Retail Ecommerce Ventures (REV), an investment firm that buys besieged brands, is paying $ 31 million for the dying name of the home goods and intellectual property retailer. The goal is to restart Pier 1 online and create a “strong e-commerce future for the brand,” the firm said Friday.
Pier 1 filed for bankruptcy in February after nearly 60 years in business. He evaluated his survival options but couldn’t find any, and he finally obtained court approval in May to permanently close his 500 stores. Clearance sales started in May.
REV is a co-owner of social media influencer Tai López and Alex Mehr, co-founder of online dating website Zoosk.
The company invests in so-called zombie brands that it believes can be revived online. REV bought the Dressbarn brand last year from the recently ruined Ascena Retail Group and says it has grown into a successful online business. She also owns the Linens’ n Things brand, Franklin Mint, and is the top bidder for the bankruptcy of Modell’s Sporting Goods.
“In just eight months, we were able to change the entire Dressbarn business,” Mehr said in a statement. “The most important thing we did was meet consumers where they already were: online. After seeing its almost immediate success, we knew that this model would also work very well with Pier 1, whose fans have been buying household items for nearly 60 years. years”.
Pier 1 joins a crowded online space filled with entrenched competitors. Buyers have increasingly turned to Amazon (AMZN), Wayfair (W), Etsy (ETSY) and other e-commerce companies. Big box chains like objective (TGT) and Walmart (WMT) They have also strengthened their home goods offerings in recent years.
And then there is Bed bath and beyond (BBBY) and Tuesday in the morning (SEA), rival household goods retailers that have also struggled in recent years as many of the same forces pressured Pier 1. Bed Bath & Beyond announced earlier this month that it will close about 200 stores in the next two years, and Tuesday morning filed for bankruptcy in May and is closing a third of its stores.
