Tuesday Morning filed for bankruptcy Tuesday (Feb. 14).
The off-price retailer said in a Tuesday press release that it aims to reduce its “exceedingly burdensome” outstanding liabilities, obtain capital and “transform into a nimbler retailer that serves heritage markets in a profitable manner.”
“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,” Tuesday Morning CEO and Director Andrew Berger said in the release.
The company plans to close stores in low-traffic regions, allocate resources to those in high-traffic regions, pivot to a third-party logistics (3PL) model and pursue a more cost-effective inventory acquisition strategy, according to the release.
Tuesday Morning, which now has 487 stores in 40 states, filed for bankruptcy in May 2020 after having to close its retail locations due to the pandemic and running up against a deadline to pay back debts.
The company did not have an eCommerce presence, and it furloughed most of its 9,000 staffers in April 2020.
The firm emerged from bankruptcy six months later and then relisted on Nasdaq in May 2021.
“Our relisting on Nasdaq signifies the company’s recent financial and operational achievements as we continue to build a stronger company,” Tuesday Morning’s then-CEO Fred Hand said at the time.
Tuesday Morning has since struggled to meet the challenges of changing consumer tastes, inflation and the risings cost of distribution, The Wall Street Journal reported Tuesday.
The firm secured $32 million in financing in September, along with $3 million from its management team, the report said.
In the Tuesday press release announcing its second bankruptcy, Tuesday Morning said it has obtained $51.5 million of debtor-in-possession financing from Invictus Global Management, subject to the approval of the bankruptcy court, to support its ongoing operations.
“We look forward to playing an important role in reorganizing and transforming Tuesday Morning,” Invictus Partner Amit Patel said in the release. “As a Texas-based investment firm with strong roots in the state, we have long admired Tuesday Morning’s strong connection to customers seeking unique home goods at competitive prices.”
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