Item 7.01.
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Regulation FD Disclosure.
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As previously disclosed, on May 27, 2020
(the “Petition Date”), the Company and certain of its direct and indirect subsidiaries (collectively with the Company,
the “Debtors”) filed voluntary petitions (the “Chapter 11 Cases”) under Chapter 11 of the United States
Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Northern District of Texas, Dallas
Division (the “Bankruptcy Court”). The Chapter 11 Cases are being administered jointly under the caption “In
re: Tuesday Morning Corporation, et. al., Case No. 20-31476-HDH-11.” The Debtors will continue to operate their businesses
as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions
of the Bankruptcy Code and orders of the Bankruptcy Court.
On December 21, 2020, the Debtors filed
with the Bankruptcy Court their monthly operating report for the period beginning November 1, 2020 and ending November 30, 2020
(the “Monthly Operating Report”). The Monthly Operating Report is attached hereto as Exhibit 99.1 and is incorporated
herein by reference. This Current Report on Form 8-K (including the exhibit hereto) (this “Form 8-K”) will not be deemed
an admission as to the materiality of any information disclosed herein.
The Monthly Operating Report and other documents
filed with the Bankruptcy Court are available for inspection at https://dm.epiq11.com/case/tuesdaymorning/info. Documents
and other information available on such website are not part of this Form 8-K and are not deemed to be incorporated by reference
in this Form 8-K.
The information furnished in this Item 7.01
of this Current Report on Form 8-K and the Monthly Operating Report attached hereto as Exhibit 99.1 shall not be deemed “filed”
for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of such
section, and shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933,
as amended, or the Securities Exchange Act of 1934, as amended.
Cautionary Statement Regarding the Monthly Operating Report
The Company cautions investors and potential
investors not to place undue reliance upon the information contained in the Monthly Operating Report, which was not prepared for
the purpose of providing the basis for an investment decision relating to any of the securities of the Company. The Monthly Operating
Report is limited in scope, covers a limited time period and has been prepared solely for the purpose of complying with the monthly
reporting requirements of the Bankruptcy Court. The Monthly Operating Report was not audited or reviewed by independent accountants,
was not prepared in accordance with generally accepted accounting principles, is in a format prescribed by applicable bankruptcy
laws or rules, and is subject to future adjustment and reconciliation. There can be no assurance that, from the perspective of
an investor or potential investor in the Company’s securities, the Monthly Operating Report is complete. Results set forth
in the Monthly Operating Report should not be viewed as indicative of future results.
Cautionary Notice Regarding Forward-Looking Statements
This Current Report on Form 8-K contains
forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act
of 1995, which are based on management’s current expectations, estimates and projections. Forward looking statements also
include statements regarding the Company’s plans with respect to the Chapter 11 Cases, the Company’s plan to continue
its operations while it works to complete the Chapter 11 process and other statements regarding the Company’s proposed reorganization,
strategy, future operations, performance and prospects. These forward-looking statements are subject to risks and uncertainties
that could cause the Company’s actual results to differ materially from the expectations expressed in the Company’s
forward-looking statements. These risks, uncertainties and events also include, but are not limited to, the following: the Company’s
ability to obtain timely approval of the Bankruptcy Court with respect to motions filed in the Chapter 11 Cases; pleadings filed
that could protract the Chapter 11 Cases; the Bankruptcy Court’s rulings in the Chapter 11 Cases, and the outcome of the
Chapter 11 Cases generally; the Company’s ability to comply with the restrictions imposed by the terms and conditions of
the DIP ABL Credit Agreement, including the Company’s ability to maintain certain minimum liquidity requirements and file
and obtain approval of a plan of reorganization or sale of all of its assets by agreed upon deadlines; the length of time that
the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of
the Chapter 11 Cases; the Company’s ability to continue to operate its business during the pendency of the Chapter 11 Cases;
employee attrition and the Company’s ability to retain senior management and other key personnel due to the distractions
and uncertainties; the effectiveness of the overall restructuring activities pursuant to the Chapter 11 Cases and any additional
strategies the Company may employ to address its liquidity and capital resources; the actions and decisions of creditors and other
third parties that have an interest in the Chapter 11 Cases; risks associated with third parties seeking and obtaining authority
to terminate or shorten the Company’s exclusivity period to propose and confirm one or more plans of reorganization, for
the appointment of a Chapter 11 trustee or to convert the Chapter 11 proceeding to a Chapter 7 proceeding; increased legal and
other professional costs necessary to execute the Company’s restructuring; the Company’s ability to maintain relationships
with suppliers, customers, employees and other third parties as a result of the Chapter 11 Cases; the trading price and volatility
of the Company’s common stock and the effects of the delisting from The Nasdaq Stock Market; litigation and other risks
inherent in a bankruptcy process; the effects and length of the novel coronavirus pandemic; and the other factors listed in the
Company’s filings with the Securities and Exchange Commission.
Except as may be required by law, the
Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date on
which the statements were made or to reflect the occurrence of unanticipated events. Investors are cautioned not to place undue
reliance on any forward-looking statements.