Off-price home goods retailer Tuesday Morning, which filed for bankruptcy in February 2023, has received $12.5 million in debtor-in-possession (DIP) financing from 1903 Partners LLC together with its affiliates, Gordon Brothers. The additional funding brings Tuesday Morning’s DIP commitments to a total of $27 million.
“After careful deliberation, we have determined that partnering with Gordon Brothers offers Tuesday Morning the best opportunity to save jobs, serve customers and maximize value for the estate,” said Andrew Berger, CEO and Director at Tuesday Morning in a statement. “Notably, this DIP clears the path for the company to continue transforming our operations through the bankruptcy process. In addition to providing liquidity, partnering with Gordon Brothers will allow us to leverage the team’s deep knowledge and experience in the retail sector.”
The current bankruptcy filing, in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth division, is the retailer’s second in approximately three years, following the company’s seeking Chapter 11 protection in May 2020.
Financial results for Q1 2023, which ended Oct. 1, 2022, revealed net sales of $157.1 million, down from $176.9 million for the same period the previous year. Comparable store sales decreased 10.4% compared to Q1 2022. The retailer currently operates 487 stores in 40 states.