Tuesday Morning files for bankruptcy

Retailer with 490 stores seeks protection for 2nd time since covid began

Discount retailer Tuesday Morning has filed for bankruptcy protection for the second time since the onset of covid-19.

The Dallas-based company filed in the Northern District of Texas, listing assets and liabilities of $100 million to $500 million in its bankruptcy petition. Tuesday Morning 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 trouble again, now battling inflation and supply chain bottlenecks. It recently added BDO USA as a restructuring adviser, Bloomberg News 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. Bed Bath & Beyond plans to close its stores in Hot Springs and Fort Smith in addition to a store in North Little Rock.

Founded in 1974, Tuesday Morning operates 490 stores and specializes in home goods, furnishings and related products. The retailer operates two stores in the Little Rock area, as well as locations in Cabot, Benton and Hot Springs, according to its website. As of June 30, 2021, the company reported employing 1,607 full-time staff, and 4,692 part-time workers. The company also moved in late December to delist its public stock offering.

A Tuesday Morning retail store stands in Baileys Crossroads, Virginia. Tuesday Morning Corp. filed for Chapter 11 last month in the latest example of a retailer going under amid covid-19 shutdowns. (Bloomberg News WPNS/Andrew Harrer)