Bankruptcy can come out of nowhere and affect even the most stable of entities if economic conditions create challenges that are too difficult to manage. While many businesses in Texas go to extensive lengths to strengthen and support their financial structure to prepare for unforeseen challenges, it is still important that they regularly assess their strategies and marketing tactics to verify that their efforts remain competitive.
The latest retailer to be facing financial uncertainty is Pier 1 who recently announced its ongoing efforts to draft and implement a bankruptcy plan. While their plan incorporates several strategic moves, one of the most notable steps in their plan to maintain a presence at all is to close nearly half of its brick and mortar locations. As of March 2, 2019, it was recorded that Pier 1 had a total of 973 stores throughout the United States and Canada, but currently, plans are underway to shutter 450 of its stores. This will mean a significant cut to the number of jobs the company has currently.
With a recognition that continuing to operate may not be possible depending on how things continue, the company warned current employees and shareholders of the possibility of closing entirely if financial stability cannot be regained. The once-successful retailer was also negotiating terms with lenders to receive additional funding throughout the bankruptcy process to be able to pay debts and continue operating.
If people are struggling to amend their financial difficulties alone, they may wish to contact a legal professional who has experience in bankruptcy filings and proceedings. With a trusted advocate by their side, people may be more successful at finding a solution to their financial woes.
Source: CNBC, “UPDATE 1-Pier 1 to close stores and cut jobs, raises going concern doubts,” Jan. 6, 2020