Tuesday Morning Stores BANKRUPTCY!? Another in the Retail Apocalypse
The Wall Street Journal reported that off-price retailer Tuesday Morning is preparing bankruptcy filing as soon as this weekend. Will your local store be on the list of closings? Certainly, the shutdown of stores due to the coronavirus pandemic has hit retailers hard in 2020. In other words, retailers that were already struggling before the coronavirus pandemic are beginning to crumble as the crisis raises the threat of store closings.
While no formal decisions have been made as to the fate of Tuesday Morning stores, they have held initial talks with lenders about a bankruptcy loan that would keep the company running while it works out a recovery plan, according to Bloomberg Law. A Chapter 11 Bankruptcy would allow the company to hopefully avoid a permanent shutdown.
The Dallas-based company, which has roughly 700 discount stores across the U.S., is planning to seek chapter 11 protection in Texas as early as this weekend after a debt default and the temporary store closures in late March. The off-price retailer is preparing to try to sell its business out of bankruptcy, according to WSJ.
More Bad News for Retail Stores
With the COVID-19 Coronavirus pandemic quarantine, retail stores have closed their doors temporarily. Because of this, many stores are struggling to stay in business. And, some will not make it. Therefore, we expect to see many more stores shutter their brick & mortar stores in the future.
This Tuesday Morning news comes on the heels ofretail giants such as J.C. Penney declared bankruptcy and plans to close 200 stores, And, Victoria’s Secret and Bath & Body Works announced they were closing 300 stores. Gordmans bankruptcy and store closings. And, of course, Pier One Imports closing all of their stores. Shortly after Neiman Marcus, another department store giant, declared Chapter 11 bankruptcy amid the coronavirus pandemic.
What This Means for Consumers
We’ll keep you updated; because, this is a developing story. Our thoughts and prayers are with the employees who could be affected by stores closing as well as the people who rely on these stores for shopping.
In some cases if locations close permanently, there could still be online options to shop. However, if all stores close, then things like store credit, gift cards and returns must be done in a timely manner. And, it could also mean store closing clearance sales. So, stay tuned to this developing story for the information you need.