Dallas-based closeout retailer Tuesday Morning has told customers in an email that it’s leaving one of its largest and high-profile locations.
The store in Preston Center at 6122 Luther Lane is the only location shutting its doors permanently, according to the email. The company hasn’t been reached for comment. That store may be closing because its lease wasn’t renewed.
“We are marking down our entire inventory and everything must go,” the email said.
The retailer was one of the early pioneers of the closeout, excess inventory retail model that others, such as TJMaxx, Marshalls, Ross and Burlington, have scaled into huge companies. Tuesday Morning was founded in Dallas in 1974.
It permanently closed stores during a bankruptcy reorganization in 2020 but still has a large fleet of 487 stores in 40 states. The company almost went back into bankruptcy this year but found new financing and new majority owners. New management was appointed earlier this month.
Tuesday Morning reported results for its fiscal first quarter ended Oct. 1 on Tuesday, and new CEO Andrew Berger said the retailer “navigated a challenging consumer environment.” Berger also noted that the poor results reflected a disruption of merchandise flow when the company was finalizing its new funding.
Comparable store sales declined 10.4% in the fall quarter from a year ago. Total sales declined to $157.1 million in the quarter vs. $176.9 million the prior year. Tuesday Morning posted a loss of $28.16 million, or 29 cents a share, vs. a loss of $14.6 million, or 17 cents a share, in the same quarter last year.
“I look forward to working with our teams to execute our plans to drive traffic and profitability for Tuesday Morning,” Berger said Tuesday in the earnings release.
As of Oct. 1, the company had $6.9 million in cash and $25.3 million in a line of credit.
Twitter: @MariaHalkias
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