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Discount homewares retailer Tuesday Morning has gone bankrupt again, a little over two years after it last emerged from restructuring.
The company listed assets and liabilities of $100M and $500M in its bankruptcy filing Tuesday morning in the U.S. Bankruptcy Court for the Northern District of Texas, Bloomberg reports. The firm, which had nearly 500 stores and more than 1,000 full-time employees and more than 4,000 part-time workers as of June 2021, said it looked to close unprofitable stores and further cut costs.
In its last bankruptcy, the company closed around 200 stores, reduced debt and lowered its employee headcount. However, supply chain snags and inflation have presented challenges for the company as it tries to regain its financial footing.
Last year ended poorly for retailers, with sales dropping 1.1% month-over-month amid soaring costs for consumers. Another big-box chain, Party City, filed for bankruptcy in January. Bed Bath & Beyond was approaching bankruptcy before securing $1B in financing to avoid a forced restructuring. An additional $100M credit from an existing lender, plus offering of convertible stock and warrants, prevented the filing, The Wall Street Journal reported last week.
The bankruptcies, unlike the wave that hit during the first year of the pandemic, are hitting a retail market that has largely recovered from its struggles. National retail vacancy hit a 15-year low in the fourth quarter, according to Cushman & Wakefield.
Tuesday Morning has enlisted BDO USA as restructuring adviser, per a January Bloomberg report, soon after a group led by Retail Ecommerce Ventures, which owns Modell’s Sporting Goods and other brands, joined with existing management to provide $35M in financing. Invictus Global Management has provided $51.5M to help the company fund itself through bankruptcy, according to the filing.
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