A discount housewares retailer is closing the majority of its stores in California — and more than half of its locations nationwide — after filing for Chapter 11 bankruptcy protection last week.
It’s the second time in three years that Tuesday Morning has filed for bankruptcy protection. Challenges from the pandemic, including temporary shutdowns and employee furloughs, forced the Dallas-headquartered company to close more than 200 of its nearly 700 stores in 2020.
In a statement released on Tuesday, CEO Andrew Berger said the company still faces “extremely onerous debt” and needs to restructure and streamline its store presence to maintain a viable business. According to the company’s website, 263 of Tuesday Morning’s approximately 490 locations will be closed “in low-traffic areas”; 31 out of 37 stores in California are expected to close.
Upcoming Bay Area closures include locations at Redwood Gateway in Petaluma, San Marin Plaza in Novato, and Blossom Hill Road in San Jose. Other stores scheduled to close nationwide are those in Glendora, Clovis, Rancho Cucamonga, Redlands, Redding, Riverside, Fountain Valley, San Diego, Granada Hills, Carlsbad, Modesto, La Verne, Woodland Hills, Torrance, Camarillo, Chico, Palm Desert, Ventura, Citrus Heights, Lakewood, Bakersfield, Roseville, Folsom, Orange, Santa Monica and El Cajon.
“The company believes this focused approach to liquidating unprofitable and underperforming stores will enable Tuesday Morning to emerge from bankruptcy with a profitable, cash-generating fleet of stores serving its most engaged and loyal customers,” the statement said Statement from Tuesday Morning.
It’s not clear when the closures will be implemented (SFGATE reached out to a spokesperson Tuesday morning for more information and has had no response at the time of publication). In the meantime, expect liquidation sales and clearance discounts as stores work to clear their shelves.
The statement said the company has also secured $51 million in funding from investment firm Invictus Global Management to help the operation continue to downsize.
“We look forward to taking steps that will allow us to emerge as a stronger retailer, built on a legacy of delivering unrivaled value for our loyal customer base,” said Berger.