Tuesday Morning (Dallas, Texas) could find itself in bankruptcy again as losses mount at the discount chain.
CreditRiskMonitor lists the retailer among those with a 9.99% to 50% chance of bankruptcy, Retail Dive writes, also noting that S&P Global Market Intelligence has listed it among the most vulnerable retail companies.
After filing for Chapter 11 bankruptcy in May 2020, Tuesday Morning closed about 200 stores as part of its reorganization. It exited bankruptcy last year, but the chain continues to struggle with a smaller footprint.
In its most recent quarter, the company reported an 8% drop in same-store sales with an operating loss of $26.9 million – $10 million more than the same period from the prior year.
There’s hope on the horizon, though. The article mentions Tuesday Morning’s new deal with Retail Ecommerce Ventures — owner of Pier 1, Radioshack and Stein Mart – that secures $32 million in new debt to fund a move into e-commerce and omnichannel. The deal also gives Tuesday Morning the rights to sell products from the Pier 1 brand, which was acquired by Retail Ecommerce Ventures in 2020.
At its peak in 2018, Tuesday Morning operated 700-plus stores and had sales of more than $1 billion.
Read more at Retail Dive.