Discount retailer Tuesday Morning filed for Chapter 11 bankruptcy protection on Wednesday and will shut down about 230 stores across the United States, following similar filings from other nationwide retailers during the CCP virus pandemic.
The Dallas-based company joins a growing list of companies that have gone bankrupt during the outbreak, including JCPenney, Stage Stores, J.Crew, and Neiman Marcus. Other retailers such as Victoria’s Secret and Bath & Body Works have been forced to shut down locations.
He added: “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.”
The firm said in a press release it is planning to emerge from Chapter 11 in early fall 2020.
“We plan to emerge from Chapter 11 in a stronger position as a leading home goods off-price retailer, providing unmatched value to our customers. The commitment from our lenders to provide access to significant capital demonstrates faith in our value-driven business model and iconic brand. Looking ahead, we’ve been encouraged by very positive performance of the business as we continue to re-open our doors and welcome back our dedicated customers,” Becker said.
In addition, the company said it secured $100 million from its lenders to help it through bankruptcy.
More retail bankruptcies are expected to be on the way as a number of businesses’ sales have plummeted during the outbreak after stores were forced to shutter and people remaining at home.
Last week, a court ruled that JCPenney can keep paying staff and vendors after it filed for Chapter 11 bankruptcy on May 15.
