66 East Main Street, 3rd Floor
Little Falls, NJ 07424

Chapter 11 Bankruptcy – Pier 1

cHAPTER 11 Bankruptcy
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As a bankruptcy lawyer, I see many of my family’s favorite retail stores filing bankruptcy  https://njbankruptcylawfirms.com/bankruptcy-attorney-discusses-iconic-store-bankruptcies/.   It appears that rough waters did not make Pier 1 a good sailor – Pier 1 Files Bankruptcy.   On-line competition clearly was a major factor to Pier 1 filing Chapter 11 Bankruptcy.

Pier 1 Files Bankruptcy:

Background:

  • 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.