Tuesday Morning, a leading off-price retailer of home goods and décor, announced on February 14, 2023, that it has filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division.
- The Dallas-based company, which opened its first store in 1974, plans to close more than half of its 487 stores across 40 states.
- Among the affected locations is the Tuesday Morning store in Destin, Florida, situated at 4489 E Commons Drive West.
As part of the ongoing bankruptcy proceedings, Tuesday Morning secured a $51.5 million debtor-in-possession (DIP) financing commitment from Invictus Global Management, LLC. This financing, pending approval by the Bankruptcy Court, will support the company’s operations during the restructuring process.
According to the filing, the decision to file for bankruptcy comes as the company aims to reduce its outstanding liabilities, obtain significant capital, and transform into a more agile retailer that profitably serves its heritage markets.
Andrew Berger, CEO and Director of Tuesday Morning Corp., stated, “After considering how best to address Tuesday Morning’s exceedingly burdensome debt, we have determined that the best path to reorganizing and transforming the Company begins with a Chapter 11 filing.”
- Berger expressed confidence in the company’s vision for transformation, with the support of Invictus as a committed capital provider. He added, “We look forward to taking steps that enable us to emerge as a stronger retailer that draws on a legacy of offering a unique off-price value proposition to our loyal customer base.”
During the restructuring process, Tuesday Morning plans to “optimize its store footprint, focusing on core and heritage markets.” According to the company, they intend to close stores in low-traffic regions while allocating resources to the remaining stores in high-traffic areas.
- The Destin location is among the 24 Florida stores slated for closure, with a store closing sale currently underway, according to the company’s website.