Tuesday Morning becomes 5th big retailer to file Chapter 11; 230 stores to close

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 company's CEO, Steve Becker, blamed the company's misfortune on the coronavirus closures.

“The prolonged and unexpected closures of our stores in response to COVID-19 has had severe consequences on our business," he said. "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.”

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.

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