Despite a bit of a turn-around, COVID-19 and existing debt hit Pier 1 pretty hard. The brand has been suffering from execution issues and problems from competition like Amazon and Wayfair. In February of 2020, Pier 1 filed for bankruptcy. By May, the brand decided to shut down all of its stores. Many blame the Coronavirus, and while that had a huge hit, Pier 1 has been struggling for a while. All 540 stores will shut down.
In addition to these challenges, Pier 1 faced criticism over its merchandise quality and pricing, as well as its lack of investment in digital channels and e-commerce capabilities. Despite efforts to restructure and stay afloat, including a potential sale to a private equity firm, Pier 1 was ultimately unable to recover. The company's bankruptcy marked the end of an era for the once-popular retailer and a reflection of the challenges facing brick-and-mortar retailers in the age of online shopping.