Tuesday Morning to close more than half its stores nationwide
Store closings are a “critical component” of Tuesday Morning’s bankruptcy strategy.
That’s what the off-price retailer, which filed for Chapter 11 on Feb. 14, said in court documents. Tuesday Morning is seeking court approval to conduct store closing sales at 264 locations across 38 states. (The stores on the cutting block can be found here).
The retailer, which currently has 464 locations, expects most of the store closings and liquidation sales to take about eight weeks to complete, according to court documents, The sales are "necessary to maximize the value of the assets being sold," according to Tuesday Morning. Gordon Brothers has been hired to carry out the closings.
“Once the sales and closings are complete, the debtors intend to prepare those closing stores for turnover to the applicable landlords,” Tuesday Morning said in the filing.
In addition to store closings, Tuesday Morning’s restructuring plans include “significantly” cutting costs across its distribution channels as it pivots to a third-party logistics model and transitions to a more “cost-effective inventory acquisition strategy” for remaining stores.
The company has obtained a commitment from Invictus Global Management to provide $51.5 million of debtor-in-possession financing to support ongoing operations during the proceedings.
“We look forward to playing an important role in reorganizing and transforming Tuesday Morning,” said Amit Patel, partner of Invictus. “Andrew and his leadership team have our full support as they guide the company through this process and lay a foundation for a brighter future.”
Tuesday Morning previously filed for bankruptcy in May 2020, citing the prolonged closure of its stores amid the COVID-19 pandemic as an "insurmountable financial hurdle." It emerged in January 2021, closing approximately 200 stores during the process.
In September, Retail Ecommerce Ventures, owners of the assets of Pier 1, Dressbarn, Stein Mart and other brands, acquired the majority interest in Tuesday Morning.
Munsch Hardt Kopf & Harr, P.C. is serving as Tuesday Morning’s legal advisor, and Vinson & Elkins LLP is serving as legal advisor to Tuesday Morning’s Special Committee. Piper Sandler is serving as financial advisor to the company.
Court filings and other documents related to the court-supervised process are available at cases.stretto.com/TuesdayMorning.