Off-price discounter Tuesday Morning said it plans to exit bankruptcy by early December behind a plan to permanently close 230 of its 687 stores, including two in central Arkansas (Conway and Little Rock) that were shuttered in July.
Tuesday Morning still operates 10 Arkansas locations including stores in Fayetteville, Fort Smith, Jonesboro, North Little Rock and Rogers. The company said it would run about 440 stores post-bankruptcy and it will emerge stronger.
“The prolonged and unexpected closures of our stores in response to COVID-19 has had severe consequences on our business,” Steve Becker, CEO, said in May. “Prior to the pandemic, we were gaining momentum in our merchant organization, growing our vendor base and improving brands, assortment and value for our customers, while investing in our technology and corporate leadership team. However, the complete halt of store operations for two months put the company in a financial position that can only be effectively addressed only through a reorganization in Chapter 11.”
The Dallas-based retailer filed its reorganization plan with the bankruptcy court last week that includes the sale of its north Dallas headquarters and two warehouse facilities in the Dallas-area for $60 million. This should allow the retailer to pay its vendors.
Tuesday Morning execs said the company plans to lease back the space it sold and remain headquartered in Dallas. A credit facility with lenders also provides $110 million in liquidity for exiting bankruptcy. The company also expects to raise $40 million by the insurance of rights to purchase shares that have continued to trade during the bankruptcy proceedings.
The company reported quarterly sales ending Sept. 30 of $161.54 million, down from $224.43 million in the prior-year period. The company also doubled its operating loss in the period to a deficit of $16.488 million, according to regulatory filings.