By Vakkas Dogantekin
ANKARA (AA) - U.S.-based home furnishing company Pier 1 Imports, which has nearly 1,000 stores across U.S. and Canada, filed for Chapter 11 bankruptcy on Monday after years of financial trouble.
The company, which was already in the process of closing 450 stores, also announced it has the approval of its lenders to pursue a sale of the company.
Robert Riesbeck, CEO and CFO of the struggling company, said in a statement that the decision to file for bankruptcy protection will allow the company more “time and financial flexibility” to get Pier 1 through to a sale.
Pier 1 said it would begin bankruptcy proceedings in Canada as well.
U.S. retailers have been increasingly suffering from the negative effects of the growth of e-commerce. Earlier, Walmart has also announced that it is going to cut costs by closing hundreds of stores.