In spring of 2018, Pier 1 was still profitable, but its top-line and comparable sales were deteriorating. Wayfair, TJX Cos and other competitors were taking ever-bigger pieces of the home goods market for themselves. In May of that year, S&P downgraded Pier 1 to B-. It's not a great rating to be sure, but not one indicating a near-term risk of default or bankruptcy.
Less then a year later, S&P rated Pier 1 deep in junk territory, with a CCC- grade, on the increasing possibility of a bankruptcy or out-of-court debt restructuring. Today its sales are falling in double digits and its profits have turned negative. . . . more