Discount home décor retailer struggles to stay in business
Waxahachie’s Tuesday Morning location faces an uncertain future as the Dallas-based discount home décor retailer filed for bankruptcy protection today.
After closing all of its stores in response to the COVID-19 pandemic, the chain suffered prolonged financial loss, which has driven the reorganization move, the company says in a news release. As part of the reorganization, the chain will permanently close about 230 of its 687 stores, leaving just around 450 stores.
Those stores slated for closing are either poorly performing or in areas where too many Tuesday Morning stores have been located. The company has not yet released a list of the stores that it plans on closing, leaving the future of the Waxahachie location up in the air.
Following the closure of the entire store portfolio as a result of COVID-19, Tuesday Morning has re-opened over 80% of its existing store footprint as of today and expects to continue store reopenings and bringing associates back to work over the coming weeks.
“We plan to emerge from Chapter 11 in a stronger position as a leading home goods off-price retailer, providing unmatched value to our customers. The commitment from our lenders to provide access to significant capital demonstrates faith in our value-driven business model and iconic brand. Looking ahead, we’ve been encouraged by very positive performance of the business as we continue to reopen our doors and welcome back our dedicated customers,” says Tuesday Morning C.E.O. Steve Becker.
The bankruptcy comes just as the company says it has seen sales among the stores that have reopened rise 10% higher compared to one year ago.
Tuesday Morning Corporation is an off-price retailer specializing in name-brand products for the home, including home textiles, home furnishings, housewares, gourmet food, toys and seasonal décor. Based in Dallas, Texas, the company opened its first store in 1974 and currently operates 687 stores in 39 states.
UPDATE: In the hours since Tuesday Morning announced its bankruptcy plans, court documents show that the Waxahachie location will not be among the first 132 stores to be closed. However, more stores will be added to the list of closings as the company restructures in the coming months. Waxahachie 360 will update this post as more stores are announced.