Pier 1 Imports, Inc. (“Pier 1” and together with its affiliates, the “Pier 1 Entities”) is an omni-channel retailer specialized in unique home décor and accessories. On February 17, 2020, the Pier 1 Entities entered into a plan support agreement with a majority of their term loan lenders and announced that they are pursuing a sale of the company. To facilitate the transaction, each Pier 1 Entity filed voluntarily petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Virginia. In connection with the Chapter 11 proceedings, Pier 1 was appointed as “Foreign Representative”.
On February 18, 2020, Pier 1, as Foreign Representative, sought and obtained relief under Part IV of the Companies’ Creditors Arrangement Act to recognize the Chapter 11 proceedings in Canada. The Ontario Superior Court of Justice (Commercial List) granted an initial recognition order and a supplemental order which, among other things, recognized the Chapter 11 proceedings as a “foreign main proceeding”, stayed all proceedings against the Pier 1 Entities, and appointed Alvarez & Marsal Canada Inc. as the Information Officer in the Canadian recognition proceedings.
The Pier 1 Entities are using the U.S. and Canadian court proceedings to complete the previously announced closure of up to 450 locations, which includes the closure of all store locations in Canada. The Pier 1 Entities also secured US$256 million in debtor-in-possession financing to provide liquidity to support their continued operations and the sale process throughout the court proceedings.
Osler, Hoskin & Harcourt LLP advised Pier 1 with a team consisting of Marc Wasserman, Michael De Lellis, Martino Calvaruso, Andrea Lockhart and Justine Erickson (Insolvency & Restructuring), John MacDonald and Waleed Malik (Litigation), Kevin Morley and Miju Damodar (Financial Services), Sven Poysa and Summer Danakas (Employment & Labour) and Greg Wylie (Tax).