Tuesday Morning Corp. announced Tuesday that it has filed for Chapter 11 bankruptcy protection in Fort Worth. Chapter 11 enables a business to restructure its creditor obligations with the goal to remain a going concern.
The Dallas-based retailer of home goods and decor seeks the financial and operational reorganization as a means to shore up outstanding liabilities, obtain capital and evolve into a “nimbler retailer that serves heritage markets in a profitable manner,” according to a company release.
Part of the restructuring is set to include closing stores in low-traffic regions as Tuesday Morning pursues the optimization of its footprint and a focus on core and heritage markets.
The company operates 487 stores in 40 states, including seven Kansas City-area locations. Two area locations will close: 1130 W. 136th St. in Kansas City’s Martin City neighborhood and 8986 Northwest Skyview Ave. in the Tiffany Springs neighborhood.
Tuesday Morning also is looking to reduce costs and create efficiencies across its distribution channels through its focus on high-performing stores. That streamlining is expected to include a pivot to a third-party logistics model and transition to a more cost-effective inventory acquisition strategy.
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