Tuesday Morning has filed for Chapter 11 bankruptcy protection, becoming the latest retailer to do so since the coronavirus pandemic impacted businesses across America.
“The prolonged and unexpected closures of our stores in response to COVID-19 has had severe consequences on our business,” CEO Steve Becker said in a statement. “Prior to the pandemic, we were gaining momentum in our merchant organization, growing our vendor base and improving brands, assortment and value for our customers, while investing in our technology and corporate leadership team. However, 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.”
In wake of the bankruptcy filing, the retailer is looking to close 200 of its nearly 700 locations. CNBC reported the company is first seeking court approval to shutter at least 130 stores it says are underperforming or are near other locations.
»COMPLETE COVERAGE: CORONAVIRUS
The company said it ultimately plans to close at least another 100 stores, which, if things go as planned, would leave it with about 450 locations when it comes out of Chapter 11 bankruptcy in the fall.
“We plan to emerge from Chapter 11 in a stronger position as a leading home goods off-price retailer, providing unmatched value to our customers,” Becker said. “The commitment from our lenders to provide access to significant capital demonstrates faith in our value-driven business model and iconic brand. Looking ahead, we’ve been encouraged by very positive performance of the business as we continue to re-open our doors and welcome back our dedicated customers.”
J.C. Penney, Neiman Marcus, J.Crew and Pier 1 have filed for Chapter 11 bankruptcy, CBS News reported.
»RELATED: Bath & Body Works closing 50 stores nationwide; Victoria's Secret closing 250
Some Georgia locations of Tuesday Morning set to close under the first wave include stores in Atlanta, Canton, Fayetteville, Norcross, Dunwoody, Columbus and McDonough. More locations are below.
About the Author
