Tuesday Morning Corporation, a leading off-price retailer of home goods and décor, announced that it has entered into an agreement to secure $32 million in convertible debt financing from a special purpose vehicle (“SPV”) formed by Retail Ecommerce Ventures LLC (“REV”), the owner of a diverse portfolio of consumer brands that includes Pier 1 Imports (“Pier 1”), Linens ‘n Things, Stein Mart, Modell’s Sporting Goods, and Ayon Capital, LLC (“Ayon”). Additionally, certain members of Tuesday Morning’s management team, including Chief Executive Officer Fred Hand, are providing $3 million in convertible debt financing.
The proceeds from the parties’ investments (collectively, the “Transaction”) are expected to strengthen Tuesday Morning’s balance sheet and allow it to begin executing an omni-channel strategy, which will now include an ecommerce presence and digital activations to complement the Company’s store footprint over the long-term. The Transaction’s terms also provide for the following:
Tuesday Morning will have access to REV’s fulfillment network, infrastructure and systems, and technology and ecommerce capabilities;
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 (the “Board”) will be reconstituted, with REV and Ayon having their designees comprise a majority of the Board.
REV, founded by Tai Lopez and Alex Mehr in 2019, has significant experience acquiring retail brands and partnering with management teams to deploy ecommerce-focused strategies. Examples include Pier 1, Linens ‘n Things, Stein Mart and RadioShack.
Mr. Hand commented:
“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. We look forward to the partnership with REV and Ayon.”