Tuesday Morning has completed its financial and operational reorganization and emerged from bankruptcy protection.
The off-price home goods retailer has exited Chapter 11 with new debt financing and a planned $44 million rights offering for shareholders. Tuesday Morning, which filed for bankruptcy in May, closed approximately 200 stores during the process, leaving it with 490 stores in 40 states.
“We have emerged with a streamlined operating model, and are well-positioned to execute on our strategy,” stated Steve Becker, CEO. “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.”
Becker noted that Tuesday Morning worked with its advisors to craft a plan of reorganization that paid its 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,” he said.
Tuesday Morning had previously been on the hunt for a buyer and had set a bid deadline of Oct. 19, with an auction on Oct. 21 if multiple bids are received. But it reversed course and sought approval for a plan to reorganize as a standalone entity.
Tuesday Morning is supported by a $110 million asset-backed lending facility provided by J.P. Morgan, Wells Fargo, and Bank of America.