JPMorgan Chase acquires Pier 1 credit card accounts

Source: JPMorgan Chase

JPMorgan Chase (NYSE: JPM) announced today a strategic alliance with Pier 1 Imports, Inc. to enhance Pier 1's credit card operations.

As part of the alliance, Chase will purchase for cash nearly one million active private label credit card accounts with outstandings of approximately $140 million. The transaction is expected to close in the fourth quarter of 2006.

In addition, Chase and Pier 1 will enter into a long-term marketing and servicing agreement under which Chase will provide enhanced response modeling strategies and innovative payment products to benefit Pier 1 cardholders. The two companies will work together on customer marketing initiatives designed to increase Pier 1's retail sales, as well as further enhance credit growth and profitability. The Pier 1 Preferred Card will continue to be offered under the Pier 1 and Pier 1 Kids brands.

"Chase is thrilled to partner with Pier 1," said Harry DiSimone, Chase executive vice president and private-label card executive. "Matching Chase's marketing prowess and sophisticated customer management practices with Pier 1's loyal customer base will result in an innovative card program that consumers will value, driving incremental sales for Pier 1."

Marvin J. Girouard, Pier 1's chairman and Chief Executive Officer, commented: "We are very pleased with this strategic partnership with Chase. Pier 1's successful 18-year proprietary credit card will continue to be an important component of marketing to our most loyal customers, and with this new business alliance, we can offer new competitive credit programs and services to Pier 1's customers."

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