Longacre Square Partners is working the Chapter 11 filing of Tuesday Morning Corp., the Dallas-based discount retailer pressured by a crushing debt load, supply chain woes and shifting consumer tastes.
It is the second bankruptcy filing in less than three years for the marketer of home goods and decor.
CEO Andrew Berger plans to close more than half of the retailer’s 464 stores in low-traffic regions while concentrating resources in high-traffic areas.
He believes this “targeted approach to winding down unprofitable and underperforming stores will position Tuesday Morning to emerge from bankruptcy with a profitable, cash-generating store fleet that serves its most engaged and loyal customers.”
Berger also will revamp distribution channels and adopt a more cost-effective inventory acquisition strategy.
Invictus Global Management, which looks forward to playing a key role in Tuesday Morning’s transformation, has agreed to provide $51.5 million in loans to carry the company through Chapter 11.
“As a Texas-based investment firm with strong roots in the state, we have long admired Tuesday Morning’s strong connection to customers seeking unique home goods at competitive prices,” said Amit Patel, partner at Invictus.
Longacre Square has partners Joe Germani, Charlotte Kiaie and VP Ashley Areopagita working the Chapter XI proceedings.
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