Tuesday Morning Corporation files for Chapter 11Christian Fernsby ▼ | May 27, 2020
Tuesday Morning Corporation announced it will pursue financial and operational reorganization designed to allow the Company to reduce its outstanding liabilities and strengthen its overall financial position.
Bankruptcy Tuesday Morning
Topics: Tuesday Morning Corporation
To pursue this reorganization, 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.
Ultimately, this process will provide Tuesday Morning with an opportunity to continue navigating the coronavirus pandemic and emerge as a stronger company by early fall 2020.
To enable the Company to continue operations during the reorganization process, the Company has obtained a commitment from its existing lender group to provide $100 million of debtor-in-possession (DIP) financing.
As required by the DIP agreement, the Company is required to obtain a commitment for up to $25 million of additional financing, which the Company is negotiating. ■