Bankruptcy exit by Tuesday Morning confirmed

Tuesday Morning, the off-price retailer founded by Lloyd Ross in the mid-1970s, has emerged from Chapter 11 bankruptcy. The company, known for its jumbled flea market-like stores, has faced significant challenges in recent years, but is now looking towards a brighter future with the support of major banks and a planned rights offering for shareholders.

The company's financial struggles became evident in 2020, as it was losing money and struggling to compete against TJX Cos. and Ross Stores. Operating losses nearly doubled during the same period, and net cash flow remained negative through October and November. These financial difficulties were further exacerbated by the pandemic, which brought near-total collapse of revenue for Tuesday Morning.

However, the company has received a lifeline in the form of a $110 million lending facility from J.P. Morgan, Wells Fargo, and Bank of America. This financing, along with a planned rights offering for shareholders worth $40 million, is expected to help Tuesday Morning regain its footing.

The investment firm supporting Tuesday Morning in its financing after the Chapter 11 process and participating in the planned stock issuance is not mentioned in the provided search results.

Tuesday Morning started with its first permanent store and expanded to 60 locations in five years. By 2018, the company was making $1 billion in sales and operating 700 locations across the United States. Today, its stores are primarily located in Texas, Florida, California, Virginia, Georgia, and North Carolina.

Despite the challenges it has faced, Tuesday Morning played a significant role in pioneering the modern off-price model. The company filled a Dallas warehouse with leftover inventory from brands and retailers and invited the public to shop its discount prices, a practice that has since become common in the off-price retail industry.

In a strategic move, Tuesday Morning opted to go forward on its own after considering a potential sale in bankruptcy. The company currently operates 490 stores, down from 687 stores when it filed for bankruptcy last May. Sales for the period ending Sept. 30 remained nearly 28% down from 2019 levels, but the company is hopeful for a strong recovery.

With its exit from bankruptcy and the support of major banks and shareholders, Tuesday Morning is poised to rebuild and continue its legacy as a pioneer in the off-price retail industry.