Tuesday Morning Corp. will cease to exist after a liquidation firm agreed to purchase the assets of the company. The remaining 200 stores have started to offer closeout sales, including those in Houston.
According to court documents, Judge Edward Morris of the Fort Worth Division of the U.S. Bankruptcy Court of the Northern District of Texas has approved the sale of Hilco Merchant Resources to the Dallas-based retailer of home goods. The liquidation company spent over $32 millions.
The discount retailer, which carries a mix of housewares, apparel, toys and seasonal items, began going-out-of-business sales April 29 at all remaining 200 Tuesday Morning stores in 25 states, Hilco said in a May 1 press release.
According to its website, Tuesday Morning still has 59 locations in Texas. This is the largest footprint of any company. This includes a dozen stores in Conroe and Friendswood as well as Houston, Katy Shenandoah Spring, Webster, Katy and Houston.
Gift cards will still be accepted until May 13th, according to the press release. Hilco officials have announced that certain store fixtures and equipment will also be sold at closing locations. The original receipt must be included with any merchandise purchased before April 28.
Invictus, an Austin-based company that provided financing for the company's February bankruptcy filing was against the sale. Other lenders and landlords also opposed the sale. An attorney for Invictus told the Dallas Morning News that the company 'tried very hard with a bridge loan and (debtor-in-possession) financing' to preserve the store.
Tuesday Morning (OTC TUEM), due to challenges related to the pandemic, filed for Chapter 11 bankruptcy for the first-time in May 2020. The retailer planned to close 230 stores out of 687 at the time. Home goods company emerged out of bankruptcy in 2021 with approximately 490 stores. The company was funded by proceeds from a sale-leaseback for $70.25 millions, proceeds from an equity rights offering of $40 million, a senior secured credit facility worth $110 million, and senior subordinated notes worth $25 million.
The business declared bankruptcy in February for the second consecutive time. The original plan was to close 265 stores including four in Houston, reorganize 200 of the remaining stores and emerge from bankruptcy as a smaller business. Invictus contributed $51 million for the company to continue its operations.