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Dallas – Tuesday Morning said “exceedingly burdensome debt” has forced it into Chapter 11.
The home goods-focused, off-price retailer made its filing today in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division. Court filings and other documents related to the court-supervised process are available at https://cases.stretto.com/TuesdayMorning
Fast facts about what the company plans now:
- Tuesday Morning has hammered out a deal with Invictus Global Management to provide $51.5 million of debtor-in-possession (DIP) financing. The funds will be used to support ongoing operations during the proceedings.
- The company said it aims to reduce its outstanding liabilities, obtain fresh capital and “transform into a nimbler retailer.” The chain currently consists of 487 stores in 40 states.
- The retailer plans to close stores in low-traffic regions to focus on high-volume locations. The filing and related press release did not disclose the number of closings planned.
- The Chapter 11 filing reports estimated assets of $100 million to $500 million and estimated liabilities of $100 million to $500 million.
“Fortunately, we have the support of a committed capital provider in Invictus and a clear vision for transforming into a focused retailer that serves its core, heritage markets in a profitable manner,” said Andrew Berger, Tuesday Morning’s CEO and director.
This is Tuesday Morning’s 2nd bankruptcy. It last entered bankruptcy in May 2020 and emerged in January 2021. At the time, it was backed by a $110 million asset-backed lending facility provided by J.P. Morgan, Wells Fargo and Bank of America and a pared-down store footprint that encompassed 490 of its best-performing stores.
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