Tuesday Morning latest retailer to file for Chapter 11 bankruptcy protection
Discount retailer Tuesday Morning has filed for Chapter 11 bankruptcy protection, and plans on closing 230 of its 687 stores by the end of summer.
CEO Steve Becker said in a statement on Wednesday that before the coronavirus pandemic, the company was gaining momentum, but "the prolonged and unexpected closures of our stores in response to COVID-19 has had severe consequences on our business. 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."
As part of its restructuring plans, Tuesday Morning is looking to close stores that are underperforming or in a saturated market. The company temporarily shuttered its stores on March 26 because of the pandemic, and said more than 80 percent of all locations have since reopened. During its last fiscal year, Tuesday Morning generated about $1 billion in sales, CBS News reports. In recent weeks, J.C. Penney, J.Crew, and Neiman Marcus have also filed for Chapter 11.
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