Pier 1 Files Bankruptcy:
- Single store in 1962
- Started 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
- Could not find a buyer
- Closing all 540 stores permanently
- Could not compete with on-line businesses
- COVID’s impact just intensified their dire financial woes.
Pier 1 is now exclusively an on-line store. https://en.wikipedia.org/wiki/Pier_1_(retail_chain)
Bankruptcy may be the only option not only for businesses but also individuals as we move forward. The new Subchapter V for small businesses when filing a Chapter 11 Bankruptcy https://njbankruptcylawfirms.com/chapter-11-small-business/.
Do not wait until your business has to close. Keep in mind there is a new Subchapter V of Chapter 11 that allows Small Businesses to file bankruptcy as well as individuals. This new Subchapter provides a less expensive and more streamline process for filing Chapter 11.
As times go on, we will see more and more retail stores close their doors. 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” used to be a pleasurable experience. However, going to the mall is just not seen as pleasurable any longer. You can search on-line and look at competitive pricing. Many stores have free shipping, too.
You can call me for a free bankruptcy consult: Ralph A. Ferro, Jr., Esq., Board Certified Bankruptcy Attorney.