Pier 1, RadioShack Owner Seeks Funding for Possible Bankruptcy

Rachel Butt, Bloomberg News

A temporarily closed Pier 1 Imports Inc. store stands in Fairfax, Virginia, U.S., on Thursday, May 21, 2020. Pier 1 this week said it would seek bankruptcy court approval to wind down its brick-and-mortar operations after the coronavirus pandemic made it difficult for the U.S. retailer to find a buyer. Photographer: Andrew Harrer/Bloomberg , Bloomberg

(Bloomberg) -- The owner of Pier 1 Imports and RadioShack is sounding out investors to finance itself through a possible bankruptcy, according to people with knowledge of the situation.

Retail Ecommerce Ventures LLC is considering pledging the intellectual property of some of the brands it owns to raise money, said the people, who asked to remain anonymous because the talks are private.

When the pandemic sparked a wave of retail bankruptcies, Retail Ecommerce Ventures picked up a slew of iconic brands on the cheap, with the aim to revive them as online-first businesses. Its portfolio also includes Modell’s Sporting Goods and Stein Mart.

Now it’s looking to line up a potential buyer for its portfolio companies, the people said. Investment bank Piper Sandler Cos has been providing advice to Retail Ecommerce Ventures, they said.

Representatives at Retail Ecommerce Ventures and Piper Sandler didn’t respond to requests for comment.

The New York Post earlier reported the company was considering options including bankruptcy.

Founders Alex Mehr and Tai Lopez have been active in promoting their venture to retail investors on social media and TV, telling them they can profit from a strategy that buys distressed brands for pennies on the dollar and then turns them around.

The duo sought to rebrand century-old RadioShack by launching a cryptocurrency exchange platform last year as the brand garnered social-media attention from tweets filled with expletives and profanity.

More recently, Retail Ecommerce Ventures led a $35 million financing deal for Tuesday Morning Corp. The discount retailer filed for bankruptcy for the second time last month after battling supply chain bottleneck and inflationary pressures.

--With assistance from Cristin Flanagan.

(Adds details on RadioShack’s rebranding in eighth paragraph.)