It has been a rough few weeks for discount retailers.
First, Bed Bath & Beyond, a long-struggling major home-goods retailer, ceased operations and was quickly liquidated. The move wasn't unexpected but the speed at which it happened was a bit shocking.
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The company went from an operating business to going-out-of-business sales in a matter of weeks. That was quickly followed by the company's intellectual property -- its name, website, and other digital assets -- selling for $21.5 million to the former Overstock.com.
So, while the Bed Bath & Beyond stores went away, its name will remain as the new owner is adopting its identity.
“Combining the strengths of the Overstock operational model and the Bed Bath & Beyond brand will create a powerful synergy,” Overstock (now Bed Bath & Beyond) CEO Jonathan Johnson said. “I’m excited for consumers to experience the new Bed Bath and an even bigger and better Beyond.”
Another popular retailer, Christmas Tree Shoppes, has not had its IP sold off yet, but it has entered the liquidation phase of its business. Now, those two chains will be joined by a third retailer which uses a similar model -- the treasure hunt -- in moving from Chapter 11 to Chapter 7.
Image source: Shutterstock
Tuesday Morning Heading for Chapter 7
The treasure hunt model of retail involves having an ever-changing array of merchandise that leads to repeat visits from customers. The model is used most famously by the TJX (TJX) -) group, which includes Marshalls, Home Goods, and TJ Maxx.
The method is that customers understand the types of merchandise they'll find in the stores, but not exactly what they'll find and at what price. That leads people to visit often, hoping to find new treasures at unexpected prices.
Tuesday Morning (TUEMQ) -) was another treasure-hunt retailer selling goods in the home space, like bedding, home decor, kitchenware, and more.
Now, the company has declared its intentions to move its Chapter 11 bankruptcy to a Chapter 7, RetailDive reported.
That change, which will be considered by Judge Edward Morris in U.S. Bankruptcy Court for the Northern District of Texas in Fort Worth on July 27, will essentially end the company aside from selling off any remaining inventory.
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Tuesday Morning Still Has a Website
The company's website remains in operation and it's unclear whether that will remain the case after the Chapter 7 becomes official. Tuesday Morning did maintain a hopeful tone on the site:
"Our website features a limited selection of products today, but rest assured, we are working tirelessly behind the scenes to expand our inventory. We will be adding thousands of new products over the next few weeks to TuesdayMorning.com, ensuring that you have an extensive range to choose from," the company said.
The website notes that the company is closing all its stores -- which hasn't actually happened yet -- and sets up a possible return.
"We understand that many of you are eagerly awaiting the opening of a physical store. We aren't ruling that out. Perhaps we should go back to our roots and open the first location in Dallas, where Tuesday Morning first began its journey. You never know ;)," the company posted.
That's likely wishful thinking for a brand that will soon find itself on the auction block. That doesn't mean another retailer won't revive the brand (Bed Bath & Beyond Tuesday Morning has a nice ring to it) but the current version of the company is likely in its final weeks pending the court hearing.
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