVID’s impact just intensified their dire financial woes.
Pier 1 is exclusively an on-line store. https://en.wikipedia.org/wiki/Pier_1_(retail_chain)
Filing bankruptcy may be the only option not only for businesses but also individuals as we move forward. The new Subchapter V for small businesses is available when filing a Chapter 11 Bankruptcy https://njbankruptcylawfirms.com/chapter-11-small-business/.
Do not wait until your business has to close. There is a new Subchapter V of Chapter 11 that allows Small Businesses and individuals to file bankruptcy. This new Subchapter provides a less expensive and more streamlined process for filing Chapter 11.
We will see more and more retail stores close their doors. https://njbankruptcylawfirms.com/business-bankruptcies/bankruptcy-attorney-blog-iconic-retail-store-bankruptcy/ On-line competition plays a big role in retail stores filing bankruptcy. More and more consumers find it better and more efficient to purchase directly on-line. “Going to the Mall” was a pleasurable experience. Now going to the mall is just not seen as pleasurable. You can search on-line and look at competitive pricing. Many stores offer free shipping, too.
Call me for a free bankruptcy consult: Ralph A. Ferro, Jr., Esq., (201) 446-5904 – Board Certified Bankruptcy Attorney.