Daily News
From Home Furnishing Business
Tuesday Morning Corp. Announces Financing to Reduce Liabilities
March 12,
2023 by HFBusiness Staff in Business Strategy, Industry 
Tuesday Morning Corp., off-price retailer of home goods and décor, announced that it has entered into a new $12.5 million senior secured debtor-in-possession (DIP) financing, which carries a superpriority, with 1903 Partners, LLC (together with its affiliates, Gordon Brothers).
The DIP will enable the Company to reduce its outstanding liabilities and continue transforming its operations through the bankruptcy process. The latest financing from Gordon Brothers brings the Company’s total DIP commitments to $27 million.
As previously disclosed, Tuesday Morning has filed voluntary petitions for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division.
Andrew Berger, CEO and director, commented, “After careful deliberation, we have determined that partnering with Gordon Brothers offers Tuesday Morning the best opportunity to save jobs, serve customers and maximize value for the estate.”
“Notably, this DIP clears the path for the Company to continue transforming our operations through the bankruptcy process. In addition to providing liquidity, partnering with Gordon Brothers will allow us to leverage the team’s deep knowledge and experience in the retail sector.”
Kyle Shonak, transaction team and head of North America lending at Gordon Brothers, added, “We are proud to partner with Tuesday Morning through these Chapter 11 proceedings and are confident in Andrew and the leadership team’s ability to minimize disruptions to operations as they work to emerge from bankruptcy as a viable business. The entire Tuesday Morning team has our financial and operational support.”
The DIP includes customary provisions, including requiring the Company to operate based upon an agreed budget and satisfy certain bankruptcy milestones by agreed upon dates.
Court filings and other documents related to the court-supervised process are available at https://cases.stretto.com/TuesdayMorning or by calling the Company’s claims agent, Stretto, at (855) 202-8673 or by sending an email to TuesdayMorningInquiries@stretto.com.
Munsch Hardt Kopf & Harr, P.C. is serving as the Company’s legal advisor. Piper Sandler is serving as investment banker to the Company.