A discount home goods retailer is closing the majority of its stores in California — and more than half of its locations nationwide — after filing for Chapter 11 bankruptcy protection last week.
It’s the second time Tuesday Morning has filed for bankruptcy protection in three years. Challenges from the pandemic including temporary closures and employee furloughs forced the Dallas-headquartered company to shutter more than 200 of its nearly 700 stores in 2020.
In a statement released Tuesday, CEO Andrew Berger said the company is still facing an “exceedingly burdensome debt” and needs to restructure and optimize its store footprint to retain a viable business. According to the company’s website, 263 of Tuesday Morning’s approximately 490 locations “in low-traffic regions” are slated for closure; 31 out of 37 stores in California are now expected to shutter.
Pending closures in the Bay Area include locations at Redwood Gateway in Petaluma, at San Marin Plaza in Novato and on Blossom Hill Road in San Jose. Other stores slated for closure statewide include those in Glendora, Clovis, Rancho Cucamonga, Redlands, Redding, Riverside, Fountain Valley, San Diego, Granada Hills, Carlsbad, Modesto, La Verne, Woodland Hills, Torrance, Camarillo, Chico, Palm Desert, Ventura, Citrus Heights, Lakewood, Bakersfield, Roseville, Folsom, Orange, Santa Monica and El Cajon.
“The Company believes 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,” the statement from Tuesday Morning read.
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It’s not clear when the closures will roll out (SFGATE reached out to a spokesperson for Tuesday Morning for more information and did not hear back by the time of publication). In the meantime, expect liquidation sales and closeout discounts as the stores work to clear their shelves.
The statement noted the company has also secured $51 million in financing from investment firm Invictus Global Management to support operations as it continues to downsize.
“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,” Berger said.
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February 20, 2023 at 03:22AM
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Discount home goods retailer to close most of its Calif. stores - SFGATE
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