Retail Tuesday Morning Files for Bankruptcy
2023.02.15 14:43
Retail Tuesday Morning Files for Bankruptcy
By Ray Johnson
Budrigannews.com – The discount home goods retailer Tuesday Morning filed for Chapter 11 bankruptcy protection on Tuesday, marking the company’s second bankruptcy in three years.
It is the most recent illustration of the retail apocalypse, which is beginning to return.
The previous bankruptcy of Tuesday Morning occurred in the early stages of the Covid-19 pandemic. “Exceedingly burdensome debt” must be restructured, the chain said Tuesday. To continue operating, it has secured $51 million in financing.
The number of stores owned by the Dallas, Texas-based company has decreased from 700 to 480 over the past three years. It plans to cut costs and close stores that don’t make money.
This year, a growing number of financially troubled retailers have filed for bankruptcy, including Tuesday Morning. In the face of inflation, consumer spending has slowed down, and interest rates have gone up, making it more expensive for businesses to borrow money.
Party City’s mattress manufacturer, Serta Simmons; and Independent Pet Partners, a retailer of pet stores, has filed for bankruptcy recently. By announcing plans to close 400 stores and raising stock, Bed Bath & Beyond narrowly escaped bankruptcy. However, its future is in doubt.
For most of the pandemic, the difficulties faced by the retail industry represent a turn in industry trends.
Consumers purchased a variety of goods, including clothing, furniture, electronics, and more, following the initial burst of bankruptcies. Consumers supported struggling chains and drove up retail sales.
However, holiday sales were subdued, and the sector is anticipated to experience a weaker 2023. Coresight Research estimates that approximately 2,800 stores will close this year, representing an increase of 8% from last year.
According to credit rating agencies, Rite Aid, Joann Fabric, and other chains are also under watch for bankruptcy. These businesses have been struggling for a long time and are particularly susceptible to challenging economic conditions.
