Discount home goods retailer Tuesday Morning has filed for Chapter 11 bankruptcy, saying it will close 263 underperforming stores, including 20 in Southern California and 31 statewide.
Local closures include stores in Glendora, Woodland Hills, Granada Hills, Torrance, La Verne, Lakewood, Santa Monica, Orange, Fountain Valley, Rancho Cucamonga, Riverside, Redlands and Palm Desert. Five in San Diego County and two in Ventura County also are closing.
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The first phase of closures will include about 130 stores and is set to begin this summer, according to CNN. The U.S. closures amount to half of the retailer’s 487 locations in 40 states.
In a Tuesday, Feb. 21 posting, the company on its website listed all of the closing stores with an “Everything on sale” banner.
This is Tuesday Morning’s second bankruptcy in three years. The Dallas-based retailer cited continuing fallout from temporary store closures related to the COVID-19 pandemic.
CEO Steve Becker said the business was doing well before the pandemic hit and necessitated the closures and employee furloughs — moves that had “severe consequences on our business.”
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“After considering how best to address Tuesday Morning’s exceedingly burdensome debt, we have determined that the best path to reorganizing and transforming the company begins with a Chapter 11 filing,” Becker said in a statement.
Becker said the company has secured $51.5 million in financing from Invictus Global Management to support ongoing operations during the bankruptcy proceedings.
“We look forward to playing an important role in reorganizing and transforming Tuesday Morning,” said Amit Patel, a partner with Invictus. “As a Texas-based investment firm with strong roots in the state, we have long admired Tuesday Morning’s strong connection to customers seeking unique home…
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