Tuesday Morning has been sold to Retail Ecommerce, which also owns Pier 1 Imports


Dallas-based closeout retailer Tuesday Morning, which was on the verge of filing bankruptcy for the second time in two years, has secured $35 million in new funding.

The transaction will result in a change of control with new board members, according to the company’s press release.

The retailer said late Friday that Retail Ecommerce Ventures and Ayon Capital have agreed to lend Tuesday Morning $32 million in convertible debt. Another $3 million in convertible financing is coming from Tuesday Morning management, including CEO Fred Hand.

As part of the deal, Tuesday Morning will enter into a licensing agreement to sell Pier 1 Imports products in its stores.

Retail Ecommerce owns several retail brands that have gone out of business, including Pier 1, and it operates the brands as online stores. Other retail names it owns include RadioShack, Stein Mart, Linens ‘n Things and Modell’s Sporting Goods. The company was founded in 2019.

Retail Ecommerce said that shoppers expect retailers to have online stores and it can offer Tuesday Morning the expertise, technology and the Pier 1 brand to accomplish that.

Tuesday Morning has stayed out of the e-commerce business because its inventory changes frequently and comes in limited quantities because it buys closeout items from manufacturers and other retailers.

The company’s stock closed Friday at 28 cents a share and will continue to trade. The terms of the transaction don’t require shareholder approval, the company said. It’s not clear what existing shareholders will be paid, but the company said a reverse stock split is expected.

Tuesday Morning was one of several retailers that filed for bankruptcy during the pandemic. It actually did better than expected after closing unprofitable stores and emerged with 490 locations in 40 states. More recently, though, it struggled with inflation and supply chain issues and was posting quarterly losses. Tuesday Morning competes with retailers with deeper pockets such as Burlington, TJ Maxx and Big Lots for closeout merchandise.

The transaction is expected to close on Sept. 19.

Twitter: @MariaHalkias

Looking for more retail coverage? Click here to read all retail news and updates. Click here to subscribe to D-FW Retail and more newsletters from The Dallas Morning News.





Read More: Tuesday Morning has been sold to Retail Ecommerce, which also owns Pier 1 Imports

2022-09-09 16:27:38

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More