Tuesday Morning Announces Confirmation of Plan of Reorganization
23 Décembre 2020 - 7:10PM
Tuesday Morning and certain of its subsidiaries (collectively
“Tuesday Morning” or the “Company”) today announced that the U.S.
Bankruptcy Court for the Northern District of Texas has confirmed
the Company’s Plan of Reorganization (the “Plan”). As a result,
Tuesday Morning expects to successfully emerge from Chapter 11
protection by the end of December after it has satisfied the
conditions to the effectiveness of the Plan.
“We are pleased to have reached this critical
milestone that sets the stage for our emergence as a stronger, more
streamlined business,” stated Steve Becker, Chief Executive
Officer. “Throughout our reorganization, we have continued to work
to deliver on our obligations to our stakeholders and partners. I
want to thank our associates, customers, vendors, creditors, and
equity investors for their steadfast support during this period
which will allow us to operate our business going forward. We look
forward to Tuesday Morning’s future long-term success.”
Upon emergence, Tuesday Morning expects to have
sufficient liquidity to support ongoing operations and strategic
initiatives. Under the terms of the Plan, the capital structure of
the reorganized company is expected to consist of a $110 million
asset-backed lending credit facility which will provide working
capital and $25 million in principal amount of a new senior
subordinated note. Additionally, approximately $40 million in cash
proceeds from an upcoming backstopped rights offering will be
applied to pay creditors under the Plan.
Additional Information Court
filings and other documents related to the court-supervised process
are available at https://dm.epiq11.com/TuesdayMorning, or by
calling the Company’s claims agent, Epiq Corporate Restructuring
LLC, at (855) 917-3492 (or +1 (503) 520-4429 for international
calls) or sending an email to
TuesdayMorningInfo@epiqglobal.com.
Haynes and Boone, LLP is serving as legal
advisor, Miller Buckfire, a Stifel company is serving as financial
advisor, and AlixPartners LLP is serving as restructuring advisor
to Tuesday Morning.
About Tuesday MorningTuesday Morning
Corporation (OTC:TUESQ) is one of the original off-price
retailers specializing in name-brand, high-quality products for the
home, including upscale home textiles, home furnishings,
housewares, gourmet food, toys and seasonal décor, at prices
generally below those found in boutique, specialty and department
stores, catalogs and on-line retailers. Based in Dallas,
Texas, the Company opened its first store in 1974 and currently
operates 490 stores in 40 states. More information and a list
of store locations may be found on the Company’s website
at www.tuesdaymorning.com.
Cautionary Statement Regarding Forward-Looking
StatementsThis press release contains forward-looking
statements within the meaning of the federal securities laws, which
are based on management’s current expectations, estimates and
projections. Forward looking statements also include
statements regarding the Company’s plans with respect to the
emergence from its Chapter 11 proceedings, the Company’s expected
liquidity and capital structure following emergence, and other
statements regarding the Company’s future operations, performance
and prospects. These forward-looking statements are subject
to risks and uncertainties that could cause the Company’s actual
results to differ materially from the expectations expressed in the
Company’s forward-looking statements. These risks,
uncertainties and events also include, but are not limited to, the
following: the Company’s ability to complete its proposed financing
transactions, including the new ABL facility, the senior
subordinated notes, the sale of the Properties and the rights
offering; the Company’s ability to satisfy all of the conditions to
effectiveness of the Plan; the effects and length of the novel
coronavirus pandemic; changes in economic and political conditions
which may adversely affect consumer spending; our ability to
identify and respond to changes in consumer trends and preferences;
our ability to mitigate reductions of customer traffic in shopping
centers where our stores are located; our ability to continuously
attract buying opportunities for off-price merchandise and
anticipate consumer demand; our ability to obtain merchandise on
varying payment terms; our ability to successfully manage our
inventory balances profitably; our ability to effectively manage
our supply chain operations; loss of, disruption in operations of,
or increased costs in the operation of our distribution center
facility; unplanned loss or departure of one or more members of our
senior management or other key management; increased or new
competition; our ability to maintain and protect our information
technology systems and technologies and related improvements to
support our growth; increases in fuel prices and changes in
transportation industry regulations or conditions; increases in the
cost or a disruption in the flow of our imported products; changes
in federal tax policy including tariffs; the success of our
marketing, advertising and promotional efforts; our ability to
attract, train and retain quality employees in appropriate numbers,
including key employees and management; increased variability due
to seasonal and quarterly fluctuations; our ability to protect the
security of information about our business and our customers,
suppliers, business partners and employees; our ability to comply
with existing, changing and new government regulations; our ability
to manage risk to our corporate reputation from our customers,
employees and other third parties; our ability to manage litigation
risks from our customers, employees and other third parties; our
ability to manage the risk associated with product liability claims
and product recalls; the impact of adverse local conditions,
natural disasters or other events; our ability to manage the
negative effects of inventory shrinkage; our ability to manage
unexpected costs related to our insurance programs; increased costs
or exposure to fraud or theft resulting from payment card industry
related risks and regulations; our ability to maintain an effective
system of internal controls over financial reporting; impacts from
the delisting of our common stock from the The Nasdaq Stock Market;
and the other factors listed in the Company’s filings with the
Securities and Exchange Commission. Except as may be required
by law, the Company disclaims any obligation to update any
forward-looking statements to reflect events or circumstances after
the date on which the statements were made or to reflect the
occurrence of unanticipated events.
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