(Bloomberg)—Tuesday Morning Corp. filed for chapter safety for the second time for the reason that onset of the Covid-19 pandemic.
The Dallas-based low cost retailer filed within the Northern District of Texas, itemizing property and liabilities of $100 million to $500 million, in its chapter petition. It emerged from its final chapter in January 2021 after closing about 200 shops, slicing its worker headcount and slashing debt.
However the firm quickly discovered itself in bother once more, battling inflation and provide chain bottlenecks. It just lately added BDO USA as a restructuring adviser, Bloomberg Information reported final month. That got here after an investor group led by Retail Ecommerce Ventures — which owns manufacturers reminiscent of Pier 1 Imports and Modell’s Sporting Items — and current administration supplied a $35 million monetary lifeline in September.
Tuesday Morning stated it plans to chop unprofitable shops and considerably lower prices throughout the restructuring course of. The corporate secured $51.5 million of financing from Invictus International Administration to fund itself by means of chapter.
The retail sector is reeling from a disappointing vacation season as inflation and rising rates of interest dampen client spending. Social gathering Metropolis Holdco Inc., a US specialty retailer that struggled to rebound after gross sales plummeted throughout the pandemic, sought chapter safety in January. Mattress Tub & Past Inc. solely managed to avert chapter with a last-gasp $1 billion deal final week.
Based in 1974, Tuesday Morning operates 490 shops and makes a speciality of dwelling items, furnishings and associated merchandise. As of June 30, 2021, it employed 1,607 individuals full‑time, and 4,692 part-time staffers. The corporate additionally moved to delist its inventory in late December.
–With help from Ayai Tomisawa and Allan Lopez.
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