Pier 1 Imports (PIR) has filed for Chapter 11 bankruptcy protection as it looks for a buyer for its assets. The home goods retailer announced it was closing up to 450 stores in early January, nearly half of its store fleet.

Pier 1 Imports said in its announcement that it has closed or started the closing process at over 400 stores, including all of its locations in Canada. The company will also close two distribution centers to align with its reduced store portfolio.

Pier 1 Imports intends to conduct a sale of the company in bankruptcy with the deadline to submit bids slatted for about March 23. The company is also filing Chapter 11 in Canada.

The company has secured $256 million in debtor-in-possession financing, which combined with its cash flows from current operations, is expected to allow Pier 1 to continue operations and the sale process. The company said its remaining stores and website are open and operating as normal.

Through the Chapter 11 filing, Pier 1 Imports said it expects to continue paying employee wages and benefits as well as vendor and supplier payments.

“In recent months, we have taken significant steps forward in our business transformation and cost-reduction initiatives,” Robert Riesbeck, CEO and CFO at Pier 1 Imports, said in a statement. “We have worked to establish an appropriately sized and profitable store footprint, operating structure and merchandise assortment that will enable Pier 1 to better serve our customers across store and online channels.

“Today’s actions are intended to provide Pier 1 with additional time and financial flexibility as we now work to unlock additional value for our stakeholders through a sale of the Company. We are moving ahead in this process with the support of our lenders and are pleased with the initial interest as we engage in discussions with potential buyers,” he added.

Pier 1 Imports has hired A&G Realty Partners to assist with the store closures and lease negotiations. Kirkland & Ellis LLP and Osler, Hoskin & Harcourt LLP are serving as the company’s legal advisors in both the U.S. and Canada, respectively. AlixPartners LLP was hired as Pier 1’s restructuring advisor, and Guggenheim Securities, LLC is the company’s investment banker.

Shares of Pier 1 Imports stock were down 5.82% as of 11:48 a.m. EST on Tuesday.

Pier 1 Imports
After announcing that it would be closing 45 stores, Pier 1 Imports filed bankruptcy. A Pier 1 Imports sign is seen on April 19, 2019 in Miami, Florida. The company announced that it's shuttering as many as 45 locations this year or up to 15% of stores if they are unable to reach performance goals, sales targets, and reductions in occupancy and other costs. Getty Images/Joe Raedle
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