Business In News
Tuesday Morning has received a $32 million investment from Retail Ecommerce Ventures (REV), the parent company of Pier 1 Imports, Linens ‘n Things, Stein Mart and other brands, and Ayon Capital. The funding, along with $3 million in convertible debt financing from certain Tuesday Morning leaders including CEO Fred Hand, will help the troubled retailer implement an omnichannel turnaround plan.
The deal will give Tuesday Morning access to REV’s fulfillment network, infrastructure, systems and technology and ecommerce capabilities. Additionally, Tuesday Morning will enter into a new licensing agreement that will allow the Company to sell Pier 1 products, and Tuesday Morning’s board of directors will be reconstituted to give REV and Ayon designees a majority.
“We believe this milestone transaction will strengthen our financial position and provide sufficient liquidity to execute on our strategic plan, allowing us to maintain strong relationships with our valued partners and elevate offerings for our customers,” said Hand in a statement. “We look forward to the partnership with REV and Ayon.”
Tuesday Morning was reportedly on the brink of going bankrupt for the second time since 2020, according to The Dallas Morning News. The last bankruptcy resulted in the closure of approximately 230 of its 687 stores. Hopes to use the promising results at stores that reopened following COVID lockdowns (which experienced 10% higher year-over-year sales compared to late April through late May 2019) as a springboard to achieve future profitability failed to materialize.
REV has been extremely active since 2020, when it acquired Pier 1, Stein Mart and Modell’s and gave them second lives as pure ecommerce brands. The holding company’s pace of acquisitions slowed after the initial wave of bankruptcies caused by COVID, but it acquired UK-based luxury brand Ralph & Russo Limited in July 2021.