Tuesday Morning called it quits on reorganization weeks ago. Now it wants out of chapter 11 status, Home Textiles Today reported. The off-price home goods retailer has been in the process of closing all stores and going out of business since early May. It recently informed the court that it can no longer afford the expense of remaining in chapter 11 because it cannot pay its administrative expense fees. Furthermore, Tuesday Morning does not expect that its liquidation process will leave behind any funds for its unsecured creditors. As for the secured creditors, they have competing and unresolved liens against the company’s sale proceeds, it noted. “Either the parties will reach a settlement, or the court will decide these disputes,” the company told the bankruptcy court in its filing. Tuesday Morning has asked the bankruptcy court to convert its case to chapter 7 effective July 31. The court is scheduled to rule on the matter on July 27. When it filed for bankruptcy last February, the company originally hoped to pare down its store base and emerge from chapter 11 as a leaner operation. In March, it floated the idea of selling out to a white knight. By late April the writing was on the wall, and Tuesday Morning soon sold its assets to Hilco Merchant Resources for $32 million.
