{"id":687566,"date":"2022-09-21T09:42:38","date_gmt":"2022-09-21T13:42:38","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/tuesday-morning-announces-closing-of-strategic-investment-from-group-led-by-retail-ecommerce-ventures-the-owner-of-pier-1-imports-and-top-consumer-brands\/"},"modified":"2022-09-21T09:42:38","modified_gmt":"2022-09-21T13:42:38","slug":"tuesday-morning-announces-closing-of-strategic-investment-from-group-led-by-retail-ecommerce-ventures-the-owner-of-pier-1-imports-and-top-consumer-brands","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/tuesday-morning-announces-closing-of-strategic-investment-from-group-led-by-retail-ecommerce-ventures-the-owner-of-pier-1-imports-and-top-consumer-brands\/","title":{"rendered":"Tuesday Morning Announces Closing of Strategic Investment from Group Led by Retail Ecommerce Ventures, the Owner of Pier 1 Imports and Top Consumer Brands"},"content":{"rendered":"
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\n $35 Million Investment Fortifies Tuesday Morning\u2019s Balance Sheet and Positions the Company to Execute New Omni-Channel Growth Strategy<\/em>
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\n 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 <\/em>
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\n Retail Ecommerce Ventures and Ayon Capital Designate Majority of Tuesday Morning\u2019s Board, with Tai Lopez and Dr. Alex Mehr Serving as Co-Executive Chairs of the Board <\/em>
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DALLAS, Sept. 21, 2022 (GLOBE NEWSWIRE) — Tuesday Morning Corporation (NASDAQ: TUEM) (\u201cTuesday Morning\u201d or the \u201cCompany\u201d), a leading off-price retailer of home goods and d\u00e9cor, 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 (\u201cSPV\u201d) formed by Ayon Capital, LLC (\u201cAyon\u201d) and Retail Ecommerce Ventures LLC (\u201cREV\u201d), which is the owner of a diverse portfolio of consumer brands that includes Pier 1 Imports (\u201cPier 1\u201d), Linens \u2018n Things, Stein Mart and Modell\u2019s Sporting Goods. The Transaction also includes $3 million provided by certain members of Tuesday Morning\u2019s management team, including Chief Executive Officer Fred Hand.<\/p>\n

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.<\/p>\n

Tuesday Morning intends to establish a dynamic online presence and execute a digital strategy for new customer acquisition to complement the Company\u2019s 487 stores. Tuesday Morning will now have access to REV\u2019s fulfillment network, systems, technology and website development capabilities, which will support the Company\u2019s 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.<\/p>\n

REV\u2019s founders, Tai Lopez and Dr. Alex Mehr, commented:<\/p>\n

\u201cThere is tremendous long-term opportunity for Tuesday Morning in the home goods and d\u00e9cor 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 \u2018white space\u2019 in the Company\u2019s 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\u2019s shareholders. We look forward to working with management and pursuing\u00a0a\u00a0path towards long-term profitable\u00a0growth.\u201d<\/p>\n

Sidd Pagidipati, Chairman of Ayon, added:<\/p>\n

\u201cFred 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\u2019s unique value offering in the home goods category and drive the Company\u2019s digital evolution.\u201d<\/p>\n

Mr. Hand concluded:<\/p>\n

“We are very pleased to have completed this transaction, which strengthens Tuesday Morning\u2019s balance sheet and positions us to drive deeper connections and engagement with our customers. We look forward to reenergizing and refocusing our efforts on our strategic growth initiatives, including DC network design, new store growth and IT enhancements. We believe that developing a new digital platform will help us create additional touch points with our customers, and we look forward to working with Alex, Tai and Sidd to support a seamless shopping experience across both ecommerce and brick-and-mortar channels. I would also like to thank the members of our Board, who have guided the Company diligently through a challenging period for our industry and devoted significant time and effort to supporting our team.\u201d<\/p>\n

\n Newly Reconstituted Board of Directors<\/strong>\n <\/p>\n

As previously announced, the Transaction results in a change in control of the Company. Tuesday Morning\u2019s nine-member Board of Directors (the \u201cBoard\u201d) will be reconstituted to be comprised of:<\/p>\n