Tuesday Morning Files for Chapter 11 Bankruptcy, Plans to Close Half of its Stores
Tuesday Morning Corp., a discount home goods retailer, has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division. The company, which currently operates 487 stores in 40 states and has around 1,600 full-time employees and 4,700 part-time workers, is seeking the financial and operational reorganization to reduce its outstanding liabilities, obtain capital and evolve into a “nimbler retailer that serves heritage markets in a profitable manner”, according to a company release.
Invictus Global Management, a Texas-based investment firm, has committed to provide $51.5 million of debtor-in-possession financing to support ongoing operations at Tuesday Morning during the proceedings, subject to approval of the bankruptcy court. The retailer has selected Munsch Hardt Kopf & Harr as legal advisor and Piper Sandler as financial advisor, with Vinson & Elkins advising Tuesday Morning's special committee.
The company is planning to close more than half of its 487 stores nationwide, including four stores in Fort Worth, Texas and other local closings happening in Bedford, Burleson, Garland, Granbury, Lewisville, Plano and Hurst. CEO Andrew Berger said in a statement that the move will “lay a foundation for a brighter future.”
Tuesday Morning previously emerged from Chapter 11 bankruptcy in 2021, funded through the net proceeds from a $70.25 million sale-leaseback of the company’s headquarters and warehouse facilities, a $110 million senior secured credit facility, proceeds from a $40 million equity rights offering and proceeds from a $25 million senior subordinated notes.
The company intends to close stores in low-traffic regions while allocating the proper resources to remaining stores in high-traffic regions. It is the Company's belief that by taking a focused strategy when closing down unprofitable and underperforming stores, Tuesday Morning will be able to come out of bankruptcy with a profitable, money-making store network that caters to its most devoted and faithful customers.
0. “Tuesday Morning files for bankruptcy – KION546” KION, 15 Feb. 2023, https://kion546.com/money/cnn-business-consumer/2023/02/15/tuesday-morning-files-for-bankruptcy/
1. “Tuesday Morning files for bankruptcy: List of store closures, including 10 in Alabama” AL.com, 15 Feb. 2023, https://www.al.com/news/2023/02/tuesday-morning-files-bankruptcy-list-of-store-closures-including-10-in-alabama.html
2. “Tuesday Morning files for Chapter 11 bankruptcy protection; store closures expected” WFAA.com, 14 Feb. 2023, https://www.wfaa.com/article/money/business/tuesday-morning-chapter-11-bankruptcy/287-5c4a0cb7-69bd-4dca-a4dd-57be90164df4
3. “Popular discount retailer to close 24 stores in Texas | Ash Jurberg” NewsBreak Original, 14 Feb. 2023, https://original.newsbreak.com/@ash-jurberg-560946/2925184061092-popular-discount-retailer-to-close-24-stores-in-texas
4. “Dallas-Based Tuesday Morning Files for Chapter 11 Bankruptcy Protection” dallasinnovates.com, 15 Feb. 2023, https://dallasinnovates.com/dallas-based-tuesday-morning-files-for-chapter-11-bankruptcy-protection
5. “Tuesday Morning, with 4 St. Louis locations, files bankruptcy” KSDK.com, 15 Feb. 2023, https://www.ksdk.com/article/news/local/business-journal/tuesday-morning-st-louis-bankruptcy/63-bf8a75f2-ef5a-44e9-86de-14c148ba349a
6. “Tuesday Morning Corp. Files Chapter 11 to Support Reorganization and Transformation – Tuesday Morning (OT” Benzinga, 14 Feb. 2023, https://www.benzinga.com/pressreleases/23/02/b30896538/tuesday-morning-corp-files-chapter-11-to-support-reorganization-and-transformation
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