Troubled discount home-goods retailer Tuesday Morning Corp. will close more than half its locations nationwide after filing for Chapter 11 bankruptcy protection for the second time in three years.
The company filed for bankruptcy on Feb. 14, with Chief Executive Andrew Berger citing “exceedingly burdensome debt.” The company said it has secured a $51.5 million debtor-in-possession commitment from Invictus Global Management.
“We have determined that the best path to reorganizing and transforming the company begins with a Chapter 11 filing,” Berger said in a 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.”
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Tuesday Morning said it currently operates 487 stores in 40 states, and it employed about 1,600 full-time and 4,700 part-time workers according to its most recent 10-K filing.
The company said the 263 stores targeted for closure are largely in “low-traffic regions.”
“The company believes this 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,” Tuesday morning said in a statement.
The Dallas-based retailer previously filed for Chapter 11 in May 2020, in the early days of the pandemic, and closed more than 200 of its stores then.
In November, Tuesday Morning announced a 1-for-30 reverse stock split and replaced its CEO, chief operating officer and chief merchant, and in December, the company said it planned to delist its shares from the Nasdaq Capital Market as it plans to turn private by September.
Tuesday Morning shares
TUEMQ,
have collapsed over the past 12 months, falling 99%, and have sunk 36% year to date.
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