The bankrupt retailer is handing back the keys to four locations in Florida, with sixteen others granted an extension.
The retail industry has been hit hard this year, with several retailers filing for bankruptcy.
One of those is struggling discount retailer Tuesday Morning, which announced it was closing operations and holding liquidation sales at its stores.
This week there has been some further news that will affect the leases of several stores in Florida.
Let's take a look at the ongoing story.
The Troubled Timeline of Tuesday Morning
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. The stores have remained open as they conduct liquidation sales.
Handing back the keys
On Thursday, an emergency hearing was held in front of Judge Morris.
According to a report, the business is "expected to hand back the keys to its distribution center, which is attached to one of its stores, as well as its 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.
Florida locations affected
Four Florida locations appeared on the list of 56 rejected leases. All locations had been closed already.
- 7928 Front Beach Road, Panama City Beach
- 911 Lithia Pinecrest Road, Brandon
- 99 Elgin Parkway NE, Fort Walton Beach
- 6050 N. Lockwood Ridge Road in Sarasota.
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.
There are currently sixteen Tuesday Morning stores in Florida, which will remain open for the time being as Hilco attempts to find a buyer or business to take over the leases.
Do these store closures affect you? Are you concerned about the number of stores closing in Florida and the loss of jobs? Will you visit one of these stores to find a bargain? Should the government offer more financial support for struggling retail businesses? Do you fear we could be heading towards a recession?
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