Off-price retailer Tuesday Morning is getting a $35 million capital boost from an investor group led by Retail Ecommerce Ventures (REV), the parent of Pier 1 and SteinMart. The deal was announced Monday (Sept.12).
Tuesday Morning has 10 store locations in Arkansas, two in Northwest, one in Fort Smith, one in Jonesboro and in Searcy with five located in central Arkansas.
The deal follows news that Tuesday Morning’s could lose $29 million this calendar year. REV is providing Tuesday Morning with $32 million in the form of convertible debt from a special purpose loan and key executives from Tuesday Morning are contributing $3 million. REV, along with co-investor Avon Capital will control a majority of Tuesday Morning board seats.
The deal is expected to close later this month. When completed, Pier 1 will be allowed to sell its products in brick and mortar Tuesday Morning stores. Pier 1 shuttered all of its brick and mortar stores following bankruptcy in 2020 and now only sells products online.
Tuesday Morning had hoped to rebuild its business upon its exit from bankruptcy in 2021 with a new slate of executives but the losses have continued to mount. The release said the funds from the REV and investors will shore up the retailer’s balance sheet and help to retire part of the company’s existing debt.
With the deal, Tuesday Morning, which is largely focused on home goods, will get access to products from REV’s Pier 1 brand, along with digital and e-commerce capabilities as Tuesday Morning looks to build out an online presence. While the board will change, Tuesday Morning’s management team will remain in place, the company said.