Pier 1 is officially going out of business

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CHICAGO, ILLINOIS – FEBRUARY 18: A sign hangs above a Pier 1 imports store that is slated to close on February 18, 2020 in Chicago, Illinois. The struggling retailer announced today that it had filed for bankruptcy and was closing 450 stores. (Photo by Scott Olson/Getty Images)

Pier 1 is officially closing up shop after receiving approval from a bankruptcy court to cease and liquidate its retail operations.

The troubled home goods retailer had its plans authorized Friday to begin liquidation sales across its 500 remaining stores once they can reopen. Its stores have temporarily closed because of Covid-19.

Pier 1 aims to have all its stores permanently shuttered by October.

“This is not the outcome we hoped for when we began this process, and we are deeply saddened to move forward with winding down Pier 1,” said CEO Robert Riesbeck in a release.

The retailer asked asked a federal judge last week to close the Pier 1 brand “as soon as reasonably possible” because of the pandemic and failing to find a buyer to rescue the nearly 60-year-old company. It decided that an “orderly wind-down is the best way to maximize the value of Pier 1’s assets.”

Pier 1 said it plans to sell its website and intellectual property in July. Orders placed on its website, which is currently promoting a going-out-of-business sale, will continue to be fulfilled.

The company filed for bankruptcy in February following years of decline. It once had more than 1,000 stores, but has struggled in recent years because of online competition and big-box chains, like Target and Walmart, strengthening their home goods offerings.

It’s becoming increasingly tough for smaller retailers to compete against them, especially this year when their larger competitors didn’t have to close their stores during the pandemic. Tuesday Morning, a discount home good chain with around 700 stores, filed for bankruptcy last week.

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