Retail Ecommerce Ventures (REV), an investment company that purchases branded brands, will pay $ 31 million for the name and intellectual property of retail home goods. The goal is to restart Pier 1 online and create a “robust future for e-commerce” for the brand, the company said on Friday.
Pier 1 filed for bankruptcy in February after almost 60 years of business. It assessed the chances of survival, but found none, and in May it finally obtained court approval to close its 500 stores permanently. The liquidation began in May.
REV is a co-owner of social media influencing Tai Lopez and Alex Mehra, co-founder of the Zoosk website.
The company invests in the so-called Zombie brands that he believes can be revived online. REV bought the Dressbarn brand last year from the newly bankrupt Ascena Retail Group and claims to have become a successful online store. He is also the owner of the Frankens Mint Linens̵
7; n Things brand and is a major contender for the bankruptcy of Modell’s sporting goods.
“In eight months, we were able to bypass the entire Dressbarn company,” Mehr said in a statement. “The biggest thing we did was meet consumers where they were: online. After seeing its immediate immediate success, we knew that this model would work very well with Pier 1, whose fans have been buying home goods for almost 60 years. ”
Pier 1 connects to the crowded online space filled with established competitors. Shoppers are increasingly turning to Amazon (AMZN). Wayfair (W). Etsy (Etsy) and other e-commerce businesses. Large chains such as target (TGT) and Walmart (WMT) in recent years, they have also strengthened their domestic supply.
And then there it is Bed and bath (BBBY) and Tuesday morning (tue), competing retailers of household goods, who in recent years have also struggled with many of the same forces putting pressure on Pier 1. Bed Bath & Beyond announced earlier this month that around 200 stores will close over the next two years and Tuesday morning it went bankrupt in May and closes a third of its business.