Off-price retailer Tuesday Morning is the latest company to file for bankruptcy.

According to the Dallas Morning News, the retailer filed for Chapter 11 bankruptcy on Wednesday after taking a significant financial hit during the coronavirus pandemic. The company warned investors in April that it may not be able to recover financially after being forced to shut down.

Tuesday Morning was in pretty good shape prior to the pandemic, having only drawn $3.6 million of its $180 million credit line. The credit line was reduced to $130 million during the temporary shutdown.

The retailer asked the court to initially close 132 stores and its distribution center in Phoenix. The initial round of closings will focus on underperforming locations or those that are in areas where there are too many locations in close proximity to one another.

The first round of closings will reduce the number of stores to 555, with plans to close 100 additional locations at a later date. There’s no word yet as to whether or not Tuesday Morning intends to close the Wichita Falls location.

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