Low cost retailer Tuesday Morning has filed for Chapter 11 bankruptcy protection and is trying to shut greater than 200 of its practically 700 shops.
First, the Dallas-headquartered firm is looking for court docket approval to close a minimum of 132 shops, which it says are both underperforming or are situated in areas the place one other retailer is closeby. (These addresses are listed under, based on a court filing.) It’s also planning to close its distribution middle in Phoenix that helps these areas.
Tuesday Morning mentioned it expects the closures to happen over the summer time.
Meantime, the corporate mentioned it in the end plans to shut one other 100 shops along with the 132, leaving it with about 450 areas when it exits Chapter 11 in early fall. That’s, if all the things goes as deliberate.
The closures by Tuesday Morning add to a glut of retail actual property that’s going darkish, completely, amid the coronavirus pandemic. The Covid-19 disaster pressured many retailers’ shops to close quickly. However now, some are being pressured shut completely, as companies grapple with the way to maintain operating an organization with fewer gross sales.
J.C. Penney, which filed for chapter earlier this month, is planning to shut about 240 shops as a part of its restructuring. Pier 1 Imports, which had filed for chapter earlier than the pandemic in February, is planning to liquidate its remaining stores after it could not find a buyer. L Brands is planning to shut 250 Victoria’s Secret stores in 2020.
“You now have Pier 1 and Tuesday Morning,” closing lots of of shops altogether, mentioned Invoice Learn, govt vice chairman at industrial actual property providers agency Retail Specialists.
“However one of many oldest tips within the Chapter 11 recreation is to announce a big pool of retailer closings, however then to barter with landlords and find yourself with a smaller pool … as a result of your obtain higher rental phrases,” he mentioned.
—CNBC’s John Schoen accomplished this information visualization.