by: Anna Butler – Business Journal
Posted: February 17, 2023 / 7:37 am CST
Updated: Feb 17, 2023 / 7:37 PM CST
Tuesday Morning Corp. announced on Tuesday that it has filed for Chapter 11 bankruptcy protection in Fort Worth. Chapter 11 allows a business to restructure its obligee obligations with the goal of remaining a going concern.
The Dallas-based home improvement and decor retailer seeks financial and operational reorganization as a means to shore up outstanding liabilities, raise capital, and evolve into a “more nimble retailer that serves equity markets profitably,” according to a statement from the company.
Part of the restructuring will include closing stores in low-traffic regions as Tuesday Morning pursues optimization of its footprint and focuses on core and historic markets.
The company operates 487 stores in 40 states, including seven locations in the Kansas City area. Two area locations will close: 1130 W. 136th St. in the Martin City neighborhood of Kansas City and 8986 Northwest Skyview Ave. in the Tiffany Springs neighborhood.
Tuesday Morning is also looking to reduce costs and build efficiencies across its distribution channels by focusing on high-performing stores. This simplification is expected to include a move to a third-party logistics model and a transition to a more cost-effective inventory acquisition strategy.
Read on in the Kansas City Business Journal.