UPDATE 5/27: Tuesday Morning to files for Bankruptcy - Closing 1/3 of stores
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More retail dominoes to fall.
Although I wasn’t really a fan of this place, they had 9,000 employees which is always a sad thing to see.
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Wow. It seems like companies are going bankrupt one after the other.
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@mrvietnam said in Tuesday Morning to file Chapter 11 Bankruptcy:
Wow. It seems like companies are going bankrupt one after the other.
I wonder how much of this is just a scheme to snap up the company for pennies on the dollar, ala what happened with Sears.
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@dangeruss said in Tuesday Morning to file Chapter 11 Bankruptcy:
@mrvietnam said in Tuesday Morning to file Chapter 11 Bankruptcy:
Wow. It seems like companies are going bankrupt one after the other.
I wonder how much of this is just a scheme to snap up the company for pennies on the dollar, ala what happened with Sears.
Sears was unique in that it mostly owned its own real estate and land the buildings were on. Only a few retailers really had that, off hand I think Target and Home Depot do too. A REIT made sense only if you had billions to buy the entire Sears corporation (Eddie Lampert sunk nearly every last dollar he made from Autozone into Sears, the land would outlast the stores).
Pier 1 and Tuesday Morning don’t have that advantage, and a lot of their stores are too small to even be attractive to other off-price home goods places like TJMaxx and others.
A lot of these companies are just going to shutter. Malls will too, such as malls dependent on Macy’s, which is becoming last man standing amidst department stores and even they had an 80%+ drop in sales. This might be the death knell for a lot of treading-water malls.
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I’m watching too see if the demise of so many big corporate chain brands and malls will result in a mass resurgence of local mom and pop stores… especially in the wake of the ever increasing permanent job layoffs due to COVID-19 (well beyond just the retail industry)
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