Retail store Tuesday Morning, located at the Village at the Peaks, is set to close later this month.
Dallas-based Tuesday Morning Corp. announced Wednesday that it will close 263 of its 487 stores nationwide. Colorado is the home of 16 Tuesday Morning stores, all of which are slated to close.
The company stated in a news release that it is “pursuing a financial and operational reorganization to enable the Company to reduce its outstanding liabilities, obtain significant and necessary capital, and ultimately transform into a nimbler retailer that serves heritage markets in a profitable manner.”
The company saw a 52-week high for stock prices in which it was selling for $42 a share. However, in August, the stock price dropped to $11.30. In November, its stock price continued to plummet to just more than nine cents a share. On Wednesday, the price dropped again to 7.2 cents, according to BizWest.
In pursuit of its reorganization, Tuesday Morning filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code.
It also secured a commitment from Invictus Global Management, LLC and its affiliates, which will “provide $51.5 million in debtor-in-procession financing to support ongoing operations during the proceedings,” according to the company’s news release.
“After considering how best to address Tuesday Morning’s exceedingly burdensome debt, we have determined that the best path to reorganizing and transforming the Company begins with a Chapter 11 filing. Fortunately, we have the support of a committed capital provider in Invictus and a clear vision for transforming into a focused retailer that serves its core, heritage markets in a profitable manner. We look forward to taking steps that enable us to emerge as a stronger retailer that draws on a legacy of offering a unique off-price value proposition to our loyal customer base. We appreciate all the support of our employees, customers, creditors and other partners as we seek to sustain commercial operations with minimal disruptions,” said Andrew Berger, chief executive officer and director of Tuesday Morning.
This week the company secured an additional $12.5 million from 1903 Partners and its affiliate, Gordon Brothers. This financing is subject to the bankruptcy court granting approval.
“After careful deliberation, we have determined that partnering with Gordon Brothers offers Tuesday Morning the best opportunity to save jobs, serve customers and maximize value for the estate,” Berger said. “Notably, this DIP clears the path for the company to continue transforming our operations through the bankruptcy process. In addition to providing liquidity, partnering with Gordon Brothers will allow us to leverage the team’s deep knowledge and experience in the retail sector.”
Tuesday Morning could not be reached to verify how many Longmont employees this would impact.
Danaria McCoy, vice president of operations at Village at the Peaks, said the space is being actively marketed and some interest has been expressed by potential occupants, however, since a lease has yet to be signed no announcements on who that may be have been made.
McCoy also said that the shopping center is not expecting a big impact to its foot traffic with the loss of the store.
