In the Feb. 14 Chapter 11 bankruptcy filing, Chief Executive Andrew Berger cited Tuesday Morning Corp.’s “exceedingly burdensome debt.” (Shutterstock),
ACROSS AMERICA— The discount home goods retailer Tuesday Morning Corp. is closing more than half of its stores after filing for Chapter 11 bankruptcy protection earlier this month.
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Dallas-based Tuesday Morning will close 263 stores that are located in “low-traffic regions,” the company said in a statement.
In the Feb. 14 bankruptcy filing, Chief Executive Andrew Berger cited “exceedingly burdensome debt.” In a statement, Tuesday Morning said it had secured a $51.5 million debtor-in-possession commitment from Invictus Global Management to support operations during the bankruptcy proceedings.
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“We have determined that the best path to reorganizing and transforming the company begins with a Chapter 11 filing,” Berger said in the statement. “Fortunately, we have the support of a committed capital provider in Invictus and a clear vision for transforming into a focused retailer that serves its core, heritage markets in a profitable manner.”
The company said the “targeted approach to winding down unprofitable and underperforming stores will position Tuesday Morning to emerge from bankruptcy with a profitable, cash-generating store fleet that serves its most engaged and loyal customers.”
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Overall, the company has 487 stores in 40 states that employ about 1,600 full-time and 4,700 part-time employees.
Tuesday Morning previously sought Chapter 11 bankruptcy in May 2020, closing 200 of its stores at that time, according to MarketWatch.
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