VENDOR FAQ:


1. What did Tuesday Morning announce?

  • COVID-19 is one of the most serious challenges in our 46-year history as a company. 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 is designed to reduce the Company’s 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. How will the Chapter 11 process 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 once we emerge from the process.
  • We look forward to continuing to serve our dedicated, loyal, and enthusiastic customers as one of the leading home goods off-price retailers.

3. 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. This process will take place over the summer.
  • Following a thorough and comprehensive store-by-store analysis, we expect to close approximately 230 of our 687 stores.
  • Additionally, as planned, Tuesday Morning will continue to open stores that were closed to due COVID-19, depending on state and local mandates. Chapter 11 will not impact this process.
  • To date, over 80% of stores have re-opened.

4. Why is Tuesday Morning closing approximately 230 store locations?

  • This 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.

5. When does Tuesday Morning expect to complete the court-supervised process?

  • We plan to emerge from this process in a stronger position as soon as early fall 2020.

6. Does Tuesday Morning have sufficient liquidity to meet its obligations?

  • The Company has obtained a commitment from its existing lender group to provide $100 million of debtor-in-possession (DIP) financing, which will support operations during the reorganization process.
  • This includes continued store re-openings, bringing employees back to work, and paying our vendors.

7. Will I be paid for goods and services provided to Tuesday Morning on or after the Chapter 11 filing date?

  • Yes, we intend to pay for all goods and services delivered to us on or after the Chapter 11 filing date of May 27, 2020, in the ordinary course of business on ordinary trade terms. This will be under the supervision of the bankruptcy court, which requires the Company to pay per the terms of post-petition vendor purchase agreements.
  • The Company has obtained a commitment from its existing lender group to provide $100 million of debtor-in-possession (DIP) financing, which will support operations during the reorganization process, including vendor payments.

8. Will I be paid for goods and services provided to Tuesday Morning prior to the Chapter 11 filing date?

  • U.S. bankruptcy law mandates that unpaid debts for goods and services provided prior to the date we filed for Chapter 11 protection (May 27, 2020), also known as “pre-petition claims,” cannot be paid without specific court approval.
  • If you provided goods or services prior to May 27, 2020, and have not been paid, you can file a proof of claim with the Bankruptcy Court. To do that you can contact the hotline maintained by our claims agent, Epiq Corporate Restructuring LLC, at (855) 917-3492 (or +1 (503) 520-4429 for international calls) or send an email to TuesdayMorningInfo@epiqglobal.com.
  • Our claims agent has also set up a website at https://dm.epiq11.com/TuesdayMorning, which includes court documents and other information.

9. If the date on the invoice is after the Chapter 11 filing, does that make my claim a post-petition claim?

  • Please reach out to our claims agent Epiq Corporate Restructuring LLC, at (855) 917-3492 (or +1 (503) 520-4429 for international calls) or send an email to TuesdayMorningInfo@epiqglobal.com to determine the status of your claim based on your contract or arrangement with the Company.

10. Can I go COD / get pre-paid? Renegotiate my contract?

  • Under U.S. bankruptcy law, you are required to continue performing under the terms of our contract, and we expect that you will continue to do so.
  • It is very important and in everyone’s best interests that we continue operating and working with you under normal course terms.
  • We are relying on your cooperation – and the cooperation of all our suppliers and vendors.
  • We appreciate your continued support.

11. How do I file a proof of claim?

  • Tuesday Morning’s claims agent, Epiq Corporate Restructuring LLC, will be providing the appropriate forms once a deadline for filing claims has been set.
  • Proof of claims forms and other information about the claims process will be available at the following website: https://dm.epiq11.com/TuesdayMorning, or by calling the Company’s claims agent, Epiq Corporate Restructuring LLC, at (855) 917-3492 (or +1 (503) 520-4429 for international calls) or sending an email to TuesdayMorningInfo@epiqglobal.com.

12. Is there a critical vendor list?

  • There is no critical vendor list. You are a valued partner to Tuesday Morning, and we look forward to continuing to work together.

13. How can I obtain more information?

14. I provide contract employees to the company. Will I get paid?

  • Payment of your pre-petition amounts may be covered under the wage motion. A copy of the motion is available at the Company’s restructuring website at: https://dm.epiq11.com/TuesdayMorning.