Tuesday Morning shareholder renews call for official equity committee

By Caroline Salls

Pittsburgh, Aug. 18 – Tuesday Morning Corp. shareholder Jeremy Blum is asking the U.S. Bankruptcy Court for the Northern District of Texas to order an appointment of an official committee of equity security holders for the company’s Chapter 11 case, according to a motion filed Monday.

Blum said a previous motion for appointment of an equity committee was denied by the court on July 8, but that ruling “left a door open” for a renewed motion if significant new evidence could be found.

Blum said in Monday’s motion that “significant new evidence has arisen since that date proving both solvency and lack of oversight by the board of directors of Tuesday Morning.”

Specifically, Blum said despite a drawdown of inventory, Tuesday’s Morning’s revenues in June significantly exceeded projections.

Blum said Covid-19 is actually benefiting the company because “people forced to stay at home are buying housewares more than before.”

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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