Tuesday Morning Successfully Completes Restructuring Process
January 04 2021 - 8:30AM
Tuesday Morning and certain of its subsidiaries (collectively
“Tuesday Morning” or the “Company”) today announced that it has
successfully completed its financial and operational reorganization
and emerged from Chapter 11.
Tuesday Morning is supported by a $110 million asset-backed
lending facility provided by J.P. Morgan, Wells Fargo, and Bank of
America. The Company has further optimized its store footprint and
is emerging with 490 of its best performing stores.
“We have emerged with a streamlined operating model, and are
well-positioned to execute on our strategy,” stated Steve Becker,
Chief Executive Officer. “I want to thank our associates,
customers, vendors, creditors, and equity investors for their
steadfast support that helped us get to this critical milestone.
Tuesday Morning is poised for a bright future in the off-price home
goods market and we look forward to continue serving our valued
customers.”
“Tuesday Morning worked diligently with our advisors to craft a
plan of reorganization that paid our vendor claims in full while
protecting our shareholders. We are especially pleased that
our plan of reorganization has attracted significant new
institutional ownership while allowing our shareholders to
participate in the upcoming $40 million rights offering,” continued
Becker.
Court filings and other documents related to the
court-supervised process are available
at https://dm.epiq11.com/TuesdayMorning.
Tuesday Morning was advised in this process by Haynes and Boone,
LLP as legal advisor, Miller Buckfire, a Stifel company,
as financial advisor, and AlixPartners, LLP as restructuring
advisor.
About Tuesday MorningTuesday Morning
Corporation is one of the original off-price retailers specializing
in name-brand, high-quality products for the home, including
upscale home textiles, home furnishings, housewares, gourmet food,
toys and seasonal décor, at prices generally below those found in
boutique, specialty and department stores, catalogs and on-line
retailers. Based in Dallas, Texas, the Company opened
its first store in 1974 and currently operates 490 stores in 40
states. More information and a list of store locations may be
found on the Company’s website at www.tuesdaymorning.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release 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 emergence from its Chapter 11
proceedings, the Company’s liquidity and capital structure
following emergence, and other statements regarding the Company’s
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 complete its
proposed rights offering; the effects and length of the novel
coronavirus pandemic; changes in economic and political conditions
which may adversely affect consumer spending; our ability to
identify and respond to changes in consumer trends and preferences;
our ability to mitigate reductions of customer traffic in shopping
centers where our stores are located; our ability to continuously
attract buying opportunities for off-price merchandise and
anticipate consumer demand; our ability to obtain merchandise on
varying payment terms; our ability to successfully manage our
inventory balances profitably; our ability to effectively manage
our supply chain operations; loss of, disruption in operations of,
or increased costs in the operation of our distribution center
facility; unplanned loss or departure of one or more members of our
senior management or other key management; increased or new
competition; our ability to maintain and protect our information
technology systems and technologies and related improvements to
support our growth; increases in fuel prices and changes in
transportation industry regulations or conditions; increases in the
cost or a disruption in the flow of our imported products; changes
in federal tax policy including tariffs; the success of our
marketing, advertising and promotional efforts; our ability to
attract, train and retain quality employees in appropriate numbers,
including key employees and management; increased variability due
to seasonal and quarterly fluctuations; our ability to protect the
security of information about our business and our customers,
suppliers, business partners and employees; our ability to comply
with existing, changing and new government regulations; our ability
to manage risk to our corporate reputation from our customers,
employees and other third parties; our ability to manage litigation
risks from our customers, employees and other third parties; our
ability to manage the risk associated with product liability claims
and product recalls; the impact of adverse local conditions,
natural disasters or other events; our ability to manage the
negative effects of inventory shrinkage; our ability to manage
unexpected costs related to our insurance programs; increased costs
or exposure to fraud or theft resulting from payment card industry
related risks and regulations; our ability to maintain an effective
system of internal controls over financial reporting; impacts from
the delisting of our common stock from the Nasdaq Stock Market; 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.
MEDIA:
Jonathan MorganKekst
CNCjonathan.morgan@kekstcnc.com212.333.5525
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