Guggenheim Partners

How Tai stole Pier 1: stalking horse bid when everyone fled COVID

Tai recounts the deal mechanics: Pier 1 entered Chapter 11 pre-COVID, then collapsed; all other bidders vanished. He became the stalking horse bidder, negotiated down with banker Guggenheim, and structured a crafty asset purchase agreement.

“Post-COVID, it collapsed. The auction disappeared. The bankruptcy court in Delaware no longer existed. All other bidders disappeared. They began to do a liquidation. There was plenty of inventory. The liquidators was Gordon Brothers, was doing well. I came into the banker Guggenheim. I don't know if you know Guggenheim, whatever, $8 billion fund bank in New York. I negotiated way down from the original price, got it all the way down, was declared— became the stalking horse bidder, negotiated a crafty APA, asset purchase agreement”