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Pier 1 Imports closing all Canadian stores as it files for bankruptcy protection – Global News

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Home goods retailer Pier 1 Imports Inc. says it has filed for bankruptcy protection in the United States and plans to close all Canadian stores as part of its restructuring process.

The Texas-based company has been struggling with increased competition from budget-friendly online retailers such as Wayfair.

Pier 1 says it will pursue a sale, with a March 23 deadline to submit bids.

The company last month announced it would close 450 stores, including all its Canadian locations.

A Pier 1 Imports furniture and home furnishings store in Laval, Que. on Feb. 22, 2018.

A Pier 1 Imports furniture and home furnishings store in Laval, Que. on Feb. 22, 2018.


Mario Beauregard / The Canadian Press

Pier 1’s Canadian website now directs customers to a short statement announcing the closures and thanks them for their loyalty.

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The company is also commencing creditor protection proceedings in Canada.

Osler, Hoskin & Harcourt LLP are serving as Canadian legal advisers.

In a statement Monday, the company said it will continue to shutter stores as part of its bankruptcy proceedings. The company, which was founded in 1962, is also closing two distribution centres.


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A hearing is scheduled for Tuesday at the U.S. Bankruptcy Court for the Eastern District of Virginia. In the meantime, Pier 1 said lenders have committed approximately $256 million in debtor-in-possession financing so it can continue its operations during the Chapter 11 proceedings.

“Today’s actions are intended to provide Pier 1 with additional time and financial flexibility as we now work to unlock additional value for our stakeholders through a sale of the company,” Pier 1 CEO and Chief Financial Officer Robert Riesbeck said in a statement. Riesbeck, an executive with previous corporate turnarounds, joined Pier 1 last summer.

Pier 1’s sales fell 13 per cent to $358 million in its most recent quarter, which ended Nov. 30. It reported a net loss of $59 million for the quarter as it struggled to draw customers to its stores. Pier 1 has been trying to declutter its stores, improve online sales and draw in younger customers.

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Pier 1’s shares have fallen 45 per cent since the start of the year. They closed at $3.58 per share on Friday.

— With files from The Associated Press. 

© 2020 The Canadian Press

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Coronavirus: Air Canada to lay off 16,500 workers amid COVID-19 pandemic – Global News

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Air Canada will temporarily lay off 16,500 employees starting this week as the airline struggles with fallout from the COVID-19 pandemic.

Effective this Friday, the layoffs of 15,200 unionized workers and 1,300 managers will last through April and May amid drastically reduced flight capacity from the Montreal-based airline.

“To furlough such a large proportion of our employees is an extremely painful decision but one we are required to take given our dramatically smaller operations for the next while,” chief executive Calin Rovinescu said in a statement.


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The carrier has halted most of its international and U.S. routes in response to the global shutdown.

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States from Sweden to China to the United States have rolled out aid packages for the airline sector over the past month as borders closed and travel demand plummeted amid the spread of the novel coronavirus.

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Air Canada said its cost reduction scheme aims to save least $500 million. It includes a pledge from both the CEO and chief financial officer Mike Rousseau to forego 100 per cent of their salaries, while the rest of the executive team will give up between 25 per cent and 50 per cent.

The company will draw down about $1 billion in lines of credit to provide additional liquidity for a carrier that has a $7.3 billion cash cushion to fall back on — more than the most profitable U.S. carrier, Delta Air Lines.






0:51
Leon’s Furniture to lay off nearly 50% of workforce


Leon’s Furniture to lay off nearly 50% of workforce

Earlier this month Air Canada’s flight attendant union said 5,149 cabin crew would be temporarily laid off due to the COVID-19 outbreak. The newly announced layoffs do not include the earlier job reductions.

The pandemic has cost thousands of jobs in the airline sector. Transat AT Inc. has laid off at least 3,600 flight attendants while WestJet has seen 6,900 departures including early retirements, resignations and both voluntary and involuntary leaves.

WestJet said Monday it is cancelling all transatlantic and U.S. routes until May 4, extending its 30-day suspension by two more weeks.

Both Air Transat and Porter Airlines have halted all flights.

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© 2020 The Canadian Press

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TSX down amid oil rout while Wall Street inches up in early trading – Global News

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Canada’s main stock index was down in early trading on Monday as the price of oil slid to its lowest level since 2002. In the U.S.. however, stocks opened higher on Monday as President Donald Trump followed last week’s massive fiscal stimulus by extending his stay-at-home guidelines, leaving investors guessing at their economic impact.

READ MORE: Oil price plunges to 2002 lows amid global coronavirus shutdown

In Toronto, Canada’s benchmark S&P/TSX composite index was down 56.86 points at 12,630.88.

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In New York, the Dow Jones Industrial Average rose 41.44 points, or 0.19 per cent, at the open to 21,678.22.






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The S&P 500 opened higher by 17.51 points, or 0.69 per cent, at 2,558.98. The Nasdaq Composite gained 81.08 points, or 1.08 per cent, to 7,583.46 at the opening bell.

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On the currency market, the Canadian dollar traded for 70.57 cents US compared with an average of 71.14 cents US on Friday.

The May crude contract was down US$1.37 at US$20.14 per barrel and the May natural gas contract was down 2.3 cents at US$1.65 mmBTU.

The June gold contract was down US$10.80 at US$1,643.30 an ounce and the May copper contract was down 0.65 of a cent at US$2.17 a pound

— With files from the Canadian Press

© 2020 Reuters

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Air Canada to temporarily lay off 15000 workers due to COVID-19 fallout – CTV News

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MONTREAL —
Air Canada will temporarily lay off more than 15,000 unionized workers beginning this week as the airline struggles with fallout from the COVID-19 pandemic.

The layoffs will continue through April and May amid drastically reduced flight capacity from the Montreal-based airline.

Air Canada says the two-month furloughs will affect about one-third of management and administrative and support staff, including head office employees, in addition to the front-line workers.

The carrier is also cutting between 85 per cent and 90 per cent of its flights, cancelling most of its international and U.S. routes in response to the global shutdown.

Earlier this month Air Canada’s flight attendant union said 5,149 cabin crew would be temporarily laid off due to the COVID-19 outbreak.

This report by The Canadian Press was first published March 30, 2020.

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