JPMorgan Chase & Co. paid Pier 1 Imports Inc. $28.3 million as part of a deal to retool the companies' private-label credit card agreement.
JPMorgan Chase has issued private-label store cards to Pier 1 customers since 2006, when the Fort Worth, Texas, home furnishings retailer sold its in-house card issuing operations, called Pier 1 National Bank, to the New York bank.
Pier 1 disclosed in a Securities and Exchange Commission filing Thursday that it entered a new agreement with JPMorgan Chase that goes into effect Jan. 1 and shortens the pair's previous agreement. The new agreement is for 18 months, the retailer said.
Under 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 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 is able to purchase the program assets at expiration or early termination of the new agreement.