Area Tuesday Morning stores to close March 28

All 16 Tuesday Morning stores in Colorado — including outlets in Johnstown, Longmont and Fort Collins — will close by the end of this month, and their leases will be auctioned as part of the company’s Chapter 11 bankruptcy filing.

Dallas-based Tuesday Morning Corp. (OTC: TUEMQ) will close 263 of its 487 stores nationwide, the company said. The off-price retailer sells home goods and décor.

The stores at 4426 S. College Ave. in the Harmony Marketplace in Fort Collins, 4909 Thompson Parkway in the Johnstown Plaza and 1250 S. Hover St. in Village at the Peaks in Longmont are holding going-out-of-business sales and will close March 28, company spokespeople said.

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The corporation’s stock, which had a 52-week high of $42 per share and was selling for $11.30 at the end of August before a 1-for-30 reverse split of its common stock effective Nov. 30, was trading at slightly more than 9 cents a share by midafternoon Wednesday, after posting a 52-week low of 7.2 cents a share earlier in the day. Stocks in general were seeing a selloff on Wednesday amid the banking crisis, with the Dow Jones Industrial Average at one point down 551 points, or 1.7%.

According to a corporate statement, Tuesday Morning is “pursuing a financial and operational reorganization to enable the company to reduce its outstanding liabilities, obtain significant and necessary capital, and ultimately transform into a nimbler retailer that serves heritage markets in a profitable manner. To pursue its reorganization, Tuesday Morning has filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division.”

The company also obtained a commitment from Invictus Global Management, LLC, and its affiliates to provide $51.5 million of debtor-in-possession financing to support ongoing operations during the proceedings. This week, it obtained commitments of $12.5 million from 1903 Partners and its affiliate, Gordon Brothers. That financing is subject to approval of the bankruptcy court.

“After careful deliberation, we have determined that partnering with Gordon Brothers offers Tuesday Morning the best opportunity to save jobs, serve customers and maximize value for the estate,” Berger said. “Notably, this DIP clears the path for the company to continue transforming our operations through the bankruptcy process. In addition to providing liquidity, partnering with Gordon Brothers will allow us to leverage the team’s deep knowledge and experience in the retail sector.”

The retailer also announced that it had retained A&G Real Estate Partners to put 250 leases of the outlets it’s closing up for auction on an as-yet unspecified date, according to a report in Chain Store Age.

“After considering how best to address Tuesday Morning’s exceedingly burdensome debt, we have determined that the best path to reorganizing and transforming the company begins with a Chapter 11 filing,” Andrew Berger, Tuesday Morning Corp.’s CEO and director, said in a prepared statement. “Fortunately, we have the support of a committed capital provider in Invictus and a clear vision for transforming into a focused retailer that serves its core, 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. We appreciate all the support of our employees, customers, creditors and other partners as we seek to sustain commercial operations with minimal disruptions.”

During the restructuring process, Tuesday Morning said, it planned to “focus on optimizing its store footprint and focusing on its core and heritage markets” by closing stores in “low-traffic regions while allocating the proper resources to remaining stores in high-traffic regions. The company believes this targeted approach to winding down unprofitable and underperforming stores will position Tuesday Morning to emerge from bankruptcy with a profitable, cash-generating store fleet that serves its most engaged and loyal customers.”

Hurt by recent supply-chain issues, the company said it hoped to “transition to a more cost-effective inventory-acquisition strategy for remaining stores.”

The first Tuesday Morning store opened in 1974 in Dallas.

Court filings and other documents are available at https://cases.stretto.com/TuesdayMorning.