Tuesday Morning lands $35M Lifeline from Pier 1 Owner

video

Wall Street’s ESG investing likely a violation of fiduciary duty: Louisiana AG

Louisiana Attorney General Jeff Landry says he’s concerned about ‘woke’ Wall Street banks buying assets at the expense of other investments to enhance their social policy on ‘Cavuto: Coast to Coast.’

Tuesday Morning Corp. landed a $35 million financing deal from the company that controls Pier 1 Imports in a move that will strengthen the discount home-goods retailer's balance sheet.

Dallas-based Tuesday Morning said Friday that as part of the financing deal led by Retail Ecommerce Ventures LLC, the discount retailer will expand its catalog to include Pier 1 Imports merchandise.

MICHAELS HIRING 15K HOLIDAY EMPLOYEES AHEAD OF BUSY RETAIL SEASON

Tuesday Morning management, including Chief Executive Fred Hand, will participate in the financing by purchasing $3 million in junior notes, while Retail Ecommerce and Ayon Capital LLC, a family office focused on healthcare and technology investments, will purchase $32 million in convertible notes.

Building signage for Pier 1 Imports retail store located in Hesperia, California.

BED BATH & BEYOND'S CHALLENGES LINGER AFTER LOAN DEAL

The debt deal will result in a change in control, with Retail Ecommerce and Ayon appointing a majority of Tuesday Morning's board. The Dallas chain was among a handful of retailers that filed for bankruptcy in 2020 after the government mandated stores to shut down in the early stages of the coronavirus pandemic.

Retail Ecommerce, a Miami Beach, Fla.-based brand-licensing company started by serial entrepreneurs Alex Mehr and Taino Lopez, in recent years amassed bankrupt or struggling consumer brands including Pier 1 Imports, Modell's Sporting Goods and Dressbarn.

TickerSecurityLastChangeChange %
TUEMTUESDAY MORNING CORP.0.19-0.09-31.19%

In May, Tuesday Morning reported a net loss of $18.2 million for the fiscal third quarter ended April 2, compared with a year-earlier net loss of $37.1 million. The company said it expected fiscal fourth-quarter same-store sales to decrease 3% to 5% from a year earlier. For the full year, the retailer expects a $26 million to $29 million adjusted loss before interest, taxes, depreciation and amortization.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Tuesday Morning's stock has slid to 21 cents a share from more than $2 a share at the start of the year.

Source: Read Full Article