Tuesday Morning Dragging Feet on Bankruptcy Sale, Creditors Say

Creditors of Tuesday Morning Corp. asked a bankruptcy judge to deny the retailer’s request for more time to file a reorganization plan or sell assets, concerned that a delay will reduce the company’s value.

Tuesday Morning executives appear to be “ignoring and slow-playing” potential buyers to stall the sale of the company, the Official Committee of Unsecured Creditors said in a filing with the U.S. Bankruptcy Court for the Northern District of Texas.

The company was “taken aback by the Committee’s scorched-earth approach,” it said in a response filed Wednesday. Tuesday Morning called the committee’s allegations “inflammatory,” “unsupported,” and “wholly ...