Advisory firm A&G Real Estate Partners has been tapped to auction off more than 250 retail leases belonging to troubled home furnishings company Tuesday Morning, it announced Thursday, according to a report at Bisnow. The lease sales come as part of Tuesday Morning’s chapter 11 restructuring, a process that kicked off last month, which the furniture seller said it hoped would help it “transform into a nimbler retailer.” The retail space being auctioned off totals more than 3.3 million square feet, with most stores between 10,000 and 20,000 square feet, A&G Senior Managing Director Mike Matlat said. The 250 locations that will be auctioned are just the first round of store closures, according to the release. This is A&G’s second time working with Tuesday Morning — when it filed for bankruptcy in May 2020, A&G worked with the retailer and its landlords to restructure 490 lease agreements. It closed 200 locations during that process. Dallas-based Tuesday Morning was operating in 40 states as of June 2021, where it employed around 1,600 full-time employees and 4,700 part-time workers, per the company’s most recent annual report. The company is closing more locations in some of the states that saw significant population booms due to pandemic-era migration, with plans to close as many as 24 stores apiece in Texas and Florida and 17 in North Carolina. The retailer also plans to close 31 stores in California, 16 in Colorado and 12 stores in both Virginia and Georgia, according to a list of closing stores on its website. Tuesday Morning’s reorganization — unlike its 2020 bankruptcy — comes as national retail vacancy hit its lowest levels since the 2008 recession and store openings outpacing closures in 2022.
