Tuesday Morning Corporation Secures $25 Million of Additional Financing to Support Financial and Operational Reorganization

Tuesday Morning Corporation (NASDAQ: TUES) today announced that the Company has obtained a commitment from BRF Finance Co., LLC, an affiliate of B. Riley Financial, Inc. (NASDAQ:RILY) (“B. Riley”), for $25 million of debtor-in-possession (“DIP”) financing as required by the Company’s current $100-million DIP agreement with its existing lender group. With this commitment, the Company has secured commitments for a total of $125 million to support the continuity of operations during Chapter 11 proceedings.

As previously announced, due to the immense strain the COVID-19 pandemic and related store closures put on the Company, Tuesday Morning is pursuing a financial and operational reorganization designed to allow the Company to reduce its outstanding liabilities and strengthen its overall financial position.

On May 27, 2020, Tuesday Morning filed voluntary petitions for protection under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas – Dallas Division to pursue this reorganization. The Company expects to emerge from Chapter 11 by early fall 2020.

Steve Becker, Chief Executive Officer, stated, “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. 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 and as one of the leading home goods off-price retailers.”

The DIP financing with B. Riley Financial, Inc. remains subject to a number of conditions, including Bankruptcy Court approval.

Additional Information

Court filings and other documents related to the court-supervised process are available at https://dm.epiq11.com/TuesdayMorning, or by calling the Company’s claims agent, Epiq Corporate Restructuring LLC, at (855) 917-3492 (or +1 (503) 520-4429 for international calls) or by sending an email to TuesdayMorningInfo@epiqglobal.com.

Haynes and Boone, LLP is serving as legal advisor, Miller Buckfire, a Stifel company, is serving as financial advisor, and AlixPartners, LLP is serving as restructuring advisor to Tuesday Morning.

About Tuesday Morning

Tuesday Morning Corporation (NASDAQ: TUES) is one of the original off-price retailers specializing in name-brand, high-quality products for the home, including upscale home textiles, home furnishings, housewares, gourmet food, toys and seasonal décor, at prices generally below those found in boutique, specialty and department stores, catalogs and on-line retailers.  Based in Dallas, Texas, the Company opened its first store in 1974 and currently operates 687 stores in 39 states.  More information and a list of store locations may be found on the Company’s website at www.tuesdaymorning.com.

About B. Riley Financial, Inc.

B. Riley Financial (NASDAQ:RILY) provides collaborative financial services tailored to fit the capital raising and business advisory needs of public and private companies and high-net-worth individuals. B. Riley operates through several wholly owned subsidiaries which offer complementary end-to-end capabilities spanning investment banking and institutional brokerage, private wealth and investment management, corporate advisory, restructuring, due diligence, forensic accounting and litigation support, appraisal and valuation, and auction and liquidation services. Certain registered affiliates of B. Riley originate and underwrite senior secured loans for asset-rich companies. B. Riley also makes proprietary investments in companies and assets with attractive return profiles. BRF Finance Co., LLC is a subsidiary of B. Riley Financial. For more information about B. Riley and its affiliated companies, visit www.brileyfin.com.

Media Contacts

Allison McLarty
Edelman
646-270-6797

Ted McHugh
Edelman
212-819-4875
TuesdayMorning@edelman.com