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Tuesday Morning Files for Bankruptcy Amid Struggles

After over 45 years in the off-price retail sector, Tuesday Morning faced insurmountable financial challenges when COVID-19 forced store closures and halted revenue. The company has now filed for Chapter 11 bankruptcy with plans to downsize significantly, aiming to operate with a smaller footprint of around 230 stores from a previous 687. CEO Steven Becker acknowledged the difficulties during a recent analyst call, blaming a shorter shopping season and inventory issues for disappointing sales results. Meanwhile, sales figures from reopened stores show some promise, with same-store sales exceeding those of 2019 by 10%.

Lloyd Ross founded Tuesday Morning in 1974, pioneered the off-price retail format by selling excess inventory at discount rates, and rapidly expanded the company throughout the 1980s and 1990s. However, recently, the retailer has struggled in a marketplace where major players like TJX Cos have thrived. Analysts note that Tuesday Morning's mixed assortment of products, lack of marketing, and poorer store visibility stunted its growth. The upcoming restructuring will focus on reducing liabilities and revitalizing the store experience, but the road to recovery remains challenging for the retailer, as the pandemic's impact continues to weigh heavily on its operations.

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