Bankrupt Retailer Expected to Vacate Texas Headquarters Next Week Amid Retail Leases Being Rejected.

Ash Jurberg

Texan discount retailer Tuesday Morning is set to close its headquarters and reject several retail leases as soon as Wednesday.

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The end may come in days for several Tuesday Morning stores in Texas.

Last month I advised readers that struggling discount retailer Tuesday Morning, based in Dallas, would cease operations and promised to update readers on future developments.

This week there has been some further news, so let's take a quick look

Tuesday Troubled Timeline

Tuesday Morning is a household merchandise discount store popular with shoppers looking for prices below department stores.

At its peak in 2018, the company operated over 700 locations and had sales of over $1 billion. Sadly the news hasn't been as good in the last few years. Last November, the "company announced that same-store sales were down 10.4 percent compared with the same fiscal quarter last year, and net sales dropped to $157.1 million this quarter, down from $176.9 million a year prior."

Then, in February, it filed for bankruptcy for the second time in three years. At the time of the filing, it announced it would close over half of its stores but still keep 200 stores open.

In April, Judge Edward L. Morris of the U.S. Bankruptcy Court for the Northern District of Texas approved the sale of the retailer known as Tuesday Morning to a liquidation company Hilco.

Hilco has the rights to Tuesday Morning's retail leases where they are conducting going out of business sales.

An extension

Yesterday, an emergency hearing was held in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth division.

According to a report, the business is "expected to hand back the keys to its North Texas distribution center, which is attached to one of its stores, as well as its Dallas headquarters and more than 50 stores by the end of Wednesday."

The report states Tuesday Morning advised "the court it planned to abandon all the remaining inventory, furniture, fixtures, equipment, and other personal property" at those locations.

At this stage, the remainder of the Tuesday Morning retail stores will remain open as Judge Morris approved a motion extending the deadline by which Tuesday Morning can assume or reject its remaining retail leases of about 144 stores from June 14 to July 14.

The stores listed below were on the list of 56 rejected leases provided to the court. These stores have all recently closed.

  • 24427 Katy Freeway, Katy
  • 401 W. Interstate 30, Garland
  • 17937 Interstate 45 S, Shenandoah
  • 3150 Pat Booker Road, Universal City
  • 2325 S. Stemmons Freeway, Lewisville
  • 2315 Richmond Road, Texarkana
  • 2727 61st St, Galveston
  • 6808 Huebner Road, San Antonio
  • 870 S. Mason Road, Katy
  • 4610 N. Garfield, Midland
  • 410 Padre Blvd, South Padre Island
  • 3301 S. 14th St, Abilene
  • 2737 W. Park Row Road, Arlington

Your thoughts

Do these store closures affect you? Are you concerned about the number of stores closing in Texas and the loss of jobs? Should the government offer more financial support for struggling retail businesses? Do you fear we could be heading towards a recession?

Please leave your thoughts in the comment section below and share this article on social media so more people can join the discussion.

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