Group, which includes Retail Ecommerce Ventures, Ayon Capital and existing management, including CEO Fred Hand, intends to invest $35 million through a convertible debenture transaction
The investment is expected to strengthen Tuesday Morning’s capital position and provide strategic advantages across Retail Ecommerce Ventures’ fulfillment network, systems and technology
The terms also include a license agreement that allows Tuesday Morning to sell Pier 1 products
Transaction results in “change of control” Tuesday morning, with Retail Ecommerce Ventures and Ayon Capital capturing a majority of the board
DALLAS, Sept. 09, 2022 (GLOBE NEWSWIRE) – Tuesday Morning Corporation TUEM (“Tuesday Morning” or the “Company”), a leading off-price retailer of homewares and décor, announced today that it has entered into an agreement to secure $32 million of convertible debt financing from a special purpose entity (” SPV”) has completed. ) founded by Retail Ecommerce Ventures LLC (“REV”), owner of a diverse portfolio of consumer brands including Pier 1 Imports (“Pier 1″), Linens ‘n Things, Stein Mart, Modell’s Sporting Goods and Ayon Capital, LLC (” Ayon”). In addition, certain members of Tuesday Morning’s management team, including Chief Executive Officer Fred Hand, are providing $3 million in convertible debentures.
Proceeds from the parties’ investments (collectively, the “Transaction”) are expected to strengthen Tuesday Morning’s balance sheet and allow the company to begin executing an omni-channel strategy that now includes an e-commerce presence and digital enablements to complement the company’s business footprint over the long term. The terms of the transaction also provide for the following:
- Tuesday Morning will have access to REV’s fulfillment network, infrastructure and systems, technology and e-commerce capabilities;
- Tuesday Morning will finalize a new license agreement allowing the Company to sell Pier 1 products and;
- Tuesday Morning’s board of directors (the “Board of Directors”) will…
