HUNTSVILLE, Ala. — Three North Alabama Tuesday Morning stores are winding down operations, company leaders said, as the company enters Chapter 11 bankruptcy protection. Eight other Alabama stores will shutter, as will about half of its stores in 37 other states.
The location at Southland Plaza in Decatur and the shops on Bailey Cove Road and University Drive in Huntsville are among those marked for closure. Liquidation sales are already underway, according to the Tuesday Morning website.
“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," said company CEO Andrew Berger in a written statement.
As part of the restructuring process, Tuesday Morning said they will focus on its "core and heritage markets." The Dallas-based home decor retailer said the locations marked for closure were either low-traffic or otherwise "underperforming" locations. It currently operates 487 stores in 40 states and plans to cut that number by about half.
Bankruptcy filings provided by the company included plans for a change to how it manages and obtains store inventory, in addition to other cost-cutting measures.
Tuesday Morning's other locations will operate as normal for the time being. The company said it secured $51.5 million in debtor-in-possession financing from a management firm to continue its operations.
"We look forward to taking steps that enable us to emerge as a stronger retailer," Berger said.
This is the second time Tuesday Morning has sought bankruptcy protection in three years.