Tuesday Morning equity committee to be appointed for sale/plan process

By Caroline Salls

Pittsburgh, Sept. 18 – The U.S. Trustee overseeing Tuesday Morning Corp.’s Chapter 11 case has been ordered to immediately appoint an official committee of equity security holders for the case, according to an order filed Friday with the U.S. Bankruptcy Court for the Northern District of Texas.

Last month, shareholder Jeremy Blum filed a motion asking the court to order appointment of the committee. Blum said a previous motion for appointment of an equity committee was denied by the court on July 8, but that ruling “left a door open” for a renewed motion if significant new evidence could be found.

Blum said in his motion that “significant new evidence has arisen since that date proving both solvency and lack of oversight by the board of directors of Tuesday Morning.”

Specifically, Blum said despite a drawdown of inventory, Tuesday’s Morning’s revenues in June significantly exceeded projections.

Blum said Covid-19 is actually benefiting the company because “people forced to stay at home are buying housewares more than before.”

According to Friday’s order, Tuesday Morning said during a Sept. 16 hearing that it intends to file a motion for approval of asset sale procedures no later than Sept. 23 and to request that a sale hearing be scheduled for the last week of October. The company also expects to file a plan and disclosure statement by Sept. 23 that will serve as an alternative to the sale process.

“Given the speed with which the debtors plan to move forward with both a plan and sale process and the level of interest that there appears to be from potential bidders for the debtors’ assets, the court believes it is necessary to appoint an equity committee at this time to ensure that equity holders are able to participate meaningfully in the sale and plan processes in a streamlined and efficient way,” the order said.

Tuesday Morning is a discount, off-price retailer based in Dallas. The company filed bankruptcy on May 27 under Chapter 11 case number 20-31476.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.