National retailer Tuesday Morning preparing for a potential bankruptcy on Tuesday morning – Idaho Reporter

NASDAQ

National retailer Tuesday Morning preparing for a potential bankruptcy on Tuesday morning

Shares of Tuesday Morning Corporation (NASDAQ: TUES) lost almost 99% of its value in the last 5 years. National retailer was already in trouble but COVID-19 crisis proved to be the last nail in the coffin of Tuesday Morning.

It is reported on Saturday that Tuesday Morning is preparing bankruptcy filing within days. Within days is actually a first business day, which this time happens to be Tuesday and not Monday, because tomorrow is Memorial Day.

Memorial Day is an American holiday, observed on the last Monday of May, honoring the men and women who died while serving in the U.S. military. This year Memorial Day 2020 occurs on Monday, May 25.

It is expected that American discount retailer will file for bankruptcy on Tuesday morning as it is up against a Tuesday deadline to repay loans from JPMorgan Chase Bank and other lenders, it is reported by WSJ.

As of March 31, 2020, the Company had approximately $91 million outstanding under its line of credit and on April 30, 2020 Company said following in SEC filing:

Without appropriate financing it remains unclear whether the Company has or can obtain sufficient liquidity to withstand the COVID-19 disruptions.

Source

In the same SEC filing Tuesday Morning announced that :”the Company has furloughed the majority of its employees”.

COVID-19 crisis led the Dallas-based company, to close all 687 of its stores across the country, and is now planning to seek chapter 11 protection in Texas as early as this weekend after a debt default and the temporary store closures in late March,

Seasoned investors know that Chapter 11 filing will freeze creditors ability to act and seize property of Tuesday Morning on Tuesday morning. Within a month, probably all of TUES stores will reopen and cash flow will be returning to its accounts.

Tuesday Morning Corporation depends on its stores as they do not sell products online.

2 Comments

  1. basil fisher

    you are a rock star

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