The company, based in Fort Worth, Texas, released a statement saying that it reached a plan with lenders to provide it with $256 million. It will try to find a buyer for the company.
The company currently has more than 500 stores open.
“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,” Pier 1’s CEO Robert Riesbeck said. He assumed that post in November and is also the company’s chief financial officer.
During Pier 1’s latest quarter, sales at stores open for at least one year decreased 11.4% compared to the same period last year. The company lost $59 million.
Pier 1 is far from the only casualty of retail competition and shifting consumer habits.
Correction: Monday’s statement is attributed to the company rather than the CEO.