Tuesday Morning gets additional $25 million DIP financing commitment

By Caroline Salls

Pittsburgh, June 4 – Tuesday Morning Corp. has obtained a commitment from B. Riley Financial, Inc. affiliate BRF Finance Co., LLC for $25 million of debtor-in-possession financing, as required by the company’s current $100-million DIP financing agreement with its existing lender group, according to a news release.

With this commitment, the company said it has secured commitments for a total of $125 million to support the continuity of operations during Chapter 11 proceedings.

As previously reported, because of the strain the Covid-19 pandemic and related store closures, Tuesday Morning is pursuing a financial and operational reorganization designed to allow it to reduce its outstanding debt and strengthen its overall financial position.

The company said it expects to emerge from Chapter 11 by early fall.

“We look forward to partnering with B. Riley going forward as we work hard to reorganize the company so it is as strong as it can possibly be,” chief executive officer Steve Becker said in the release.

“This additional capital is an important milestone as it provides significant liquidity for us to continue operations throughout the reorganization process. It also further validates our plan to emerge as a healthier business.”

The DIP financing remains subject to a number of conditions, including approval by the U.S. Bankruptcy Court for the Southern District of Texas.

Haynes and Boone, LLP is serving as legal adviser, Miller Buckfire is serving as financial adviser, and AlixPartners, LLP is serving as restructuring adviser to Tuesday Morning.

Tuesday Morning is a discount, off-price retailer based in Dallas. The company filed bankruptcy on May 27 under Chapter 11 case number 20-31476.

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