Tuesday Morning Corp., the discount home-goods retailer, is discussing a potential bankruptcy filing after the pandemic shut down its stores, Bloomberg News reported. No formal decisions have been made, but Tuesday Morning has held initial talks with lenders about a bankruptcy loan that would keep the company running while it works out a recovery plan. The situation remains fluid and plans could change, with the company still seeking alternative forms of financing. The outcome could depend on market conditions and the outlook for when stores could re-open. Founded in 1974, Tuesday Morning is a national off-price retailer that specializes in home products, textiles, furnishings and other home goods. It has about 700 stores in 39 states, according to its website. Tuesday Morning temporarily closed its stores in response to the pandemic in March. Like other retailers, the company is bracing for a slump tied to the closures, but it’s especially vulnerable because all of its sales come at its stores; there’s no online outlet. It drew $55 million from its revolving credit facility as a precautionary measure to ride out the pandemic.
