Discount home goods retailer Tuesday Morning plans to close more than half of its U.S. stores, including locations in Grand Rapids and Portage, after the company filed for Chapter 11 bankruptcy on Tuesday.
In Tuesday Morning’s second time filing for bankruptcy in three years, the company reported under-performing sales at some of its stores, according to a report from CoStar News. The retailer filed with the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth division. The Dallas-based company expects to close most of the 264 locations targeted for closures in about eight weeks, per news reports.
On its website, Tuesday Morning listed the closures spanning 38 states, including three of its four Michigan locations at the Shops at CenterPoint mall in Grand Rapids, Southland Shopping Center in Portage and Troy Commons in Troy. The store in Farmington was not listed in the planned store closures.
Tuesday Morning has a range of discounted home goods, seasonal and holiday offerings.
While it’s unfortunate for any tenant to have to shut down because of financial difficulties, Southland Shopping Center will be able to fill the space, said Joshua T. Weiner, CEO of Portage-based Meyer C. Weiner Co. LLC, which owns the mall.
“We’re very fortunate, it’s a great location in a shopping center that is fully leased and has a waiting list,” Weiner said. “We’ve got more than a couple of prospects to take this space, and we think we’ll upgrade.”
Weiner is not sure exactly when the Tuesday Morning store plans to close. He suspects a future tenant to fill the space will likely come from the apparel sector.
“There are a number of retailers looking at the Kalamazoo County market that are looking for good locations,” Weiner said.
Representatives from the Shops at CenterPoint mall were not immediately available to respond to a request to comment on the expected store closure.
The 537,948-square-foot Shops at CenterPoint mall, located on 28th St. in Grand Rapids, was sold in 2022 for $63.5 million to New York-based DRA Advisors LLC in partnership with Illinois-based Pine Tree Commercial Realty LLC. The majority of the tenants have been very successful at the location, Advantage Commercial Real Estate Adviser Mark Ansara, who previously handled leasing at the location, said at the time of the transaction.
“CenterPoint is a very strong power center,” Ansara previously told MiBiz.
Retail space along 28th Street in Grand Rapids had a vacancy rate of 3.1 percent, compared to the 5.28 percent across the city of Grand Rapids, according to Colliers West Michigan’s latest retail report. Strip centers continue to be popular for investors and tenants, the company noted in the January 2023 report.
