Chase Buys Pier 1 Credit Card Business for $155 Million

Chase

Buys Pier 1 Credit Card Business for $155 Million

Home furnishings chain Pier 1 Imports announced Wednesday the

sale of its credit card business to Chase for $155 million.

For its money Chase receives about one million active Pier 1

accounts with about $140 million in balances. The Pier 1 Preferred

Card will continue to be offered to customers, and Pier 1 will

receive additional ongoing payments based on credit card sales,

new account generation and other credit-related activities.

According

to the two companies, Chase will also provide help on customer

marketing initiatives designed to increase Pier 1's retail sales

& profitability, although no details were provided on exactly

how Chase might accomplish this.

The

transaction has been approved by both companies and is expected

to close in the fourth quarter of 2006.

Published 08/31/06 (Modified 05/07/12)