Discount retailer Tuesday Morning plans to close eight stores in the Northern Virginia and Fredericksburg regions as part of a Chapter 11 bankruptcy filing announced Wednesday.
The Dallas-based retailer told a bankruptcy court in Texas it would close 132 stores that are underperforming or in close proximity to other locations. Included in that list are stores in Bailey’s Crossroads, Centreville, Fairfax, Fredericksburg, Stafford, Sterling, Vienna and Warrenton. No timetable was announced for the store closings, although the retailer said the store closure process will take place over the summer.
Tuesday Morning said the bankruptcy filing is designed to allow the company to reduce its outstanding liabilities and strengthen its overall financial position and cited "the immense strain the COVID-19 pandemic and related store closures have put on the business."
The company has obtained a commitment from its existing lender group to provide $100 million of debtor-in-possession financing and must obtain a commitment for up to $25 million of additional financing.
Tuesday Morning said it has reopened over 80% of its stores, all of which were initially closed due to the pandemic.
“The prolonged and unexpected closures of our stores in response to COVID-19 has had severe consequences on our business," said CEO Steve Becker. "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 company said it expects to eventually close 230 of its 687 stores nationwide and will be trying to renegotiate a number of its remaining leases.
In addition to the stores that are closing, Tuesday Morning has locations in Manassas, West Springfield, Alexandria and Woodbridge.