It has been a tough few weeks for low cost retailers.
First, Mattress Tub & Past, a long-struggling main home-goods retailer, ceased operations and was shortly liquidated. The transfer wasn’t surprising however the pace at which it occurred was a bit stunning.
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The corporate went from an working enterprise to going-out-of-business gross sales in a matter of weeks. That was shortly adopted by the corporate’s mental property — its identify, web site, and different digital property — promoting for $21.5 million to the previous Overstock.com.
So, whereas the Mattress Tub & Past shops went away, its identify will stay as the brand new proprietor is adopting its id.
“Combining the strengths of the Overstock operational mannequin and the Mattress Tub & Past model will create a robust synergy,” Overstock (now Mattress Tub & Past) CEO Jonathan Johnson stated. “I’m excited for shoppers to expertise the brand new Mattress Tub and an excellent greater and higher Past.”
One other well-liked retailer, Christmas Tree Shoppes, has not had its IP bought off but, however it has entered the liquidation part of its enterprise. Now, these two chains shall be joined by a 3rd retailer which makes use of an identical mannequin — the treasure hunt — in transferring from Chapter 11 to Chapter 7.
Tuesday Morning Heading for Chapter 7
The treasure hunt mannequin of retail includes having an ever-changing array of merchandise that results in repeat visits from clients. The mannequin is used most famously by the TJX (TJX) – Get Free Report group, which incorporates Marshalls, House Items, and TJ Maxx.
The tactic is that clients perceive the varieties of merchandise they will discover within the shops, however not precisely what they will discover and at what value. That leads individuals to go to usually, hoping to seek out new treasures at surprising costs.
Tuesday Morning (TUEMQ) – Get Free Report was one other treasure-hunt retailer promoting items within the house area, like bedding, house decor, kitchenware, and extra.
Now, the corporate has declared its intentions to maneuver its Chapter 11 chapter to a Chapter 7, RetailDive reported.
That change, which shall be thought of by Choose Edward Morris in U.S. Chapter Court docket for the Northern District of Texas in Fort Value on July 27, will primarily finish the corporate apart from promoting off any remaining stock.
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Tuesday Morning Nonetheless Has a Web site
The corporate’s web site stays in operation and it is unclear whether or not that can stay the case after the Chapter 7 turns into official. Tuesday Morning did keep a hopeful tone on the location:
“Our web site contains a restricted number of merchandise at present, however relaxation assured, we’re working tirelessly behind the scenes to increase our stock. We shall be including hundreds of recent merchandise over the following few weeks to TuesdayMorning.com, making certain that you’ve got an intensive vary to select from,” the corporate stated.
The web site notes that the corporate is closing all its shops — which hasn’t truly occurred but — and units up a potential return.
“We perceive that lots of you might be eagerly awaiting the opening of a bodily retailer. We aren’t ruling that out. Maybe we must always return to our roots and open the primary location in Dallas, the place Tuesday Morning first started its journey. You by no means know ;),” the corporate posted.
That is seemingly wishful considering for a model that can quickly discover itself on the public sale block. That does not imply one other retailer will not revive the model (Mattress Tub & Past Tuesday Morning has a pleasant ring to it) however the present model of the corporate is probably going in its closing weeks pending the courtroom listening to.
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