Dallas-based retailer Tuesday Morning announced Wednesday that it has filed for bankruptcy due to the financial impact of COVID-19.
"The complete halt of store operations for two months put the company in a financial position that can be effectively addressed only through a reorganization in Chapter 11," CEO Steve Becker said in a news release.
Tuesday Morning will also close about 230 of its stores this summer to focus on high-performing locations. The closures will occur in phases, according to the company.
The company has identified 132 of those stores but hasn't publicly announced which locations will close.
"These stores were identified as underperforming or are situated in areas where too many locations are in close proximity," the retailer said.
The off-price retailer was found in 1974 in Dallas and currently has 687 stores in various states.
The company says it has obtained a commitment from its existing lender group to provide $100 million of debtor-in-possession financing.
According to the retailer, this process will allow them to emerge as a stronger company by early fall 2020.
"Prior to the pandemic, we were gaining momentum in our merchant organization, growing our vendor base and improving brands, assortment, and value for our customers, while investing in our technology and corporate leadership team," Becker said.
Tuesday Morning reopened many of its stores in late April and said sales have been approximately 10% higher than during the same period last year.
