In an updated reorganization plan filed last week, Tuesday Morning entered a sale/leaseback arrangement for its headquarters and warehouse facilities in Dallas for $60 million.
Tuesday Morning is working to build back traffic after store closures, Placer.ai reported, while CVS has made substantial visit gains at its locations.
Tuesday Morning said that the company has obtained a commitment from BRF Finance Co., LLC, an affiliate of B. Riley Financial, Inc., for $25 million of debtor-in-possession financing as required by the company’s current $100-million DIP agreement with its existing lender group. With this commitment, the company has secured commitments for a total of $125 million to support the continuity of operations during Chapter 11 proceedings.
Tuesday Morning will pursue a financial and operational reorganization designed to allow the company to reduce its outstanding liabilities and strengthen its overall financial position. To pursue this reorganization, Tuesday Morning filed voluntary petitions for protection under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division.
A range of retailers across channels are responding to the coronavirus outbreak with moves to temporarily close their stores, reduce store hours and other consumer and employee oriented initiatives.
According to a recent Dallas Morning News report, an activist investor has purchased shares of Tuesday Morning, which may lead to a potential bid for the off-price retailer.
After a second quarter that saw comparable store sales decline, Tuesday Morning said it is continuing to focus on its reorganized merchant team as it looks to reshape its off-price buying operations.
Tuesday Morning has appointed Paul Metcalf as acting chief merchant, effective immediately.
First quarter comparable store sales at Tuesday Morning were down as officials with the retailer pinned the decline on a reduced store count and the negative impact of several weather events including Hurricane Dorian.
Tuesday Morning posted a bigger net loss for its fourth quarter, but the company said it is well positioned to improve sales and earnings performance.
Second quarter sales at Tuesday Morning were up slightly as the retailer also reported strong gains in net income for the three month period ended December 31.