Bankrupt retailer hands back the keys to four Tennessee locations as leases are rejected
A 'retail apocalypse' has been sweeping the United States, causing bankruptcies and retail stores to close nationwide.
One retailer that has been impacted is struggling discount retailer Tuesday Morning.
This week there has been some further news that will affect several locations in Tennessee, so 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 with over $1 billion in sales. 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, but the end is in sight for some.
Handing back the keys
Yesterday, 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."
Tuesday Morning advised "the court it planned to abandon all the remaining inventory, furniture, fixtures, equipment, and other personal property" at those locations.
Leases in Tennessee
Four former Tuesday Morning stores appeared on the list of 56 rejected leases.
- 1951 Madison St, Clarksville
- 1250 NW Broad St, Murfreesboro
- 820 25th St. NW, Cleveland
- 632 W. Poplar Ave, Collierville
There are currently ten Tuesday Morning stores in Tennessee. 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. still open
Do these store closures affect you? Are you concerned about the number of stores closing in Tennessee 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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