Tuesday Morning gets interim approval of store-closing procedures

By Sarah Lizee

Olympia, Wash., Feb. 24 – Tuesday Morning, Inc.’s motion seeking approval of store-closing procedures gained interim approval from the U.S. Bankruptcy Court for the Northern District of Texas, according to an order filed Thursday.

A final hearing is scheduled for March 21.

As previously reported, the motion had drawn an objection from prepetition ABL agent Wells Fargo Bank, NA.

Prior to filing bankruptcy, Tuesday Morning had entered into a consulting agreement with Gordon Brothers Retail Partners, LLC for an orderly liquidation of the debtors’ inventory at all of its stores.

Notably, Tuesday Morning later terminated the consulting agreement and decided to go forward without the assistance of a liquidation consultant.

The company is now planning to liquidate inventory at and close only its underperforming store locations.

Wells Fargo said it doesn’t believe the debtors are capable of this task without a liquidation consultant.

“The decision to self-liquidate is likely to result in sales proceeds that do not constitute reasonably equivalent value and fair market value for the subject inventory,” Wells Fargo said in its objection.

Tuesday Morning is a discount off-price retailer based in Dallas. The company began its second Chapter 11 bankruptcy case on Feb. 14 under case number 23-90001. The previous case started on May 27, 2020 under case number 20-31476. The company exited that round of bankruptcy on Dec. 31, 2020.

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