Pier 1: S&P Warns Chapter 11 Filing Possible

USA Today reported on April 25, 2019 that S&P warned that the home goods retailer Pier 1 might be headed for Chapter 11 bankruptcy. That should be a surprise to no one as the company is caught up in the retail revolution; same store sales are dropping; a turnaround plan has failed to be effective and management has been changed, etc. S&P dropped its debt rating to CCC- from CCC+. Yes, the writing is all over the wall.There are two sister BDCs with $16.3mn in senior debt  exposure to the beleaguered company which has already been written down by a quarter. Those are MAIN and non-traded HMS Income. Our assessment of potential income and realized losses remains the same as expressed in the Company File on April 17, 2019.