Tuesday Morning has declined to sell itself and will instead seek other paths for its financial reorganization, according to court filings. The retailer had planned to close on a sale of all its assets by Oct. 29, but will now push back its hearing date until Nov. 6 as it considers alternatives.
Tuesday Morning filed for bankruptcy protection in May 2020 with plans to close 230 of its 687 stores. The retailer was hit hard by the pandemic, which forced the temporary closure of all its locations. However, the company had hoped to fuel a turnaround after it began resuming brick-and-mortar operations on April 24, with sales at reopened stores up 10% year-over-year during the first month.
In a statement made in May, Tuesday Morning CEO Steve Becker had said that “the prolonged and unexpected closures of our stores in response to COVID-19 has had severe consequences on our business. 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. However, 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.”
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