Pirch has filed for Chapter 7 bankruptcy.
The high-end kitchen, bath and outdoor appliance company filed for Chapter 7, which involves a total liquidation of assets. Pirch listed assets of $10 to $50 million, and debts of $100 to $500 million.
The filing come about a month after Pirch posted a message on its website that it was temporarily closing all its showrooms in a “pause of business to give management the opportunity to complete a go-forward plan.”
“We are navigating through various options,” Pirch continued. “We take this situation very seriously and are working diligently to resolve it.”
Perch’s website lists six locations, all in Southern California, along with an upcoming site in Santa Monica.
Pirch was known for its experiential showrooms, which included working faucets and stoves. In 2016, it opened a flagship in New York City in which customers could “test drive” most of the goods on display. They could even book a shower.
But after being hailed as an innovator, the company struggled. In 2018, Pirch closed six of its 10 stores in an overhaul to focus on its California locations.
Most recently, Pirch has faced lawsuits from customers, vendors and American Express. In its complaint, the credit card giant says that “over 1,800 customer disputes have been filed for over $33 million in the aggregate on customer purchases with Pirch that were processed by Amex, which Amex may be forced to pay out-of-pocket because of Pirch’s failure, malfeasance and/or refusal to perform its obligations under the Card Acceptance Agreement,” reported The Orange County Register.
Credit transaction processing merchant Worldpay also sued Pirch, alleging the company owes it more than $10.4 million in chargebacks that it has covered out-of-pocket, the report said. Similar to others suing Pirch, Worldpay said that “Pirch has refused to give Worldpay any information” about inventory, orders and its ability to fulfill outstanding orders, according to the report.