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May 27, 2020, 6:41 a.m. EDT

Tuesday Morning declares bankruptcy, to close 33% of its stores in the reorganization

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By Tomi Kilgore

Shares of Tuesday Morning Corp. plunged 39% toward a record low in premarket trading Wednesday, after the discount home furnishings retailer said it has filed for bankruptcy, as the prolonged closure of its stores amid the COVID-19 pandemic created an "insurmountable financial hurdle." The company said it has obtained $100 million in debtor-in-possession financing so it can continue operations during the bankruptcy. The company said plans to permanently close about 230 of its 687 total stores, or 33%, as part of the reorganization. Tuesday Morning said it had initially closed all of its stores due to the pandemic, but has reopened about 80% of the stores, and over 7,300 employees have returned to work. The bankruptcy comes a little over a week after fellow retailer J.C. Penney filed for bankruptcy. The stock has plummeted 86.7% year to date through Tuesday, while the SPDR S&P Retail ETF /zigman2/quotes/206947004/composite XRT +1.36% has dropped 12.5% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.05% has shed 7.4%.

/zigman2/quotes/206947004/composite
US : U.S.: NYSE Arca
$ 44.08
+0.59 +1.36%
Volume: 3.49M
July 10, 2020 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,185.04
+32.99 +1.05%
Volume: 2.41B
July 10, 2020 5:09p
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