Tuesday Morning

lection of merchandise, they do demand that the range is reasonably coherent and contains interesting finds,” said Neil Saunders, managing director of Global Data Retail. “Unfortunately, Tuesday Morning often fails to deliver this. Many stores are not so much an Aladdin’s cave of exciting treasures as a jumbled flea market of whatever buyers could seemingly get their hands on.”

Tuesday Morning has requested bankruptcy court approval to close at least 132 locations in a first phase and, eventually, the company’s distribution center in Phoenix that supports these stores. These stores were identified as under-performing or are situated in areas where too many locations are in close proximity.

Tuesday Morning, which generated about a billion dollars in annual sales in its latest fiscal year, also plans to renegotiate a significant number of leases during this process. Of the remaining 555 stores, the company plans to exit approximately 100 additional locations leaving a network of roughly 450 stores.

“The prolonged and unexpected closures of our stores in response to COVID-19 has had severe consequences on our business,” said Steve Becker, chief executive officer at Tuesday Morning, in a statement.

Becker noted that prior to the pandemic, it was gaining momentum in its merchant organization, growing its supplier base and improving brands, assortment and value for its customers, while investing in its technology and corporate leadership team.

“The complete halt of store operations for two months put the company in a financial position that can be effectively addressed only through a reorganization in Chapter 11,” he added.

Tuesday Morning said it has re-opened over 80% of its existing store footprint to date and expects to continue store re-openings and bringing employees back to work over the coming weeks.

Tuesday Morning said that it has a commitment from its existing lender group to provide $100 million in financing to keep it operating during the bankruptcy process.