Off-price retailer, Tuesday Morning, announced that it has filed for Chapter 11 bankruptcy on Friday, December 10. The location in Titus Landing is listed on the stores website as closing in 2023
The Texas-based chain has also gone through a restructuring in 2020, which resulted in closing all its stores for three months. The company’s financial status was heavily impacted by the COVID-19 pandemic, which negatively affected its operations, store traffic, employee availability, and financial position.
In a statement, CEO Andrew Berger revealed that the company has decided to file for Chapter 11 bankruptcy as a means to address the “exceedingly burdensome debt.” He added that filing for bankruptcy is the best way to reorganize and transform the company.
Tuesday Morning, which started in Dallas in 1974, specializes in upscale home furnishings, housewares, pet supplies, bath and body products, toys, and seasonal decorations. Unlike other retailers in the discount segment, the company claims that it does not sell secondhand or irregular items.
To improve efficiency and reduce costs, Tuesday Morning will focus on its high-performing stores, transition to a third-party logistics model, and adopt a more cost-effective inventory acquisition strategy for its remaining stores. The company also plans to go private and delist from the Nasdaq, which would allow more flexibility in fundraising and lower operating expenses. If everything goes well, the company could go private by September 2022.
Before its previous bankruptcy in 2020, Tuesday Morning had 687 stores. Currently, the company has not announced how many stores will be affected by the bankruptcy filing.
In November 2021, CEO Fred Hand was replaced by Berger, while Chief Information Officer Bill Baumann took on the interim roles of COO and chief merchandising officer. According to Amit Patel, a partner with Invictus, Berger and the leadership team “have our full support as they guide the company through this process and lay a foundation for a brighter future.”
Berger assured customers that the company’s regular business operations would continue while the bankruptcy is pending. Tuesday Morning will continue to operate as usual, but the company will have the opportunity to reorganize its finances and operations.
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