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Tuesday Morning Corp. filed for Chapter 11 bankruptcy protection, citing the prolonged closure of its stores amid the COVID-19 pandemic as an “insurmountable financial hurdle.”
The off-price home goods retailer, which has been struggling pre-pandemic, plans to permanently close about 230 of its 687 stores, or 33% of its total footprint, as part of the reorganization. The first wave of closings — at least 132 stores — will occur this summer and also eventually include the company’s distribution center in Phoenix that supports the locations. Tuesday Morning said that it expects to exit Chapter 11 this fall with approximately 450 locations.
“The prolonged and unexpected closures of our stores in response to COVID-19 has had severe consequences on our business,” stated Steve Becker, CEO. “Prior to the pandemic, we were gaining momentum in our merchant organization, growing our vendor base and improving brands, assortment and value for our customers, while investing in our technology and corporate leadership team. However, the complete halt of store operations for two months put the company in a financial position that can be effectively addressed only through a reorganization in Chapter 11.”
Tuesday Morning began reopening its stores on April 24 and, to date, has reopened about 80% of its locations. Comp-sales for the reopened stores are running about 10% higher than the year-ago period, according to the retailer.
The company has secured $100 million in debtor-in-possession financing from its lenders to help it get it through bankruptcy. As required by the DIP agreement, Tuesday Morning must obtain a commitment for up to $25 million of additional financing, which the company is negotiating.
“We plan to emerge from Chapter 11 in a stronger position as a leading home goods off-price retailer, providing unmatched value to our customers,” stated Becker. “The commitment from our lenders to provide access to significant capital demonstrates faith in our value-driven business model and iconic brand.”
Tuesday Morning’s filing comes a little over a week after J.C. Penney filed for Chapter 11.
Ally Ward….. I wonder where he will go now?
Joan Rowley hahaha right?!
Mark Furka
Tom Bruce
Ha!
Boseph Jorchester we don’t know what the fuck that is…..epic moment
Boseph Jorchester SMDH. Such a well known spot too….
amazon is just getting richer and richer
Tony Ponticello
Overpriced junk store
Dawn Gardner exactly I hate this store
Sandra McDonnell
Oh no, I just looked online to see if I could mail order..I had no idea, they were filing for bankruptcy..
Never been to one of these stores. Dont even know where they are??
Janice Ramos
Toms River has one next to PetSmart
Carol Sciara
Was one of my favorite stores
Wendy Updegraff
Bill Evans Marietta Evans
I use to go here before I went in to bbb. Good store.
Nicole Frazier What is bbb ? Heard it before can’t remember what store it is ?
Jayne Przybysz bed bath and beyond
Never herd of this store
Korie Romanowski Weiss ????
Steph Anne nooooooooooooo????????????????????????????
A day late, a dollar short
????Joanne Oehler-Alfieri
Colleen Hynes Boczkus
All of these stores that are closing, whether large chains or mom & pops, should be filing law suits against Governor Dicktator Comrad General Phillip “Chicklettoothed” Murphy.
Jay Woods Lol. You really think this is from Murphy ? You fool they are closing all across the country. How is that related to him
Laura Schneider Lange I get that, but There Are some that are closing as a direct result of the shutdowns across the country. BTW Laura you’re a Stool Sample.
Melissa DiStaulo
David Kozdron
John Nelson I guess I’ll need to find some other place to get dusty crap
David Kozdron or count dusty crap? Lol
John Nelson nah, I don’t do that anymore
Never heard of it
Never heard of it.
Kathleen Foley Mckenna, who knew?