After filing for bankruptcy, the discount retailer has big plans for the future; find out if they will impact your city.
A few weeks after filing for bankruptcy, discount retailer Tuesday Morning made a shocking announcement: it would be closing hundreds of stores.
With the closure of 263 stores, the home goods retailer plans to auction off more than 250 leases across the country.
The failing discount retailer’s “overall lease portfolio strategy” was advised by A&G Real Estate Partners last week, and the firm announced it would be leading the auction.
Tuesday Morning, according to A&G senior managing director Todd Eyler, “is committed to optimize its store footprint and focus on its core markets” as part of the company’s restructuring.
Tuesday Morning will emerge from Chapter 11 with a profitable store fleet that serves its most engaged and loyal customers, according to the company’s new management team, who also believes that other measures being taken to improve operations will help.
Currently, 263 stores nationwide are closing.
Eyler, however, did warn that more stores could close “if certain acceptable terms are not reached with the landlords.”
Sizes of the auctioned properties range from 6,000 to 28,000 square feet.
Strip malls and free-standing buildings are two of the options.
Last week, A&G revealed that many of its stores had five years or more left on their leases, with some renewal options.
Eyler explained that the terms of these leases make it possible for ambitious retailers and other tenants to open for business in prime locations within three months.
There has apparently been some early interest in the properties on offer from the real estate firm; demand appears to be highest in markets like Dallas, Houston, Phoenix, and Tampa.
The total number of closed Tuesday Morning stores in each state is as follows:
Closures will affect major U.S. cities including Austin, Columbus, Raleigh, Las Vegas, San Diego, and Atlanta.
You can find the exact address of each Tuesday Morning store on their website.
In May 2020, a few months after Tuesday Morning’s initial Chapter 11 bankruptcy filing, A&G Real Estate Partners acted as a real estate advisor for the company.
To “enable the company to reduce its outstanding liabilities, obtain significant and necessary capital, and ultimately transform into a nimbler retailer that serves heritage markets in a profitable manner,” Tuesday Morning re-filed in February.
If a company files for Chapter 11 bankruptcy, it can usually continue operations while its debts are reorganized.
Hundreds of the discount retailer’s stores across the country will be closing in order to concentrate resources on the busiest locations, so claims the company.
Tuesday Morning, before its closures, operated about 487 stores in 40 different states.
The widespread coronavirus pandemic of 2020 caused the chain to shut down hundreds of its once-prolific outlets.
The company announced last month that, barring any unexpected delays, it plans to go private by September.
After weighing all of our options for dealing with Tuesday Morning’s staggering debt, our chief executive, Andrew Berger, has concluded that filing for Chapter 11 protection is the first step toward reorganizing and transforming the Company.
Despite the bankruptcy, Berger said, business as usual is expected to continue at the company’s remaining locations.
This year has seen the closure of stores by several other major retailers due to financial difficulties.
Two stores of popular pharmacies Walgreens and CVS will be closing this month.
In order to meet financial goals, Walmart is closing stores all over the country, including ones in Pinellas Park, Florida, and Washington, DC.