Saturday, October 24, 2020

Oxford’s Tuesday Morning Store Not on List of First Round of Closings

Oxford’s Tuesday Morning discount home goods retailer is not on a long list of stores being closed in the coming weeks – at least, not yet.

On Wednesday, Tuesday Morning announced the company has filed for bankruptcy and plans to close 230 of its 687 stores.

The first phase of closures will begin this summer with 132 stores. The Oxford store is not on the list for phase one. It’s unknown which stores will be closed in the following phase.

“The prolonged and unexpected closures of our stores in response to COVID-19 has had severe consequences on our business,” said Steve Becker, chief executive officer, said in a letter to customers on Wednesday. “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.”

The news of another pandemic-related bankruptcy filing comes in the wake of Chapter 11 filings from Neiman Marcus, J.C. Penney and J.Crew as well as the impending closure of all Pier 1 Imports stores.

The first 132 stores were identified as underperforming or are situated in areas where too many locations are in close proximity.

Tuesday Morning plans to attempt to renegotiate a significant number of leases during this process. Of the remaining 555 stores, the company plans to exit approximately 100 additional locations leaving a go-forward footprint of approximately 450 stores.

“We plan to emerge from Chapter 11 in a stronger position as a leading home goods off-price retailer, providing unmatched value to our customers,” Becker wrote. “The commitment from our lenders to provide access to significant capital demonstrates faith in our value-driven business model and iconic brand. Looking ahead, we’ve been encouraged by very positive performance of the business as we continue to re-open our doors and welcome back our dedicated customers.”

Staff report