EMPLOYEE FAQ:


1. What did Tuesday Morning announce?

  • COVID-19 is one of the most serious challenges in our company’s 46-year history. We closed our doors for two months, which stopped revenues and severely impacted us financially and operationally.
  • As a result, Tuesday Morning filed for Chapter 11 bankruptcy protection.
  • This process will allow the Company to reduce its outstanding liabilities and strengthen its overall financial position.
  • We plan to emerge from this process in early fall 2020 and will continue to serve our customers during this time and beyond.

2. What is Chapter 11?

  • Chapter 11 is a section of the U.S. Bankruptcy Code that allows companies to reorganize their finances and continue to operate at the same time. The Company is not going out of business.

3. What happens during Chapter 11?

  • First, the Company requested bankruptcy court approval for a new loan to pay its expenses during Chapter 11, so business can continue.
  • Second, upon the filing of a bankruptcy case, an “automatic stay” is created that prevents creditors from collecting money and debts owed before the bankruptcy filing. The automatic stay allows the company to delay certain payments.
  • A major benefit of Chapter 11 is that permits daily operations to continue:
    • Stores will remain operational.
    • Employees will continue to receive their regular wages and benefits.
    • Goods and services provided by vendors after the filing date will be paid for in the “ordinary course of business.”

4. How will Chapter 11 affect day-to-day operations?

  • Business will continue while we are in the bankruptcy process and, over the coming weeks, we will continue to re-open stores that were closed due to COVID-19, as planned and as state and local mandates allow.
  • We are committed to restructuring Tuesday Morning to make it as strong and healthy as it can possibly be.
  • We look forward to continuing to serve our dedicated, loyal, and enthusiastic customers as one of the leading home goods off-price retailers.

5. Will Tuesday Morning close stores?

  • The reorganization plan includes closing a number of underperforming stores, so we can focus our resources on our highest performing locations in our most productive markets. The store closure process will take place over the summer.
  • Additionally, we will continue to re-open stores that were closed due to COVID-19, as planned and as state and local mandates allow.
  • To date, over 80% of stores have re-opened.

6. Why is Tuesday Morning closing 230 store locations?

  • A realignment of our store strategy will allow us to focus our resources on our highest performing stores in our most productive markets. This means we can provide greater value to our customers by sending the best deals to a smaller number of stores.
  • We are very focused on returning Tuesday Morning to its roots as a healthy and profitable off-price retailer.

7. What does this mean for me? Will I lose my job?

  • We are continuing to operate as usual for the time being. If your store is currently open, please report to work as usual.
  • We will close a number of underperforming stores, so we can focus our resources on our highest performing locations in our most productive markets.
  • We are working to provide greater value to our customers by sending the best deals to a smaller number of stores.
  • The store closure process will take place over the summer. We know uncertainty is hard, but we will continue to communicate with you as we go through this process.

8. Will I get paid and receive my benefits?

  • Yes, we expect to continue providing active employees their usual pay and benefits, including medical benefits.
  • You will receive your paychecks in the same manner as you always have. For any questions you may have, please contact benefits@TuesdayMorning.com.

9. Will I continue to be eligible for paid overtime?

  • Yes, we will continue to pay for all time worked, including overtime to hourly and non-exempt employees.

10. Can I still use my vacation and sick time?

  • We expect that employees will be able to continue to use vacation and sick time and that vacation will continue to be available based on Company policies.

11. Will Tuesday Morning continue the company-match for its 401(k) plans?

  • There have been no changes to the Company match.
  • The Company has petitioned the court to make the match payment when it comes due.

12. Is the Tuesday Morning 401(k) Plan protected from creditors’ claims now that Tuesday Morning has filed for Chapter 11?

  • Yes. Federal bankruptcy laws protect these funds from creditors’ claims. As always, the value of the various investment options in the 401(k) plan can fluctuate based on market conditions.

13. Will the existing leadership and Board of Directors remain in place?

  • Yes, the current management team and Board of Directors will remain in place and continue to be committed to the business.

14. When does Tuesday Morning expect to complete the Chapter 11 process?

  • We plan to emerge from this process by early fall 2020 in a stronger position as one of the leading home goods off-price retailers.