Tuesday Morning Secures $32M in Debt Refinancing

Tuesday Morning Corp., the Dallas-based off-price home goods retailer, has entered into an agreement to secure $32 million in debt financing from a special purpose vehicle (SPV) formed by Retail Ecommerce Ventures (REV) — the owner of Pier 1 Imports, Linens ‘n Things, Stein Mart, Modell’s Sporting Goods — and Ayon Capital LLC. Additionally, several members of Tuesday Morning’s management team, including CEO Fred Hand, are providing $3 million in debt financing. SPVs are subsidiary companies formed to undertake a specific business purpose or activity.

Tuesday Morning said the investments will strengthen its balance sheet and allow it to begin executing an omnichannel strategy, including an e-commerce presence and digital activations to complement the company’s store footprint. Tuesday Morning will also have access to REV’s fulfillment network, infrastructure and systems, and technology and e-commerce capabilities, as well as enter into a new licensing agreement that will allow it to sell Pier 1 products. Lastly, Tuesday Morning’s board of directors will be reconstituted, with REV and Ayon having their designees comprise a majority of the board.

Total Retail's Take: Tuesday Morning gets a needed lifeline to keep itself in business. In July, Bloomerg News reported that the company was exploring restructuring options including a possible second bankruptcy filing in less than two years. Indeed, without an e-commerce business, Tuesday Morning was among several retailers that filed for Chapter 11 bankruptcy in the early days of the pandemic, unable to survive store lockdowns and rapidly shifting shopping habits. The company emerged from bankruptcy in January 2021 after cutting its debt and permanently closing nearly 200 stores. Tuesday Morning currently operates 490 stores in 40 states, which figure to be strengthened with the launch of an e-commerce business.