Tuesday Morning creditors clamor for share of not-enough proceeds

Chicago, July 7 – Several creditors of Tuesday Morning, Inc. came forward to argue the merit of a more senior claim than their proverbial neighbor after the debtors sold substantially all of their assets but lack even enough funds to pay administrative expense claims, according to multiple filings on the court docket for the case with the U.S. Bankruptcy Court for the Northern District of Texas.

The debtor noted in an omnibus response that discovery is still underway and claims may be supported by information that would serve to reduce the amount of subject sale proceeds other parties may be entitled to.

Still to be determined, to some extent, is the seniority of competing claims.

As previously reported, the debtor is seeking conversion of the Chapter 11 bankruptcy case to Chapter 7. The company was aiming for conversion by July 31.

Tuesday Morning is a discount off-price retailer based in Dallas. The company began its second Chapter 11 bankruptcy case on Feb. 14 under case number 23-90001. The previous case started on May 27, 2020 under case number 20-31476. The company exited that round of bankruptcy on Dec. 31, 2020.

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