Dallas — Tuesday Morning Corp., an off-price retailer of home goods and décor, is pursuing a financial and operational reorganization by filing voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division. Invictus Global Management, LLC (together with its affiliates, “Invictus”) will provide $51.5 million of debtor-in-possession (DIP) financing to support ongoing operations during the proceedings.
“After considering how best to address Tuesday Morning’s exceedingly burdensome debt, we have determined that the best path to reorganizing and transforming the company begins with a Chapter 11 filing,” says Andrew Berger, CEO and director. “Fortunately, we have the support of a committed capital provider in Invictus and a clear vision for transforming into a focused retailer that serves its core, heritage markets in a profitable manner. We look forward to taking steps that enable us to emerge as a stronger retailer. We appreciate all the support of our employees, customers, creditors and other partners as we seek to sustain commercial operations with minimal disruptions.”
During the restructuring process, Tuesday Morning plans to focus on optimizing its store footprint and will close stores in low-traffic regions while allocating the proper resources to remaining stores in high-traffic regions.
In addition, Tuesday Morning plans to realize significant cost reductions and new efficiencies across its distribution channels as a result of focusing on a narrower set of high-performing stores. The company expects to pivot to a third-party logistics, or 3PL, model and transition to a more cost-effective inventory acquisition strategy for remaining stores.
Munsch Hardt Kopf & Harr, P.C. is serving as the company’s legal advisor, and Vinson & Elkins LLP is serving as legal advisor to Tuesday Morning’s Special Committee. Piper Sandler is serving as financial advisor to the company.
Tuesday 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. Based in Dallas, the company opened its first store in 1974 and currently operates 487 stores in 40 states. For more information, visit www.tuesdaymorning.com.
SOURCE: Tuesday Morning Corporation