Tuesday Morning Announces Confirmation of Plan of Reorganization

Emergence Expected by End of December

Court Approves Plan for a Stronger and More Streamlined Structure

Tuesday Morning and certain of its subsidiaries (collectively “Tuesday Morning” or the “Company”) today announced that the U.S. Bankruptcy Court for the Northern District of Texas has confirmed the Company’s Plan of Reorganization (the “Plan”). As a result, Tuesday Morning expects to successfully emerge from Chapter 11 protection by the end of December after it has satisfied the conditions to the effectiveness of the Plan.

“We are pleased to have reached this critical milestone that sets the stage for our emergence as a stronger, more streamlined business,” stated Steve Becker, Chief Executive Officer. “Throughout our reorganization, we have continued to work to deliver on our obligations to our stakeholders and partners. I want to thank our associates, customers, vendors, creditors, and equity investors for their steadfast support during this period which will allow us to operate our business going forward. We look forward to Tuesday Morning’s future long-term success.”

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.

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 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 (OTC:TUESQ) 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 490 stores in 40 states.  More information and a list of store locations may be found on the Company’s website at www.tuesdaymorning.com.