Tuesday Morning Secures Additional Reorganization Financing

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.

As previously announced, Tuesday Morning is pursuing a financial and operational reorganization designed to allow the company to reduce its outstanding liabilities and strengthen its overall financial position.

On May 27, 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 to pursue this reorganization. The company expects to emerge from Chapter 11 by early fall 2020.

Steve Becker, CEO, Tuesday Morning, said, “We look forward to partnering with B. Riley going forward as we work hard to reorganize the company so it is as strong as it can possibly be. This additional capital is an important milestone as it provides significant liquidity for us to continue operations throughout the reorganization process. It also further validates our plan to emerge as a healthier business and as one of the leading home goods off-price retailers.”

The DIP financing with B. Riley Financial remains subject to a number of conditions, including bankruptcy court approval.