Tuesday Morning filed twice in three years — the second filing killed it

Tuesday Morning was an off-price home goods retailer founded in 1974. By 2018 it had grown to more than 700 stores across the US and over $1 billion in annual revenue. The chain specialized in deep discounts on home furnishings, gifts, and decor, selling excess inventory and closeout merchandise at 50–70% off retail. Its customer base was bargain-driven, loyal, and older — a demographic that shopped in person and expected to find unpredictable inventory on every visit.

The first bankruptcy arrived in May 2020. Extended COVID store closures destroyed traffic and cash flow. Tuesday Morning filed for Chapter 11, closed nearly 200 unprofitable stores and a distribution center, and emerged from bankruptcy in December 2020. The company had restructured its debt and trimmed its footprint to roughly 500 stores. It looked like a standard pandemic restructuring story with a survivable ending.

It was not survivable. In February 2022, private equity firm Retail Ecommerce Ventures acquired Tuesday Morning for $35 million with plans to revive the chain. Instead, inflation hammered the off-price model: rising costs compressed margins while customers cut discretionary spending. A new executive leadership team made things worse — the stock price fell from over $4 to $0.30 per share in just over a year. On February 14, 2023, Tuesday Morning filed for Chapter 11 for the second time in three years. This time there was no restructuring plan.

In April 2023 the company announced it would close half its stores; by May it said all remaining 200 locations would close. The case was converted to Chapter 7 liquidation in July 2023. All stores closed, all employees were let go, and the brand survives only as a website.