The keys are handed over to four Arkansas stores, while two more get an extension.
A 'retail apocalypse' has been sweeping the United States, causing bankruptcies and retail stores to close nationwide. One of those businesses is discount retailer Tuesday Morning, which earlier this year filed for bankruptcy.
I promised to keep readers updated with new developments, and now further news has come to hand.
First, a quick recap.
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
Last 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."
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 Arkansas ended
Four former Tuesday Morning stores in Arkansas appeared on the list of 56 rejected leases.
- 7810 Rogers Ave. in Fort Smith
- 2701 E. Race Ave. in Searcy
- 4332 Central Ave. in Hot Springs
- 2516 Cantrell Road in Little Rock.
Currently, two Tuesday Morning stores in Arkansas remain open and are holding liquidation sales.
- 204 South Rockwood Drive, Rockwood Plaza, Cabot, AR 72023
- 2008 S Caraway Road, Highland Square, Jonesboro, AR 72401
At this stage, these two stores will remain open. Judge Morris approved a motion extending the deadline for Tuesday Morning to assume or reject its remaining retail leases to July 14.
Do these store closures affect you? Are you concerned about the number of stores closing across the nation? 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.