Tuesday Morning Another Retailer Files For Bankruptcy
Discount retailer Tuesday Morning has filed for Chapter 11 bankruptcy protection and is looking to shut more than 200 of its nearly 700 stores.
First, the Dallas-headquartered company is seeking court approval to shut at least 132 stores, which it says are either underperforming or are located in areas where another store is closeby. (Those addresses are listed below, based on a court filing.) It is also planning to shut its distribution center in Phoenix that supports these locations.
Tuesday Morning said it expects the closures to take place over the summer.
Meantime, the company said it ultimately plans to close another 100 stores in addition to the 132, leaving it with about 450 locations when it exits Chapter 11 in early fall. That is, if everything goes as planned.
The closures by Tuesday Morning add to a glut of retail real estate that is going dark, permanently, amid the coronavirus pandemic. The Covid-19 crisis forced many retailers’ stores to shut temporarily. But now, some are being forced shut permanently, as businesses grapple with how to keep running a company with fewer sales.
J.C. Penney, which filed for bankruptcy earlier this month, is planning to close about 240 stores as part of its restructuring. Pier 1 Imports, which had filed for bankruptcy before the pandemic in February, is planning to liquidate its remaining stores after it could not find a buyer. L Brands is planning to close 250 Victoria’s Secret stores in 2020.
“You now have Pier 1 and Tuesday Morning,” closing hundreds of stores altogether, said Bill Read, executive vice president at commercial real estate services firm Retail Specialists.
“But one of the oldest tricks in the Chapter 11 game is to announce a large pool of store closings, but then to negotiate with landlords and end up with a smaller pool … because your receive better rental terms,” he said.