$35 Million Investment Fortifies Tuesday Morning’s Balance Sheet and Positions the Company to Execute New Omni-Channel Growth Strategy
New, Exclusive Channel Licensing Agreement Enables the Company to Sell Pier 1 Products and Launch Pier 1 Store-in-Stores, Driving Additional Foot Traffic to Tuesday Morning Stores
Retail Ecommerce Ventures and Ayon Capital Designate Majority of Tuesday Morning’s Board, with Tai Lopez and Dr. Alex Mehr Serving as Co-Executive Chairs of the Board
DALLAS, Sept. 21, 2022 (GLOBE NEWSWIRE) — Tuesday Morning Corporation (NASDAQ:TUEM) (“Tuesday Morning” or the “Company”), a leading off-price retailer of home goods and décor, today announced the closing of its strategic transaction (the “Transaction”) to secure $35 million in convertible debt financing. The Transaction includes a $32 million investment from a special purpose vehicle (“SPV”) formed by Ayon Capital, LLC (“Ayon”) and Retail Ecommerce Ventures LLC (“REV”), which is the owner of a diverse portfolio of consumer brands that includes Pier 1 Imports (“Pier 1”), Linens ‘n Things, Stein Mart and Modell’s Sporting Goods. The Transaction also includes $3 million provided by certain members of Tuesday Morning’s management team, including Chief Executive Officer Fred Hand.
We believe the closing of the Transaction provides Tuesday Morning with sufficient liquidity to pay down creditor and supplier obligations and sufficient liquidity to support operations moving forward.
Tuesday Morning intends to establish a dynamic online presence and execute a digital strategy for new customer acquisition to complement the Company’s 487 stores. Tuesday Morning will now have access to REV’s fulfillment network, systems, technology and website development capabilities, which will support the Company’s omni-channel offering and operations. The Company also plans to leverage a new, exclusive channel licensing agreement with REV to start selling Pier 1 products and launch Pier 1 outposts in select stores.
REV’s founders, Tai Lopez and Dr. Alex Mehr, commented:
“There is tremendous long-term opportunity for Tuesday Morning in the home goods and décor category, particularly as more homeowners and renters embrace online channels. We believe that being able to offer a high-touch omni-channel experience will become a differentiator for Tuesday Morning in the years to come. As a result of our investment and differentiated technology capabilities, we intend to help Tuesday Morning establish an ecommerce presence for the first time and seize ‘white space’ in the Company’s growing addressable market. Our experienced and proven team, which has already identified strong synergies with our Pier 1 brand and its product catalogue, sees a viable path to unlocking enhanced value for all of the Company’s shareholders. We look forward to working with management and pursuing a path towards long-term profitable growth.”
Sidd Pagidipati, Chairman of Ayon, added:
“Fred and the Tuesday Morning team have excelled in providing their customers with high-quality off price goods, and we are very pleased to support their continued efforts to generate long-term sustainable growth in the home goods category. We look forward to working with Tai, Alex and the REV team, who have developed significant experience building and growing ecommerce brands, to leverage Tuesday Morning’s unique value offering in the home goods category and …