Tuesday Morning reached an agreement with its creditor to delay a $10-million payment on debt last week.
The Dallas-based retailer, with headquarters on LBJ Freeway near Preston Road, reached a limited forbearance agreement with J.P. Morgan Chase to delay the payment until May 26 , the Dallas Morning News reports.
As part of the agreement, Chase advised the company “to retain a liquidation consultant and financial adviser.”
Tuesday Morning won loyal customers with its literal Tuesday-morning-only warehouse sales starting in the early 1970s. It grew to have more than 750 stores in 41 states and is traded on the NASDAQ exchange. Tuesday Morning predates Ross Dress for Less and similar discount retailers. The company found a combination of exclusivity and treasure hunting that made it uniquely successful. The Fort Worth Star-Telegram in 1992 called Tuesday Morning “the recession-proof retailer.”
Even as stores like J.C. Penney and Macy’s struggled with competition from online shopping, Tuesday Morning remained relatively sound.
But “COVID-related disruptions” caused the company to struggle with financing.
Retail sales in the United States plunged more than 16% in April, a record-setting collapse.
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