Tuesday Morning files 2nd bankruptcy in 3 years, will close hundreds of stores, including in the North Bay
For the second time in three years, discount home-goods retailer Tuesday Morning has filed for bankruptcy and is now preparing to close more than half of its remaining U.S. stores, including two in the North Bay.
On Tuesday the company filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth division, according to its press release. Invictus Global Management has agreed to provide $51.5 million in loans to carry the company through Chapter 11, subject to approval of the bankruptcy court.
“After considering how best to address Tuesday Morning’s exceedingly burdensome debt, we have determined that the best path to reorganizing and transforming the company begins with a Chapter 11 filing,” Andrew Berger, CEO and director, stated in the release. “We look forward to taking steps that enable us to emerge as a stronger retailer that draws on a legacy of offering a unique off-price value proposition to our loyal customer base.”
The Dallas, Texas-based retailer stated it plans to close more than half of its remaining 487 stores in 40 states. The Petaluma and Novato locations are the North Bay stores among the 31 locations that will close in California. The company’s Santa Rosa store is already closed.
A spokesman for Tuesday Morning declined to state when the North Bay stores will close, but the Petaluma store is expected to shutter by March 31 or sooner if the merchandise sells out before then, a store employee who wished to remain anonymous told the Business Journal.
“I am really sad about this,” said Petaluma resident Margie Bernard, as she filled her cart with throw pillows and blankets at the North McDowell Boulevard store on Feb. 16. “This is my secret spot. This is where I get all my gifts. This is where I hide from my husband. I will miss it.”
Established in 1974, Tuesday Morning sells name-brand products for the home, including textiles, furnishings, housewares, gourmet food, toys and seasonal decor. Competitors in the market include Marshall’s, Home Goods and TJ Maxx, whose parent company is TJX; and Ross and Burlington.
Tuesday Morning in its bankruptcy announcement stated, “this targeted approach to winding down unprofitable and underperforming stores will position Tuesday Morning to emerge from bankruptcy with a profitable, cash-generating store fleet that serves its most engaged and loyal customers.”
Tuesday Morning initially filed for Chapter 11 bankruptcy in May 2020, announcing plans to pursue financial and operational reorganization as a result of the “immense strain” the pandemic put on the business. The retailer stated it had secured a commitment for $100 million in debtor in possession financing. At the time, the company had nearly 700 stores and closed roughly 230 of them.
In December, Tuesday Morning announced it was voluntarily delisting from the Nasdaq Capital Market. A month earlier, the company announced several leadership changes, including the appointment of Berger as CEO following Fred Hand’s retirement.
Tuesday Morning’s Petaluma store is located at 1355 North McDowell Blvd.; its Novato store is at 191 San Marin Drive.
