A&G Real Estate Partners will be auctioning over 250 leases nationwide as part of a first round of store closures from Tuesday Morning Corp. in connection with the off-price home goods and décor retailer’s voluntary Chapter 11 reorganization.
In addition to directing the auction, the New York-based real estate advisory and services firm is advising on overall lease portfolio strategy. This assignment marks the second time A&G was tapped by Tuesday Morning as real estate advisor, with the firm previously retained during the chain’s May 2020 Chapter 11 reorganization. During that time, A&G worked with the retailer’s management and landlords to restructure the chain’s 490 go-forward leases.
“As part of its restructuring, Tuesday Morning is committed to optimize its store footprint and focus on its core markets,” said A&G Senior Managing Director Todd Eyler. “The company’s new management team believes this targeted approach to closing unprofitable and underperforming stores, along with a variety of other measures being undertaken to improve operations, will allow Tuesday Morning to emerge from Chapter 11 with a profitable store fleet that serves its most engaged and loyal customers. However, additional stores can be expected to close in the event certain acceptable terms are not reached with the landlords.”
The stores now being auctioned range in size from 6,000 to 28,000 square feet and include freestanding and strip center sites. Many of the locations offer five years or more of remaining lease term, along with renewal options.
“These leases offer tremendous opportunities for expansion-minded retailers and other tenants to open their doors in strong locations within three months,” said Eyler.
A&G Senior Managing Director Mike Matlat added that A&G is already seeing interest from many types of retail and non-retail users. “The early interest reflects the fact that it’s rare to see so many good quality locations become available in major markets, including such desirable DMAs as Dallas, Houston, Phoenix and Tampa,” he said.