Off-price retailer Tuesday Morning said it will emerge from Chapter 11 bankruptcy protection by the end of December.
The announcement follows the approval of the company’s Plan of Reorganization by the United States Bankruptcy Court for the Northern District of Texas.
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.
“We are pleased to have reached this critical milestone that sets the stage for our emergence as a stronger, more streamlined business,” said Steve Becker, Tuesday’s Mornings CEO. “We look forward to Tuesday Morning’s future long-term success.”
Tuesday Morning is based in Dallas, Tex., and opened its first store in 1974. The company currently operates 490 stores in 40 states and carries a broad selection of brand-name home products including kitchenware at deep discounts.