JPMorgan Chase & Co. has paid Pier 1 Imports Inc. $28.3 million as part of a deal to retool the companies’ private-label credit card agreement.
Chase has issued private-label store cards to Pier 1 customers since 2006, when the Fort Worth, Texas-based home-furnishings retailer sold its in-house card-issuing operations to the New York-based bank.
On Dec. 30, Pier 1 disclosed in a U.S. Securities and Exchange Commission filing that it entered a new agreement with Chase effective Jan. 1 that shortens the previous agreement they had. The new agreement is for 18 months, the retailer said.
As part of the early termination of the old agreement, the bank was to pay Pier 1 the $28.3 million plus remaining amounts due to the retailer.
Pier 1 received payments of $8.7 million, $7.5 million, and $8.7 million during fiscal years 2010, 2009 and 2008 respectively, for transaction-level incentives, marketing support and other terms of the previous contract. The retailer remains eligible for payments based on credit card sales and other terms and may purchase the program assets at expiration or early termination of the new agreement.
