Tuesday Morning has received permission from a bankruptcy judge to wind down its operations after nearly 50 years in business despite an objection from one of its investors. The retailer started closing 250 locations earlier this year, pursuant to its plan to exit Chapter 11 with a much smaller footprint, and began the process of shuttering the remaining locations on May 1.
Tuesday Morning operated fewer than 500 stores when it made its latest bankruptcy filing in February, which was the second since 2020. The off-price retailer also obtained a commitment from Invictus Global Management to provide $51.5 million of debtor-in-possession financing to support ongoing operations during the 2023 proceedings — which led to Invictus opposing its plan to go out of business entirely.
The remaining assets will be sold to Hilco Merchant Resources for $32 million under a court-approved process, but the management company does not plan to keep the stores open. The going-out-of-business sales, which are now active at all locations across 25 states, are liquidating inventory at discounts of 30% off the lowest ticketed prices across the store.
Tuesday Morning had been struggling for some time, and the results of its final reported quarter showed no signs of recovery: Q1 2023, which ended Oct. 1, 2022, saw net sales of $157.1 million, down from $176.9 million for the same period the previous year. Additionally, comparable store sales decreased 10.4% compared to Q1 2022.
Tuesday Morning has been attracting bargain hunters since it opened in 1974, and its loyal customers will still have some time to bid farewell to the iconic retailer. Gift cards will be honored through May 13, and any merchandise purchased prior to April 28 may be returned within 14 days of the purchase date with the original receipt and in accordance with usual policies.