Dallas-based retailer Tuesday Morning has filed Chapter 11 bankruptcy protection Wednesday with plans to close more than a third of its stores.
The company joins a growing list of DFW retailers that have tumbled during the COVID-19 pandemic, including J.C. Penney and Neiman Marcus. Pier 1 Imports, which filed for Chapter 11 in February, is now liquidating its business.
In a company news release, Tuesday Morning said its actions were in response to the immense strain the COVID-19 pandemic and related store closures have put on the business.
The corporation plans to permanently close about 230 of its 687 stores this summer, including locations in Dallas, Richardson, Irving, Arlington, and Murphy, in a phased approach.
Stores selected to shutter were identified as under-performing or are situated in areas where too many locations are nearby.
Tuesday Morning also plans to renegotiate a significant number of leases during this process before announcing the next round of stores to close.
“The prolonged and unexpected closures of our stores in response to COVID-19 has had severe consequences on our business. 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,” said CEO Steve Becker.
“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, which generated about a billion dollars in annual sales in its latest fiscal year, hopes the bankruptcy and partial store closures will allow it to restructure its operations and ultimately stay in business, according to the release.
“We plan to emerge from Chapter 11 in a stronger position,” Becker said.
The company joins a growing list of DFW retailers that have tumbled during the COVID-19 pandemic, including J.C. Penney and Neiman Marcus. Pier 1 Imports, which filed for Chapter 11 in February, is now liquidating its business.
In a company news release, Tuesday Morning said its actions were in response to the immense strain the COVID-19 pandemic and related store closures have put on the business.
The corporation plans to permanently close about 230 of its 687 stores this summer, including locations in Dallas, Richardson, Irving, Arlington, and Murphy, in a phased approach.
Stores selected to shutter were identified as under-performing or are situated in areas where too many locations are nearby.
Tuesday Morning also plans to renegotiate a significant number of leases during this process before announcing the next round of stores to close.
“The prolonged and unexpected closures of our stores in response to COVID-19 has had severe consequences on our business. 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,” said CEO Steve Becker.
“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, which generated about a billion dollars in annual sales in its latest fiscal year, hopes the bankruptcy and partial store closures will allow it to restructure its operations and ultimately stay in business, according to the release.
“We plan to emerge from Chapter 11 in a stronger position,” Becker said.
Get the D CEO Newsletter
Stay up to speed on DFW’s fast-moving business community with weekly news reports, interviews, and insights.
