Tuesday Morning Again Files for Chapter 11 Bankruptcy

Tuesday Morning Corp. (Dallas), an off-price retailer of home goods and décor, has filed voluntary petitions for a Chapter 11 bankruptcy. As part of those proceedings, the company said it plans to close an as-yet-undisclosed number of stores.

This is the chain’s second bankruptcy filing. In May 2020, Tuesday Morning closed about 200 stores as part of a reorganization. It exited bankruptcy the next year, but has continued to struggle.

As part of its latest foray in Chapter 11, Tuesday Morning also said it has obtained a commitment from Invictus Global Management LLC to provide $51.5 million in debtor-in-possession financing to support its ongoing operations during the proceedings. That financing is subject to approval of the bankruptcy court involved with the filing.

“After considering how best to address Tuesday Morning’s exceedingly burdensome debt, we have determined that the best path to reorganizing and transforming the company begins with a Chapter 11 filing,” CEO Andrew Berger said in a news release. “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. “

As part of the restructuring, Tuesday Morning said it plans to focus on optimizing its store footprint and focusing on its core and heritage markets.

“The company intends to close stores in low-traffic regions while allocating the proper resources to remaining stores in high-traffic regions,” its news release stated. “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 did not reveal the number of stores to shuttered. The company opened its first store in 1974 and currently operates 487 stores in 40 states.