Pier 1 Shows Bankruptcy in a Pandemic Means Gone for Good
- Bankruptcy moratorium on rent, debt payments didn’t matter
- Company’s best chance for survival ended by economic lockdown
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Bankruptcy is supposed to give damaged companies a breathing spell to reduce debt and restructure. As Pier 1 Imports Inc. acknowledged this week, heading to the courthouse in the current environment may mean just out of business.
The company told a judge it had lost all hope of surviving as a going concern because no one wants to buy it and creditors refuse to take ownership of the once-stylish furniture chain.