Tuesday Morning emerged from Chapter 11, it announced Monday, with financial backing from J.P. Morgan, Wells Fargo, and Bank of America.
The Dallas-based off-price home goods retailer filed for bankruptcy in May due to challenges from the COVID-19 pandemic. The ascent from Chapter 11 is possible with a $110 million asset-backed lending facility provided by J.P. Morgan, Wells Fargo, and Bank of America, according to a release.
The release said the additional liquidity will support Tuesday Morning’s ongoing operations and strategic initiatives. At the time it filed for bankruptcy, it had 687 stores that it planned to close in phases to help deal with the fallout from the lockdown. It’s emerging with 490 of its best-performing stores.
The retailer also announced with the reorganization a “significant new institutional ownership,” while allowing its shareholders to participate in an upcoming $40 million in cash proceeds.
Haynes and Boone, Miller Buckfire and AlixPartners served as legal, financial and restructuring advisors to Tuesday Morning, respectively.