Tuesday Morning Again Files For Chapter 11 Bankruptcy Protection
(RTTNews) - Off-price retailer Tuesday Morning Corp. (TUES), which emerged from bankruptcy in April 2021, announced Tuesday that it has again filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division.
The company said it is pursuing a financial and operational reorganization to enable the Company to reduce its outstanding liabilities, obtain significant and necessary capital, and ultimately transform into a nimbler retailer that serves heritage markets in a profitable manner.
The Company has also obtained a commitment from Invictus Global Management, LLC to provide $51.5 million of debtor-in-possession financing to support ongoing operations during the proceedings. The DIP financing is subject to approval of the Bankruptcy Court.
During the restructuring process, Tuesday Morning plans to focus on optimizing its store footprint and focusing on its core and heritage markets. The Company intends to close stores in low-traffic regions while allocating the proper resources to remaining stores in high-traffic regions.
The Company believes these actions will position it to emerge from bankruptcy with a profitable, cash-generating store fleet that serves its most engaged and loyal customers.
In addition, Tuesday Morning plans to realize significant cost reductions and new efficiencies across its distribution channels as a result of focusing on a narrower set of high-performing stores.
The Company expects to pivot to a third-party logistics, or 3PL, model and transition to a more cost-effective inventory acquisition strategy for remaining stores.
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