Tuesday Morning downsizes
2 Pittsburgh-area stores among chain’s closings
Home goods retailer Tuesday Morning filed for bankruptcy protection for the second time since the onset of the COVID-19 pandemic and plans to close its more than half of its 400-plus U.S. stores as it seeks to drastically restructure its business to return to profitability.
The list of planned store closures include two locations in the Pittsburgh area: 3911 Washington Road in McMurray and 6401 Penn Ave. in Pittsburgh.
The Dallas-based discount retailer filed for bankruptcy in the Northern District of Texas on Tuesday, listing assets and liabilities of $100 million to $500 million, in its bankruptcy petition. It had emerged from its last bankruptcy in January 2021 after closing about 200 stores, cutting its employee head count and slashing debt.
But the company soon found itself in trouble again, battling inflation and supply chain bottlenecks. It recently added BDO USA as a restructuring adviser, Bloomberg reported last month. That came after an investor group led by Retail Ecommerce Ventures — which owns brands such as Pier 1 Imports and Modell’s Sporting Goods — and existing management provided a $35 million financial lifeline in September.
Tuesday Morning said it plans to cut unprofitable stores and significantly cut costs during the restructuring process. The company secured $51.5 million of financing from
Invictus Global Management to fund itself through bankruptcy.
The retail sector is reeling from a disappointing holiday season as inflation and rising interest rates dampen consumer spending. Party City, a U.S. specialty retailer that struggled to rebound after sales plummeted during the pandemic, sought bankruptcy protection in January. Bed Bath & Beyond only managed to avert bankruptcy with a last-gasp $1 billion deal last week.
Founded in 1974, Tuesday Morning operates 490 stores and specializes in home goods, furnishings and related products. As of June 30, 2021, it employed 1,607 people full time, and 4,692 part time. The company also moved to delist its stock in late December.