Tuesday Morning Secures Commitment for Strategic Investment from Group led by Retail Ecommerce Ventures, the Owner of...

DALLAS, Sept. 09, 2022 (GLOBE NEWSWIRE) -- Tuesday Morning Corporation TUEM (Tuesday Morning or the Company), a leading off-price retailer of home goods and dcor, today announced that it has entered into an agreement to secure $32 million in convertible debt financing from a special purpose vehicle (SPV) formed by Retail Ecommerce Ventures LLC (REV), the owner of a diverse portfolio of consumer brands that includes Pier 1 Imports (Pier 1), Linens n Things, Stein Mart, Modell's Sporting Goods, and Ayon Capital, LLC (Ayon). Additionally, certain members of Tuesday Morning's management team, including Chief Executive Officer Fred Hand, are providing $3 million in convertible debt financing.

The proceeds from the parties' investments (collectively, the Transaction) are expected to strengthen Tuesday Morning's balance sheet and allow it to begin executing an omni-channel strategy, which will now include an ecommerce presence and digital activations to complement the Company's store footprint over the long-term. The Transaction's terms also provide for the following:

• Tuesday Morning will have access to REV's fulfillment network, infrastructure and systems, and technology and ecommerce capabilities;
• Tuesday Morning will enter into a new licensing agreement that will allow the Company to sell Pier 1 products, and;
• Tuesday Morning's board of directors (the Board) will be reconstituted, with REV and Ayon having their designees comprise a majority of the Board.

REV, founded by Tai Lopez and Alex Mehr in 2019, has significant experience acquiring retail brands and partnering with management teams to deploy ecommerce-focused strategies. Examples include Pier 1, Linens n Things, Stein Mart and RadioShack.