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.
