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Bankrupt Pier 1 becomes a walking zombie

July 31, 2020. Summarized by summa-bot.

Bankrupt Pier 1 Imports is winding down its brick-and-mortar operation, but its brand name will survive online.

New York (CNN Busieness)Bankrupt Pier 1 Imports is winding down its brick-and-mortar operation, but its brand name will survive online.

Retail Ecommerce Ventures (REV), an investment firm that buys beleaguered brands, is paying $31 million for the moribund home goods retailer's name and intellectual property.

The aim is to reboot Pier 1 online and create "robust ecommerce future for the brand," the firm said Friday.

Pier 1 filed for bankruptcy in February after nearly 60 years in business.

The company invests in so-called zombie brands that it believes can be revived online.

REV bought Dressbarn's brand last year from the newly bankrupt Ascena Retail Group and says it has turned into a successful online business.

It also owns the Linens 'n Things brand, Franklin Mint and is the lead bidder for bankrupt Modell's Sporting Goods.

After seeing its near immediate success, we knew this model would work very well with Pier 1 as well, whose fans have been buying home goods for almost 60 years. "

And then there's Bed Bath & Beyond (BBBY) and Tuesday Morning (TUES), rival home goods retailers that have also struggled in recent years from many of the same forces pressuring Pier 1.

Bed Bath & Beyond announced earlier this month it's closing around 200 stores over the next two years, and Tuesday Morning filed for bankruptcy in May and is closing a third of its stores.

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