Pier 1 In Algonquin Will Close

ILLINOIS — Pier 1 Imports in Algonquin is among 16 stores in Illinois that will be closing. The Texas-based home decor chain announced it has filed for Chapter 11 bankruptcy and hopes to sell the business.

The news comes a month after the company said it would close 450 stores nationwide, signaling that it planned to shutter more than a dozen in Illinois.

To date, the company has closed or initiated going-out-of-business sales at more than 400 locations, including its location at 718 S. Randall Road in Algonquin. Pier 1 said it will use a third-party liquidator to help with the closings, noting that its lenders signed off on its plan to reduce its brick-and-mortar footprint.

In connection with the bankruptcy filing, Pier 1 is also closing two distribution centers.

"In recent months, we have taken significant steps forward in our business transformation and cost-reduction initiatives," Pier 1 CEO Robert Riesbeck 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."

In the statement, Riesbeck said the company is "pleased with the initial interest as we engage in discussions with potential buyers."

The remaining Pier 1 stores and website are open and operating, and the company said it "expects to operate its business in the normal course during this process."

The company said it expects to "smoothly transition" its business into Chapter 11, including continuing to pay wages and benefits, as well as pay vendors and suppliers.

Pier 1 intends to conduct a court-supervised sale process and complete the sale through a Chapter 11 plan. The expected deadline to submit a qualified bid will be on or around March 23, the company estimated.

Pier 1 said A&G Realty Partners is assisting the company with its previously announced store closures and lease modifications. A&G posted a list of closings that reflect the 13 Illinois locations removed from the Pier 1 website in January — a move that a Pier 1 employee confirmed was a harbinger of bad news.

The list contains three additional Illinois locations (bolded) not previously removed from the Pier 1 website:

1. Algonquin: 718 S. Randall Road
2. Aurora: 4362 E. New York St.
3. Batavia: 481 N. Randall Road
4. Bloomingdale: 360 W. Army Trail Road
5. Bolingbrook: 1116 W. Boughton Road
6. Bourbonnais: 1660 N. State Route 50
7. Carbondale: 1401 E. Main St.
8. Chicago: 1014 S. Canal St.
9. Chicago: 1574 N. Kingsbury St.
10. DeKalb: 2371 Sycamore Road
11. Forsyth: 987 S. Route 51
12. Glenview: 2331 Willow Road
13. Mundelein: 3062 W. Route 60
14. Oak Park: 1143 W. Lake St.
15. Schaumburg: 1522 E. Golf Road
16. South Elgin: 358 Randall Road

Illinois Pier 1 stores that will apparently remain open include locations in Joliet, Chicago Ridge, Wheaton, Oswego, Deer Park, Orland Park, Tinley Park, Vernon Hills, McHenry and Rockford.
Kara Seymour, Patch Staff, contributed to this article.