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Tuesday Morning becomes 5th big retailer to file Chapter 11

Tuesday Morning becomes 5th big retailer to file Chapter 11
Posted at 8:02 AM, May 27, 2020
and last updated 2020-05-27 11:03:46-04

NEW YORK (AP) — Discount goods retailer Tuesday Morning has filed for Chapter 11 bankruptcy protection, the fifth major retailer to do so since the pandemic.

As part of the bankruptcy reorganization, the Dallas-based chain said Wednesday it plans to close approximately 230 of its 687 stores over the summer to focus on high-performing locations and will do so with a phased approach.

"The prolonged and unexpected closures of our stores in response to COVID-19 has had severe consequences on our business," said Chief Executive Officer Steve Becker in a press release . "Before 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."

Tuesday Morning joins J.C. Penney, luxury department store chain Neiman Marcus, J.Crew, and Stage Stores in filing for Chapter 11 since the pandemic that forced many stores selling non-essential goods to close resulting in evaporating sales.

The company has asked that the court approve the closing of at least 132 locations in the first phase and, eventually, the distribution center in Phoenix, which supports the 132 stores.