Tuesday Morning Is Closing Half of Its Stores After Filing for Bankruptcy
Approximately 263 locations in 38 states are on the chopping block.
When it comes to off-price retailers, there are few destinations more exciting than Tuesday Morning. You never know what you'll find there—each location's selection is different—and you can get some great deals if you know when to shop. (No, Tuesday mornings aren't your best options.) But you may want to head to your closest Tuesday Morning soon, because the Dallas-based retailer is closing a staggering half of its stores.
On Feb. 14, Tuesday Morning filed for Chapter 11 bankruptcy, marking the second time it's done so in the past three years. The retailer closed a handful of locations over the past few months, coinciding with news from Nov. 2022, when Tuesday Morning reported a 10.4 percent drop in sales compared with the year before. At the time, CEO Andrew Berger said that the results were "inline with expectations," based on the "challenging consumer environment." But now, Tuesday Morning is taking drastic measures to stay afloat, with plans to shutter over half of its 487 stores in 2023. Read on to find out if your local Tuesday Morning store is closing for good.
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The company currently has "exceedingly burdensome debt."
Berger said "exceedingly burdensome debt" fueled the company's decision to file for bankruptcy protection, according to a Feb. 14 press release. But executives are hopeful that Tuesday Morning will "emerge as a stronger retailer that draws on a legacy of offering a unique off-price value proposition to our loyal customer base."
In Dec. 2022, the company said it was seeking funding, later delisting its stock from Nasdaq in January, The Dallas Morning News reported. Per the filing made with the Fort Worth Division of the U.S. Bankruptcy Court for the Northern District of Texas, Tuesday Morning was able to secure $51.5 million in financing to keep operations up and running.
Now, however, it seems that serious cuts must be made.
Tuesday Morning is "winding down" underperforming locations.
Per the press release, Tuesday Morning isn't saying goodbye—in fact, the company is hoping to "emerge from bankruptcy with a profitable, cash-generating store fleet that serves its most engaged and loyal customers."
To do so, Tuesday Morning is optimizing its brick-and-mortar store footprint, the press release states. Closing stores are located "in low-traffic regions," and once they're closed, resources will be reallocated to stores in "high-traffic regions."
In another effort to cut costs, Tuesday Morning will switch to a third-party logistics model, meaning it will enlist another company to oversee its inventory, warehousing, and shipments to customers.
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There will be closures in 38 states.
Currently, Tuesday Morning has stores in 40 states, and 38 of these states will see closures. The retailer published a list of 263 stores closing in 2023, adding that everything at these stores will be on sale, allowing you to "save big on our original low prices."
California will be hit the hardest, losing a total of 31 Tuesday Morning stores this year, followed closely by Florida and Texas, both of which will say goodbye to 24 Tuesday Morning stores each. Seventeen stores are closing in North Carolina, 16 in Colorado, and 12 in both Virginia and Georgia.
The Feb. 14 press release doesn't note when closures will begin, nor does Tuesday Morning's website. Best Life reached out to Tuesday Morning for comment on the closures, but has yet to hear back.
These aren't the first Tuesday Morning closures.
While the latest closures are certainly substantial, Tuesday Morning did close a few other locations over the past several months.
A store in the Natomas neighborhood of Sacramento, California, permanently closed in Dec. 2022, the Sacramento Business Journal reported. Three additional Tuesday morning locations were shuttered as well, including one in Dallas on Luther Lane; one in Meridian, Mississippi; and another in Clarksville, Indiana. According to The News and Tribune, the Clarksville location's lease expired on Jan. 31, 2023.
All four stores are now listed as "permanently closed" on Google.