(Bloomberg)—Tuesday Morning Corp. filed for bankruptcy protection for the second time since the onset of the Covid-19 pandemic.
The Dallas-based discount retailer filed in the Northern District of Texas, listing assets and liabilities of $100 million to $500 million, in its bankruptcy petition. It emerged from its last bankruptcy in January 2021 after closing about 200 stores, cutting its employee headcount and slashing debt.
But the company soon found itself in trouble again, battling inflation and supply chain bottlenecks. It recently added BDO USA as a restructuring adviser, Bloomberg News reported last month. That came after an investor group led by Retail Ecommerce Ventures — which owns brands such as Pier 1 Imports and Modell’s Sporting Goods — and existing management provided a $35 million financial lifeline in September.
Tuesday Morning said it plans to cut unprofitable stores and significantly cut costs during the restructuring process. The company secured $51.5 million of financing from Invictus Global Management to fund itself through bankruptcy.
The retail sector is reeling from a disappointing holiday season as inflation and rising interest rates dampen consumer spending. Party City Holdco Inc., a US specialty retailer that struggled to rebound after sales plummeted during the pandemic, sought bankruptcy protection in January. Bed Bath & Beyond Inc. only managed to avert bankruptcy with a last-gasp $1 billion deal last week.
Founded in 1974, Tuesday Morning operates 490 stores and specializes in home goods, furnishings and related products. As of June 30, 2021, it employed 1,607 people full‑time, and 4,692 part-time staffers. The company also moved to delist its stock in late December.
–With assistance from Ayai Tomisawa and Allan Lopez.
© 2023 Bloomberg L.P.
