Retail Ecommerce Ventures (REV), an expenditure organization that purchases beleaguered brand names, is having to pay $31 million for the moribund dwelling goods retailer’s identify and mental assets. The purpose is to reboot Pier 1 on line and generate “strong ecommerce foreseeable future for the model,” the business said Friday.
Pier 1 submitted for personal bankruptcy in February just after virtually 60 decades in enterprise. It evaluated its survival options but could not discover any, and it in the end gained courtroom approval in May perhaps to completely close its 500 merchants
. Liquidation profits started in Might.
REV is co-owned by social media influencer Tai Lopez and Alex Mehr, the co-founder of on the web dating web-site Zoosk.
The enterprise invests in so-termed zombie brands that it thinks can be revived on-line. REV bought Dressbarn’s brand name very last calendar year from the newly bankrupt Ascena Retail Team
and says it has turned into a prosperous on line enterprise. It also owns the Linens ‘n Factors model, Franklin Mint and is the guide bidder for bankrupt Modell’s Sporting Products.
“In just 8 months, we were being ready to convert close to Dressbarn’s full enterprise,” Mehr claimed in a assertion. “The major thing we did was meet customers in which they by now have been: online. Immediately after viewing its in the vicinity of instant success, we knew this model would do the job pretty very well with Pier 1 as effectively, whose enthusiasts have been getting household items for pretty much 60 yrs.”
Pier 1 is joining a crowded place online loaded with entrenched opponents. Buyers have increasingly turned to Amazon (AMZN)
, Wayfair (W)
, Etsy (ETSY)
and other e-commerce enterprises. Massive-box chains this sort of as Goal (TGT)
and Walmart (WMT)
have also strengthened their house merchandise choices in the latest years.
And then you can find Mattress Tub & Further than (BBBY)
and Tuesday Morning (TUES)
, rival household products stores that have also struggled in new several years from numerous of the very same forces pressuring Pier 1. Mattress Bath & Further than introduced previously this month it really is closing all over 200 shops
more than the following two several years, and Tuesday Morning filed for bankruptcy
in Could and is closing a 3rd of its retailers.