Discount Retailer Tuesday Morning Nears Another Bankruptcy

<-rte-company state="{"_id":"00000185-cc04-d8f6-a9f5-deae46cb0000","_type":"00000160-4b23-d8bd-adfd-4b3348fd0000"}">Tuesday Morning Corp. is preparing for a possible bankruptcy filing within weeks as its losses and liquidity strains deepen, according to people with knowledge of the situation.

The specialty discount retailer recently added <-bsp-bb-link state="{"bbHref":"bbg://securities/0109817D%20US%20Equity","_id":"00000185-cc04-d8f6-a9f5-deae46ce0000","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">BDO USA as a restructuring adviser, said the people, who asked not to be identified because the matter is private. The company has also been <-bsp-bb-link state="{"bbDocId":"RF8BILDWX2PS","_id":"00000185-cc04-d8f6-a9f5-deae46ce0001","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">working with <-rte-company state="{"_id":"00000185-cc04-d8f6-a9f5-deae46ce0002","_type":"00000160-4b23-d8bd-adfd-4b3348fd0000"}">Piper Sandler Cos. and <-bsp-bb-link state="{"bbHref":"bbg://securities/1189L%20US%20Equity","_id":"00000185-cc04-d8f6-a9f5-deae46ce0003","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">Haynes & Boone to explore its options.

A Tuesday Morning retail store in Bailey’s Crossroads, Virginia.

Photographer: Andrew Harrer/Bloomberg

A bankruptcy could still be averted if the company can organize rescue financing or find a bidder, said the people.

Representatives for Tuesday Morning wouldn’t comment. Haynes ...