‘Streamlined’ Tuesday Morning Departs Chapter 11

Tuesday Morning has announced that it has reorganized its business and emerged from Chapter 11 bankruptcy protection.

The company stated that it had successfully completed its financial and operational reorganization while optimizing its store footprint, emerging from bankruptcy with 490 of its best performing stores serving customers.

Tuesday Morning noted that it will continue operations with the support of a $110 million asset-backed lending facility provided by J.P. Morgan, Wells Fargo, and Bank of America.

“We have emerged with a streamlined operating model and are well-positioned to execute on our strategy,” said Steve Becker, Tuesday Morning CEO, in announcing the bankruptcy emergence. “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.”

The company previously announced that its post-bankruptcy capital structure would include the $110 million asset-backed lending credit facility, $25 million in principal amount of a new senior subordinated note and $40 million in cash proceeds from the upcoming backstopped rights offering, which it will apply to pay creditors. In November of last year, as part of its reorganization, Tuesday Morning entered a sale/leaseback arrangement for its headquarters and warehouse facilities in Dallas for $60 million.