New CEO Sought at Tuesday Morning

Michael Rouleau was never seen as a long-term leadership solution as Tuesday Morning’s CEO, but the veteran retailer’s abrupt departure with no immediate successor named reveals the off-price retailer lacked a succession plan.

The company said Rouleau, 77, will remain in a consultative capacity until March 31, 2016 and that it had created a new Office of the Chairman led by current Board Chairman Steven Becker to support oversight of the company’s strategic initiatives until a new CEO can be hired.

Rouleau, a veteran retailer who spent decades at Target, founded Office Warehouse, led store operations for Lowe’s and served as CEO of Michaels Stores, joined the Tuesday Morning board in November 2012. In March 2013, he was named interim CEO and by August of that year he was named the permanent CEO to lead the company’s transformation strategy.

"With Tuesday Morning's rebuilding program well underway, now is the right time to transition to new leadership,” Rouleau said. “It has been a privilege to lead Tuesday Morning alongside so many dedicated and committed colleagues. I am proud of what the team has accomplished over the last couple of years and believe there is still so much opportunity for Tuesday Morning."

Going forward, the operator of 750 office price stores focused on home décor, housewares, seasonal goods and gifts, will function with a leadership by committee approach. In addition to Chairman Becker, the new Office of Chairman will include board member Terry Burman who is also serving as new lead independent director, President and COO Melissa Phillips and Executive Vice President of Store Operations Phil Hixon.

In addition, the company said its board created a search committee and retained the executive search firm of Herbert Mines Associates to identify and evaluate internal and external CEO candidates.

Commenting on Rouleau’s departure, board chair Becker credited the industry veteran for revitalizing Tuesday Morning and positioning the company for success.

"We owe him a debt of gratitude, and appreciate Michael working tirelessly over the last couple of years to rebuild this great brand,” Becker said. “Looking ahead, Tuesday Morning has exceptionally strong management talent and we are well-positioned to execute on our strategies in both the near as well as the long-term."