A popular discount retailer, Tuesday Morning, has filed for bankruptcy and plans to close more than 200 stores across 40 states.
The company's statement revealed that this will enable them to reduce their outstanding liabilities, obtain significant and necessary capital, and transform into a nimbler retailer that serves heritage markets in a profitable manner.
Reasons for Bankruptcy:
Tuesday Morning's bankruptcy can be traced back to the Covid-19 pandemic, which affected the retailer's operations, store traffic, financial position, and employee availability. In 2020, the chain closed all of its nearly 700 stores and remained closed for around three months before shutting down 200 stores and an Arizona distribution center for good. Despite receiving a huge $35 million investment from Retail Ecommerce Ventures in September 2022, the company was unable to recover.
Details of Store Closures:
The company has already requested the court to reject over 250 store leases and plans to close those stores down. The focus will be on closing stores that are underperforming to ensure that the remaining stores are highly trafficked, which will enable the company to exit bankruptcy with a profitable, cash-generating store fleet. Gordon Brothers, a store liquidator, has been hired to carry out the closings.
Impact on Employees:
Tuesday Morning had 487 stores across 40 states, with around 1,600 full-time employees and 4,700 part-time workers. The closures will have a significant impact on the employees, who will now be looking for alternative employment.
Conclusion:
The bankruptcy of Tuesday Morning and its decision to close more than 200 stores across 40 states is a clear indication of the impact that the Covid-19 pandemic has had on the retail industry. The decision to close underperforming stores and focus on highly trafficked stores is a prudent one, as it will enable the company to exit bankruptcy with a profitable, cash-generating store fleet. However, it remains to be seen how the closures will impact the employees who will be affected by this decision.
What Are Your Thoughts?
What are your thoughts on the impact of the Covid-19 pandemic on the retail industry? Have you ever been to Tuesday Morning? How was your experience? Do you think Tuesday Morning's decision to close underperforming stores and focus on highly trafficked stores is the right one? How do you think the closures will impact the employees who will be affected by this decision?
Share your thoughts and experiences in the comments below!
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