S&P Global Ratings warned on Wednesday that home goods retailer Pier 1 Imports is careening toward a potential bankruptcy restructuring, USA Today reported. S&P Global Ratings warned that the "potential for a bankruptcy filing or debt restructuring is continuing to increase" for Pier 1 as its retail performance continues "to deteriorate significantly." The warning comes after Pier 1 announced last week that it could close as many as 145 of its 973 stores. S&P downgraded Pier 1’s credit rating from CCC+ to CCC-, reflecting concerns about the company's ability to pay back its debts. “The negative outlook reflects that we do not see a path for Pier 1 to return to profitability in the coming six months to one year, even when factoring in the full impact of planned performance improvements,” S&P said.
