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06/04/2020

Tuesday Morning secures loan as part of bankruptcy proceedings

Marianne Wilson
Editor-in-Chief
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Tuesday Morning Corp. is partnering with B. Riley Financial to help support the retailer’s reorganization through bankruptcy.

The off-price home goods retailer, which filed for Chapter 11 bankruptcy protection on May 27, said it has obtained a commitment from BRF Finance Co., an affiliate of B. Riley Financial, for $25 million of debtor-in-possession to support operations during Chapter 11 bankruptcy. 

Tuesday Morning, which plans to permanently close about 230 of its 687 stores, said the funding is part of its $100 million DIP agreement with its existing lenders. The company is seeking to restructure under Chapter 11 after COVID-19-related store closures slammed its business. 

“This additional capital is an important milestone as it provides significant liquidity for us to continue operations throughout the reorganization process,” said CEO Steve Becker. “It also further validates our plan to emerge as a healthier business and as one of the leading home goods off-price retailers.”

Tuesday Morning expects to emerge from Chapter 11 by early fall 2020.