UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

Date of report (Date of earliest event reported): July 20, 2020 

 

 

 

TUESDAY MORNING CORPORATION

(Exact name of registrant as specified in charter)

 

 

 

Delaware 0-19658 75-2398532
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)
     

6250 LBJ Freeway

Dallas, Texas

  75240
(Address of principal executive offices)   (Zip Code)
 
(972) 387-3562
(Registrant’s telephone number, including area code)
 
Not applicable
 (Former name or former address, if changed since last report)

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class  

Trading

Symbol(s)

  Name of each exchange on which registered
Common Stock, par value $0.01 per share   TUESQ*   *

 

*As previously disclosed, on May 27, 2020, Tuesday Morning Corporation (the “Company”) was notified by the Listing Qualifications Department of The Nasdaq Stock Market (“Nasdaq”) that the Company’s common stock would be delisted from Nasdaq as a result of the Company’s filing of a voluntary petition under Chapter 11 of the United States Bankruptcy Code. On June 8, 2020, trading in the Company’s common stock on Nasdaq was suspended, and on July 1, 2020, Nasdaq filed a Form 25 with the SEC to delist the Company’s common stock. The deregistration of the common stock under Section 12(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) will be effective 90 days, or such shorter period as the SEC may determine, after filing of the Form 25. Upon deregistration of the common stock under Section 12(b) of the Exchange Act, the common stock will remain registered under Section 12(g) of the Exchange Act.

 

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company¨ 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

  

 

 

Item 7.01.Regulation FD Disclosure.

 

As previously disclosed, on May 27, 2020 (the “Petition Date”), the Company and certain of its direct and indirect subsidiaries (collectively with the Company, the “Debtors”) filed voluntary petitions (the “Chapter 11 Cases”) under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division (the “Bankruptcy Court”). The Chapter 11 Cases are being administered jointly under the caption “In re: Tuesday Morning Corporation, et. al., Case No. 20-31476-HDH-11.” The Debtors will continue to operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court.

 

On July 20, 2020, the Debtors filed with the Bankruptcy Court their monthly operating report for the period beginning May 27, 2020 and ending June 30, 2020 (the “Monthly Operating Report”). The Monthly Operating Report is attached hereto as Exhibit 99.1 and is incorporated herein by reference. This Current Report on Form 8-K (including the exhibit hereto) (this “Form 8-K”) will not be deemed an admission as to the materiality of any information disclosed herein.

 

The Monthly Operating Report and other documents filed with the Bankruptcy Court are available for inspection at https://dm.epiq11.com/case/tuesdaymorning/info. Documents and other information available on such website are not part of this Form 8-K and are not deemed to be incorporated by reference in this Form 8-K.

 

The information furnished in this Item 7.01 of this Current Report on Form 8-K and the Monthly Operating Report attached hereto as Exhibit 99.1 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of such section, and shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

 

Cautionary Statement Regarding the Monthly Operating Report

 

The Company cautions investors and potential investors not to place undue reliance upon the information contained in the Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of the Company. The Monthly Operating Report is limited in scope, covers a limited time period and has been prepared solely for the purpose of complying with the monthly reporting requirements of the Bankruptcy Court. The Monthly Operating Report was not audited or reviewed by independent accountants, was not prepared in accordance with generally accepted accounting principles, is in a format prescribed by applicable bankruptcy laws or rules, and is subject to future adjustment and reconciliation. There can be no assurance that, from the perspective of an investor or potential investor in the Company’s securities, the Monthly Operating Report is complete. Results set forth in the Monthly Operating Report should not be viewed as indicative of future results.

 

Cautionary Statement Regarding Trading in the Company’s Common Stock

 

The Company cautions that trading in the Company’s common stock during the pendency of the Chapter 11 Cases is highly speculative and poses substantial risks. Trading prices for the Company’s common stock may bear little or no relationship to the actual recovery, if any, by holders of the Company’s common stock in the Chapter 11 Cases.

 

As previously disclosed, the Bankruptcy Court has issued an order designed to assist the Debtors in preserving certain net operating losses and other tax attributes by establishing, among other things, notification and hearing procedures (the “Procedures”) relating to proposed transfers of the Company’s common stock and the taking of worthless stock deductions. The Procedures, among other things, restrict transfers involving, and require notice of the holdings of and proposed transactions by any person or “entity” (as defined the applicable U.S. Treasury Regulations) owning or seeking to acquire ownership of 4.5% or more of the Company’s common stock. The Bankruptcy Court order provides that any actions in violation of the Procedures (including the notice requirements) would be null and void ab initio, and (a) the person or entity making such a transfer would be required to take remedial actions specified by the Debtors to appropriately reflect that such transfer of the Company’s common stock is null and void ab initio and (b) the person or entity making such a declaration of worthlessness with respect to the Company’s common stock would be required to file an amended tax return revoking such declaration and any related deduction to reflect that such declaration is void ab initio.

 

 2 

 

 

Cautionary Notice Regarding Forward-Looking Statements

 

This Current Report on Form 8-K contains forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995, which are based on management’s current expectations, estimates and projections. Forward looking statements also include statements regarding the Company’s plans with respect to the Chapter 11 Cases, the Company’s plan to continue its operations while it works to complete the Chapter 11 process, the Company’s debtor-in-possession financing and other statements regarding the Company’s proposed reorganization, strategy, future operations, performance and prospects. These forward-looking statements are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from the expectations expressed in the Company’s forward-looking statements. These risks, uncertainties and events also include, but are not limited to, the following: the Company’s ability to obtain timely approval of the Bankruptcy Court with respect to motions filed in the Chapter 11 Cases; pleadings filed that could protract the Chapter 11 Cases; the Bankruptcy Court’s rulings in the Chapter 11 Cases, and the outcome of the Chapter 11 Cases generally; the Company’s ability to comply with the restrictions imposed by the terms and conditions of the DIP ABL Credit Agreement, including the Company’s ability to maintain certain minimum liquidity requirements and obtain approval of a plan of reorganization or sale of all of its assets by agreed upon deadlines; the length of time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the Chapter 11 Cases; the Company’s ability to continue to operate its business during the pendency of the Chapter 11 Cases; employee attrition and the Company’s ability to retain senior management and other key personnel due to the distractions and uncertainties; the effectiveness of the overall restructuring activities pursuant to the Chapter 11 Cases and any additional strategies the Company may employ to address its liquidity and capital resources; the actions and decisions of creditors and other third parties that have an interest in the Chapter 11 Cases; risks associated with third parties seeking and obtaining authority to terminate or shorten the Company’s exclusivity period to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the Chapter 11 proceeding to a Chapter 7 proceeding; increased legal and other professional costs necessary to execute the Company’s restructuring; the Company’s ability to maintain relationships with suppliers, customers, employees and other third parties as a result of the Chapter 11 Cases; the trading price and volatility of the Company’s common stock and the effects of the delisting from The Nasdaq Stock Market; litigation and other risks inherent in a bankruptcy process; the effects and length of the novel coronavirus pandemic; and the other factors listed in the Company’s filings with the Securities and Exchange Commission.

 

Except as may be required by law, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements were made or to reflect the occurrence of unanticipated events. Investors are cautioned not to place undue reliance on any forward-looking statements.

 

 3 

 

 

Item 9.01.Financial Statements and Exhibits.

 

(d)Exhibits.

 

99.1Monthly Operating Report

 

 4 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    TUESDAY MORNING CORPORATION
       
       
Date: July 21, 2020   By:

/s/ Bridgett C. Zeterberg

     

Bridgett C. Zeterberg

Executive Vice President Human Resources, General Counsel and Corporate Secretary

 

 5 

 

Exhibit 99.1

 

                   
          Monthly Operating Report  
            CASH BASIS  
  CASE NAME: Tuesday Morning Corporation, et al.          
                   
  CASE NUMBER: 20-31476 (Jointly Administered)          
                   
  JUDGE: Harlin DeWayne Hale          
                   
                   
  UNITED STATES BANKRUPTCY COURT  
                   
NORTHERN & EASTERN DISTRICTS OF TEXAS
                   
  REGION 6  
                   
MONTHLY OPERATING REPORT
                   
  MONTH ENDING: June   2020 Note 1    
        MONTH   YEAR      
                   
                   
 

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (CASH BASIS-1 THROUGH CASH BASIS-6) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT, AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

                   
                   
  RESPONSIBLE  PARTY:              
                 
  /s/ Stacie Shirley             EVP, Chief Financial Officer  
  ORIGINAL  SIGNATURE  OF  RESPONSIBLE  PARTY   TITLE  
                   
  STACIE SHIRLEY         July 20, 2020  
  PRINTED NAME OF RESPONSIBLE PARTY     DATE  
                   
                   
                   
  PREPARER:                
                 
 

/s/ Jason Muskovich

        Director - AlixPartners, LLP  
  ORIGINAL  SIGNATURE  OF  PREPARER     TITLE  
                   
  JASON MUSKOVICH         July 20, 2020  
  PRINTED NAME OF PREPARER       DATE  
                   
  Note 1:  Debtors' Petition Date is May 27. 2020.  Per agreement with U.S. Trustee, this report covers the period from May 27 through June 30, 2020
                unless otherwise noted.              

 

 

 

 

In re: Tuesday Morning Corporation, et al. Case No. (Jointly Administered) 20-31476 (HDH)
  Reporting Period:  May 27 to June 30, 2020
  Federal Tax I.D. #  75-2398532

  

 

Notes to the Monthly Operating Report

 

This Monthly Operating Report ("MOR") is unaudited and has been prepared solely for the purpose of complying with the obligations of the above-captioned debtors and debtors in possession (the “Debtors”) to provide monthly operating reports during these Chapter 11 Cases.  The Debtors have prepared this monthly operating report using the best information presently available to them, which has been collected, maintained, and prepared in accordance with their historical accounting practices.  This monthly operating report is, thus, true and accurate to the best of the Debtors’ knowledge, information, and belief based on currently available data.

 

This MOR includes activity from the following Debtors and related Case Numbers:

 

Debtor Case Number
Tuesday Morning Corporation (LEAD) 20-31476
TMI Holdings, Inc. 20-31477
Tuesday Morning, Inc. 20-31478
Friday Morning, LLC 20-31479
Days of the Week, Inc. 20-31480
Nights of the Week, Inc. 20-31481
Tuesday Morning Partners, Ltd. 20-31482

 

Background:  On May 27, 2020 (the “Petition Date”), each of the Debtors filed with the Court their respective voluntary petitions for relief under chapter 11 of Title 11 of the Bankruptcy Code, commencing the above-captioned chapter 11 cases. The Debtors continue to operate their businesses and manage their properties as debtors-in-possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. On May 28, 2020, the Court entered an order authorizing the joint administration of these chapter 11 cases [Dkt. 66].

 

Notes:

 

The Debtors prepared this MOR relying primarily upon the information set forth in their books and records. Consequently, certain transactions that are not identified in the normal course of business in the Debtors’ books and records may not be included in this MOR.  Nevertheless, in preparing this MOR, the Debtors made best efforts to supplement the information set forth in their books and records with additional information concerning transactions that may not have been included therein.

 

Except as relates to Cash Receipts and Disbursements information presented on Page 1 and Page 1A of the attached MOR, information herein has been prepared on a consolidated basis for the Debtors.

 

The financial information contained herein is unaudited, limited in scope, covers a limited time period, and has been prepared solely for the purpose of complying with the monthly reporting requirements for Chapter 11 debtors as required by the United States Bankruptcy Court for the Northern District of Texas (the “Bankruptcy Court”). The financial information is in a format intended to meet the requirements of the Bankruptcy Court and the Office of the United States Trustee for the Northern District of Texas, Dallas Division (the “U.S. Trustee”).

 

As discussed below, this MOR is not prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This MOR does not include all of the information and footnotes required by GAAP.

 

The results of operations contained herein are not necessarily indicative of results that may be expected from any other period or for the full year and may not necessarily reflect the consolidated results of operations, financial position and cash flows of the Debtors in the future.

 

No assurance can be given as to the value, if any, that may be ascribed to the Debtors’ various pre- petition liabilities and other securities. Accordingly, the Debtors urge that caution be exercised with respect to existing and future investments in any of these securities or claims against the Debtors.

 

Reservation of Rights:  Given the complexity of the Debtors’ financial affairs, inadvertent errors, omissions or over-inclusions may have occurred.  Accordingly, the Debtors hereby reserve all of their rights to dispute the validity, status, enforceability, or nature of any claim amount, representation, or other statement in this MOR and reserve the right to amend or supplement this MOR, if necessary.

 

Additional Information: For more information related to these Chapter 11 Cases, court filings and claims information please refer to the Restructuring website at https://dm.epiq11.com/case/tuesdaymorning/info

 

Page 2 of 15

 

 

 

 

Monthly Operating Report

CASH BASIS-1

 

CASE NAME: Tuesday Morning Corporation, et al.  
     
CASE NUMBER: 20-31476 (Jointly Administered)  

 

    APRIL/MAY MAY JUNE  
CASH RECEIPTS AND   4/1 to 5/26 27 to 31 1 to 30 TOTAL
DISBURSEMENTS          
1.  CASH - BEGINNING OF MONTH  $    3,218,786  $        410,521  $     3,218,786
RECEIPTS            
2.  CASH SALES 1    $    7,002,027  $   79,490,803  $   86,492,829
3.  ACCOUNTS RECEIVABLE COLLECTIONS                    -                      -                     -   
4.  LOANS AND ADVANCES 2        11,000,000       32,097,217      43,097,217
5.  SALE OF ASSETS                    -                      -                     -   
6.  LEASE & RENTAL INCOME                    -                      -                     -   
7.  WAGES                    -                      -                     -   
8.  OTHER (SEE MONTHLY DETAIL)            508,347       26,563,261      27,071,608
9.  TOTAL RECEIPTS    $  18,510,374  $ 138,151,281  $ 156,661,655
DISBURSEMENTS        
10.  NET PAYROLL    $     (902,803)  $   11,025,724  $   10,122,920
11.  PAYROLL TAXES PAID 3                    -                      -                     -   
12.  SALES,USE & OTHER TAXES PAID               6,528        4,825,549        4,832,078
13.  INVENTORY PURCHASES                    -              752,428          752,428
14.  MORTAGE PAYMENTS                    -                      -                     -   
15.  OTHER SECURED NOTE PAYMENTS 2        14,939,919       68,856,549      83,796,468
16.  RENTAL & LEASE PAYMENTS         7,496,974        9,693,553      17,190,527
17.  UTILITIES              39,315             15,031            54,346
18.  INSURANCE              14,000           236,351          250,351
19.  VEHICLE EXPENSES 4                    -              109,550          109,550
20.  TRAVEL               3,145           190,550          193,695
21.  ENTERTAINMENT                    -                      -                     -   
22.  REPAIRS & MAINTENANCE                    -                98,704            98,704
23.  SUPPLIES          (278,439)             95,536         (182,903)
24.  ADVERTISING                    -                       5                    5
25.  HOUSEHOLD EXPENSES                    -                      -                     -   
26.  CHARITABLE CONTRIBUTIONS                    -                      -                     -   
27.  GIFTS                    -                      -                     -   
28.  OTHER (ORDINARY COURSE PROFESSIONALS)                    -                 4,227              4,227
29.  TOTAL ORDINARY DISBURSEMENTS  $  21,318,639  $   95,903,757  $ 117,222,396
REORGANIZATION EXPENSES        
30.  PROFESSIONAL FEES    $                -     $        359,909  $        359,909
31.  U.S. TRUSTEE FEES                    -                      -                     -   
32.  OTHER (SEE MONTHLY DETAIL)                    -           1,932,058        1,932,058
33.  TOTAL REORGANIZATION EXPENSES  $                -     $     2,291,967  $     2,291,967
34.  TOTAL DISBURSEMENTS  $  21,318,639  $   98,195,724  $ 119,514,363
35.  NET CASH FLOW  $   (2,808,265)  $   39,955,557  $   37,147,292
36.  CASH - END OF MONTH  $       410,521  $   40,366,078  $   40,366,078

 

NOTES:

 

! Includes all cash and credit card in-store sales.

 

2 Includes all borrowings or repayments against Pre-Petition ABL and Post-Petition DIP.  Debtors have repaid the Pre-Petition ABL to the required minimum balance of $100,000.  Furthermore, as of June 30, 2020 the Debtors have no outstanding borrowings against the Post-Petition DIP.

 

3 Included in Net Payroll disbursements item #10

 

4 Represents freight disbursements        

 

 

Page 3 of 15

 

 

Monthly Operating Report

CASH BASIS-1

CASE NAME: Tuesday Morning Corporation, et al. CALCULATION OF QUARTERLY UST FEES
     
CASE NUMBER: 20-31476 (Jointly Administered)  

 

       TMI         TMP   
34.  TOTAL DISBURSEMENTS Tuesday
Morning
Corporation
TMI Holdings,
Inc.
Tuesday
Morning, Inc.
Friday Morning,
LLC
Days of the
Week, Inc.
Nights of the
Week, Inc.
Tuesday
Morning
Partners, Ltd.
TOTAL
                 
Q2/M1 - APR 1 - MAY 26 2020 (PRE-PETITION)  $                 -     $              -     $                 -     $               -     $           -     $            -     $              -     $                -   
Q2/M2 - MAY 27 - MAY 31 2020                     -                     -           20,935,059                   -                  -                    -              383,580       21,318,639
Q2/M3 - JUN 1 - JUN 30 2020                     -                     -           95,209,469                   -                  -                    -           2,986,255       98,195,724
                 
TOTAL DISBURSEMENTS - CALENDAR Q2 2020  $                 -     $              -     $ 116,144,527  $               -     $           -     $             -     $   3,369,836  $ 119,514,363
                 
QUARTERLY FEES DUE  $          325.00  $        325.00  $   250,000.00  $         325.00  $     325.00  $       325.00  $   33,698.36  $   285,323.36

 

Quarterly
Disbursement
Minimum
Quarterly
Disbursement
Maximum
Applicable
Quarterly Fee
 $                      -     $                      -     $                 325.00
 $                   0.01  $          14,999.99  $                 325.00
 $          15,000.00  $          74,999.99  $                 650.00
 $          75,000.00  $        149,999.99  $                 975.00
 $        150,000.00  $        224,999.99  $              1,625.00
 $        225,000.00  $        299,999.99  $              1,950.00
 $        300,000.00  $        999,999.99  $              4,875.00
 $     1,000,000.00  $   24,999,999.99 1%
 $   25,000,000.00    $          250,000.00

 

 

Page 4 of 15

 

 

            Monthly Operating Report
CASE NAME: Tuesday Morning Corporation, et al.     CASH BASIS-1
            CONSOLIDATING DISBURSEMENTS BY LEGAL ENTITY - APR 1 TO MAY 26 2020
CASE NUMBER: 20-31476 (Jointly Administered)      

                     
      APR 1 - MAY 26 2020 BY LEGAL ENTITY  
           TMI         TMP   
CASH RECEIPTS AND   Tuesday
Morning
Corporation
TMI Holdings,
Inc.
Tuesday
Morning, Inc.
Friday Morning,
LLC
Days of the
Week, Inc.
Nights of the
Week, Inc.
Tuesday
Morning
Partners, Ltd.
APR 1 - MAY 26
TOTAL
DISBURSEMENTS                  
1.  CASH - BEGINNING OF PERIOD                
RECEIPTS                    
2.  CASH SALES 1                
3.  ACCOUNTS RECEIVABLE COLLECTIONS                
4.  LOANS AND ADVANCES 2                
5.  SALE OF ASSETS                
6.  LEASE & RENTAL INCOME                
7.  WAGES                
8.  OTHER (SEE BELOW)                
8a.  Sales Taxes Collected                  
8b.  GOB Sales Proceeds                  
9.  TOTAL RECEIPTS                
DISBURSEMENTS                
10.  NET PAYROLL                
11.  PAYROLL TAXES PAID 3                
12.  SALES,USE & OTHER TAXES PAID                
13.  INVENTORY PURCHASES                
14.  MORTAGE PAYMENTS                
15.  OTHER SECURED NOTE PAYMENTS 2                
16.  RENTAL & LEASE PAYMENTS                
17.  UTILITIES                
18.  INSURANCE                
19.  VEHICLE EXPENSES 4                
20.  TRAVEL                
21.  ENTERTAINMENT                
22.  REPAIRS & MAINTENANCE                
23.  SUPPLIES                
24.  ADVERTISING                
25.  HOUSEHOLD EXPENSES                
26.  CHARITABLE CONTRIBUTIONS                
27.  GIFTS                
28.  OTHER (ORDINARY COURSE PROFESSIONALS)                
29.  TOTAL ORDINARY DISBURSEMENTS                
REORGANIZATION EXPENSES                
30.  PROFESSIONAL FEES                
31.  U.S. TRUSTEE FEES                
32.  OTHER (SEE BELOW)                
32a.  PRE-PETITION TRADE ORDER PAYMENTS                
32b.  UTILITIES ESCROW DEPOSITS                
33.  TOTAL REORGANIZATION EXPENSES                
34.  TOTAL DISBURSEMENTS                
35.  NET CASH FLOW                
36.  CASH - END OF MONTH                
                     

NOTES:

 

! Includes all cash and credit card in-store sales.

 

2 Includes all borrowings or repayments against Pre-Petition ABL and Post-Petition DIP

 

3 Included in Net Payroll disbursements item #10

 

4 Represents freight disbursements                

 

Page 5 of 15

 

 

            Monthly Operating Report
CASE NAME: Tuesday Morning Corporation, et al.     CASH BASIS-1
            CONSOLIDATING DISBURSEMENTS BY LEGAL ENTITY - MAY 27 TO MAY 31 2020
CASE NUMBER: 20-31476 (Jointly Administered)      

                     
      MAY 27 - MAY 31 2020 BY LEGAL ENTITY  
           TMI         TMP   
CASH RECEIPTS AND   Tuesday
Morning
Corporation
TMI Holdings,
Inc.
Tuesday
Morning, Inc.
Friday Morning,
LLC
Days of the
Week, Inc.
Nights of the
Week, Inc.
Tuesday
Morning
Partners, Ltd.
MAY 27 - MAY 31
TOTAL
DISBURSEMENTS                  
1.  CASH - BEGINNING OF PERIOD  $                 -     $              -     $     3,218,786  $               -     $              -     $               -     $              -     $    3,218,786
RECEIPTS                    
2.  CASH SALES 1  $                 -     $              -     $     7,002,027  $               -     $              -     $               -       $    7,002,027
3.  ACCOUNTS RECEIVABLE COLLECTIONS                     -                     -                        -                     -                      -                       -   
4.  LOANS AND ADVANCES 2                     -                     -          11,000,000                   -                     -                      -           11,000,000
5.  SALE OF ASSETS                     -                     -                        -                     -                      -                       -   
6.  LEASE & RENTAL INCOME                     -                     -                        -                     -                      -                       -   
7.  WAGES                     -                     -                        -                     -                      -                       -   
8.  OTHER (SEE BELOW)  $                 -     $              -     $       508,347  $               -     $              -     $               -     $              -     $       508,347
8a.  Sales Taxes Collected                       -                     -              508,347                   -                     -                      -               508,347
8b.  GOB Sales Proceeds                       -                     -                        -                     -                      -                       -   
9.  TOTAL RECEIPTS  $                 -     $              -     $  18,510,374  $               -     $              -     $               -     $              -     $  18,510,374
DISBURSEMENTS                
10.  NET PAYROLL  $                 -     $              -     $   (1,004,143)  $               -     $              -     $               -     $     101,340  $      (902,803)
11.  PAYROLL TAXES PAID 3                     -                     -                      -                      -                     -                      -                      -                     -   
12.  SALES,USE & OTHER TAXES PAID                     -                     -                 6,528                   -                     -                      -                      -                 6,528
13.  INVENTORY PURCHASES                     -                     -                      -                      -                     -                      -                      -                     -   
14.  MORTAGE PAYMENTS                     -                     -                      -                      -                     -                      -                      -                     -   
15.  OTHER SECURED NOTE PAYMENTS 2                     -                     -          14,939,919                   -                     -                      -                      -         14,939,919
16.  RENTAL & LEASE PAYMENTS                     -                     -           7,240,758                   -                     -                      -              256,215        7,496,974
17.  UTILITIES                     -                     -                39,315                   -                     -                      -                      -               39,315
18.  INSURANCE                     -                     -                14,000                   -                     -                      -                      -               14,000
19.  VEHICLE EXPENSES 4                     -                     -                      -                      -                     -                      -                      -                     -   
20.  TRAVEL                     -                     -                 3,145                   -                     -                      -                      -                 3,145
21.  ENTERTAINMENT                     -                     -                      -                      -                     -                      -                      -                     -   
22.  REPAIRS & MAINTENANCE                     -                     -                      -                      -                     -                      -                      -                     -   
23.  SUPPLIES                     -                     -            (304,464)                   -                     -                      -                26,025         (278,439)
24.  ADVERTISING                     -                     -                      -                      -                     -                      -                      -                     -   
25.  HOUSEHOLD EXPENSES                     -                     -                      -                      -                     -                      -                      -                     -   
26.  CHARITABLE CONTRIBUTIONS                     -                     -                      -                      -                     -                      -                      -                     -   
27.  GIFTS                     -                     -                      -                      -                     -                      -                      -                     -   
28.  OTHER (ORDINARY COURSE PROFESSIONALS)                     -                     -                      -                      -                     -                      -                      -                     -   
29.  TOTAL ORDINARY DISBURSEMENTS  $                 -     $              -     $  20,935,059  $               -     $              -     $               -     $      383,580  $ 21,318,639
REORGANIZATION EXPENSES                
30.  PROFESSIONAL FEES  $                 -     $              -     $               -     $               -     $              -     $               -       $               -   
31.  U.S. TRUSTEE FEES                     -                     -                      -                      -                     -                      -                       -   
32.  OTHER (SEE BELOW)  $                 -     $              -     $               -     $               -     $              -     $               -     $              -     $               -   
32a.  PRE-PETITION TRADE ORDER PAYMENTS                     -                     -                      -                      -                     -                      -                      -                     -   
32b.  UTILITIES ESCROW DEPOSITS                     -                     -                      -                      -                     -                      -                      -                     -   
33.  TOTAL REORGANIZATION EXPENSES  $                 -     $              -     $               -     $               -     $              -     $               -     $              -     $               -   
34.  TOTAL DISBURSEMENTS  $                 -     $              -     $  20,935,059  $               -     $              -     $               -     $      383,580  $ 21,318,639
35.  NET CASH FLOW  $                 -     $              -     $   (2,424,685)  $               -     $              -     $               -     $    (383,580)  $  (2,808,265)
36.  CASH - END OF MONTH  $                 -     $              -     $       794,101  $               -     $              -     $               -     $    (383,580)  $      410,521
                     

NOTES:

 

! Includes all cash and credit card in-store sales.

 

2 Includes all borrowings or repayments against Pre-Petition ABL and Post-Petition DIP

 

3 Included in Net Payroll disbursements item #10

 

4 Represents freight disbursements                

 

Page 6 of 15

 

 

                    Monthly Operating Report
                    CASH BASIS-1
                    CONSOLIDATING DISBURSEMENTS BY LEGAL ENTITY - JUN 1 TO JUN 30 2020

 

CASE NAME: Tuesday Morning Corporation, et al.                                              
                JUNE 1 - JUNE 30 2020 BY LEGAL ENTITY                              
CASE NUMBER: 20-31476 (Jointly Administered)                                              

 

           TMI         TMP   
CASH RECEIPTS AND   Tuesday
Morning
Corporation
TMI Holdings,
Inc.
Tuesday
Morning, Inc.
Friday Morning,
LLC
Days of the
Week, Inc.
Nights of the
Week, Inc.
Tuesday
Morning
Partners, Ltd.
JUN 1 - JUN 30
TOTAL
DISBURSEMENTS                  
1.  CASH - BEGINNING OF MONTH  $                 -     $              -     $       410,521  $               -     $              -     $               -     $               -     $       410,521
RECEIPTS                    
2.  CASH SALES 1  $                 -     $              -     $  79,490,803  $               -     $              -     $               -     $               -     $  79,490,803
3.  ACCOUNTS RECEIVABLE COLLECTIONS                     -                     -                      -                      -                     -                      -                      -                     -   
4.  LOANS AND ADVANCES 2                     -                     -          32,097,217                   -                     -                      -                      -         32,097,217
5.  SALE OF ASSETS                     -                     -                      -                      -                     -                      -                      -                     -   
6.  LEASE & RENTAL INCOME                     -                     -                      -                      -                     -                      -                      -                     -   
7.  WAGES                     -                     -                      -                      -                     -                      -                      -                     -   
8.  OTHER (SEE BELOW)  $                 -     $              -     $   26,563,261  $               -     $              -     $               -     $               -     $  26,563,261
8a.  Sales Taxes Collected                       -                     -           5,771,032                   -                     -                      -                      -           5,771,032
8b.  GOB Sales Proceeds                       -                     -          20,792,229                   -                     -                      -                      -         20,792,229
9.  TOTAL RECEIPTS  $                 -     $              -     $ 138,151,281  $               -     $              -     $               -     $               -     $ 138,151,281
DISBURSEMENTS                
10.  NET PAYROLL  $                 -     $              -     $     9,548,513  $               -     $              -     $               -     $   1,477,210  $  11,025,724
11.  PAYROLL TAXES PAID 3                     -                     -                      -                      -                     -                      -                      -                     -   
12.  SALES,USE & OTHER TAXES PAID                     -                     -           4,825,549                   -                     -                      -                      -           4,825,549
13.  INVENTORY PURCHASES                     -                     -                      -                      -                     -                      -              752,428          752,428
14.  MORTAGE PAYMENTS                     -                     -                      -                      -                     -                      -                      -                     -   
15.  OTHER SECURED NOTE PAYMENTS 2                     -                     -          68,856,549                   -                     -                      -                      -         68,856,549
16.  RENTAL & LEASE PAYMENTS                     -                     -           9,411,313                   -                     -                      -              282,240        9,693,553
17.  UTILITIES                     -                     -                14,931                   -                     -                      -                    100            15,031
18.  INSURANCE                     -                     -              236,351                   -                     -                      -                      -             236,351
19.  VEHICLE EXPENSES 4                     -                     -                65,312                   -                     -                      -                44,239          109,550
20.  TRAVEL                     -                     -              190,550                   -                     -                      -                      -             190,550
21.  ENTERTAINMENT                     -                     -                      -                      -                     -                      -                      -                     -   
22.  REPAIRS & MAINTENANCE                     -                     -                98,095                   -                     -                      -                    610            98,704
23.  SUPPLIES                     -                     -                94,776                   -                     -                      -                    760            95,536
24.  ADVERTISING                     -                     -                       5                   -                     -                      -                      -                       5
25.  HOUSEHOLD EXPENSES                     -                     -                      -                      -                     -                      -                      -                     -   
26.  CHARITABLE CONTRIBUTIONS                     -                     -                      -                      -                     -                      -                      -                     -   
27.  GIFTS                     -                     -                      -                      -                     -                      -                      -                     -   
28.  OTHER (ORDINARY COURSE PROFESSIONALS)                     -                     -                 4,227                   -                     -                      -                      -                 4,227
29.  TOTAL ORDINARY DISBURSEMENTS  $                 -     $              -     $  93,346,171  $               -     $              -     $               -     $   2,557,586  $  95,903,757
REORGANIZATION EXPENSES                
30.  PROFESSIONAL FEES  $                 -     $              -     $       359,909  $               -     $              -     $               -     $              -     $       359,909
31.  U.S. TRUSTEE FEES                     -                     -                        -                     -                      -                      -                     -   
32.  OTHER (SEE BELOW)  $                 -     $              -     $    1,503,389  $               -     $              -     $               -     $      428,669  $    1,932,058
32a.  PRE-PETITION TRADE ORDER PAYMENTS                     -                     -              703,389                   -                     -                      -              428,669        1,132,058
32b.  UTILITIES ESCROW DEPOSITS                     -                     -              800,000                   -                     -                      -                      -             800,000
33.  TOTAL REORGANIZATION EXPENSES  $                 -     $              -     $    1,863,298  $               -     $              -     $               -     $      428,669  $    2,291,967
34.  TOTAL DISBURSEMENTS  $                 -     $              -     $  95,209,469  $               -     $              -     $               -     $   2,986,255  $  98,195,724
35.  NET CASH FLOW  $                 -     $              -     $  42,941,813  $               -     $              -     $               -     $  (2,986,255)  $  39,955,557
36.  CASH - END OF MONTH  $                 -     $              -     $  43,352,333  $               -     $              -     $               -     $  (2,986,255)  $  40,366,078
                     

NOTES:

 

! Includes all cash and credit card in-store sales.

 

2 Includes all borrowings or repayments against Pre-Petition ABL and Post-Petition DIP.  Debtors have repaid the Pre-Petition ABL to the required minimum balance of $100,000.

 

Furthermore, as of June 30, 2020 the Debtors have no outstanding borrowings against the Post-Petition DIP.

 

3 Included in Net Payroll disbursements item #10

 

4 Represents freight disbursements                

 

Page 7 of 15

 

 

 

 

 

Monthly Operating Report

CASH BASIS-1A

 

2020

 

CASE NAME: Tuesday Morning Corporation, et al.      
               
CASE NUMBER: 20-31476 (Jointly Administered)      

 

CASH DISBURSEMENTS DETAIL     MONTH: June
               
CASH DISBURSEMENTS                 
  DATE PAYEE PURPOSE AMOUNT
         
         
    SEE NOTE 1 BELOW    
         
         
         
  TOTAL CASH DISBURSEMENTS 1      $                         -   
               
               
BANK ACCOUNT DISBURSEMENTS
CK# DATE PAYEE PURPOSE AMOUNT
         
         
         
    SEE NOTE 2 BELOW    
         
         
         
         
         
         
         
         
         
         
         
         
  TOTAL BANK ACCOUNT DISBURSEMENTS      $        119,514,363
               
               
TOTAL DISBURSEMENTS FOR THE PERIOD        $        119,514,363

 

1 Aside from immaterial petty cash transactions conducted by the stores which are not individually recorded, the Debtors do not make cash disbursements.

 

2 Debtors process hundreds of individual transactions per week.  In many cases these disbursements relate to confidential pricing agreements with merchandise suppliers or other commercially sensitive information. Due to the voluminous and confidential nature of this information, Debtors have excluded details from this MOR. Individual payment line items are available for review on request by the Office of the US Trustee.

 

 

Page 8 of 15

 

 

Monthly Operating Report

CASH BASIS-2

 

CASE NAME: Tuesday Morning Corporation, et al.      
               
CASE NUMBER: 20-31476 (Jointly Administered)      

 

 

BANK RECONCILIATIONS          
        Acct #1 Acct #2 Acct #3  
A.  BANK:   SEE FOLLOWING SCHEDULE OF ACCOUNTS  
B.  ACCOUNT NUMBER:            TOTAL 
C.  PURPOSE (TYPE):            
1.  BALANCE PER BANK STATEMENT        $      43,459,166
2.  ADD:  TOTAL DEPOSITS NOT CREDITED        $                    -   
3.  SUBTRACT:  OUTSTANDING CHECKS        $       (3,093,088)
4.  OTHER RECONCILING ITEMS          $                    -   
5.  MONTH END BALANCE PER BOOKS  $                -     $                -     $                -     $      40,366,078
6.  NUMBER OF LAST CHECK WRITTEN        
               
               
INVESTMENT ACCOUNTS            
        DATE OF TYPE OF  PURCHASE CURRENT
BANK, ACCOUNT NAME & NUMBER PURCHASE INSTRUMENT PRICE VALUE
7.        
8.        
9.        
10.        
11.  TOTAL INVESTMENTS      $                 -     $                    -   
               
               
CASH              
               
12.  CURRENCY ON HAND              $                    -   
               
13.  TOTAL CASH - END OF MONTH        $      40,366,078

 

 

Page 9 of 15

 

 

 

 

 

Monthly Operating Report

CASH BASIS-2A

SCHEDULE OF DEBTOR BANK ACCOUNTS

 

CASE NAME:   Tuesday Morning Corporation, et al.          
                       
CASE NUMBER:   20-31476 (Jointly Administered)          

 

Bank   GL    Nature of Account   Account
Number
  Balance as of
June 30, 2020
                 
Wells Fargo   1013   TMI - AP - NACHA ACH   xxx3007    $                     -   
Wells Fargo   1013   TMP - AP - NACHA ACH   xxx3015                        -   
Wells Fargo   1015   TMI - Property Tax   xxx4381                        -   
Wells Fargo   1018   TMI - Sale Tax II   xxx3495                501,039
Wells Fargo   1020   TMI Main Disbursement   xxx7526             2,106,933
Wells Fargo   1025   Friday Morning, Inc.   xxx1036                        -   
Wells Fargo   1025   TMI - Main Cash Concentration   xxx5063             2,339,581
Wells Fargo   1025   TMP - Main   xxx0097                943,344
Bank of America   1025   TMP - DP Payments   xxx5718                        -   
Wells Fargo   1032   TMI - Visa/MC   xxx8307                        -   
Wells Fargo   1033   TMI - Discover   xxx8299                        -   
Wells Fargo   1034   TMI - American Express   xxx7708                        -   
Community First National   1045   Store #863 Depository Account   xxx9812                       50
People Bank   1045   Store #984 Depository Account   xxx1340                   5,782
Hancock Bank   1045   Store #598 Depository Account   xxx0914                   4,469
BBVA/Compass Bank   1045   Stores Depository Account   xxx9325                 43,399
Fifth Third Bank   1045   Stores Depository Account   xxx5683                 13,979
Regions Bank     1045   Stores Depository Account   xxx0300                126,548
Chase Bank   1045   Stores Depository Account   xxx3000                518,890
PNC Bank   1045   Stores Depository Account   xxx0704                 80,613
Wells Fargo   1045   Stores Depository Account   xxx4140                        -   
Wells Fargo   1045   Stores Depository Account   xxx4488                        -   
Bank of America   1045   Stores Depository Account   xxx1681                163,929
BB&T Bank   1045   Stores Depository Account   xxx5675                 92,031
BancFirst Bank   1045   Store #481 Depository Account   xxx6246                   4,872
International Bank of Commerce   1045   Stores #953,#1017, #1077 & #1191 Depository Account   xxx4877                 12,954
Citizens Bank   1045   Stores Depository Account   xxx5872                 14,701
US Bank   1045   Stores Depository Account   xxx1357                 43,626
Key Bank   1045   Stores Depository Account   xxx4743                 28,153
Wells Fargo   1056   TMI - ADP - PR Tax & Garnishment   xxx5892                342,075
Wells Fargo   1056   TMP - ADP - PR Tax & Garnishment   xxx5792                   5,070
Wells Fargo   1062   TMI - Postage   xxx2195                267,218
Wells Fargo   1070   TMI - Workers Comp   xxx3193                      766
Wells Fargo   1082   TMI - UHC Medical   xxx0415                242,435
Wells Fargo   1091   TMI - CIGNA Dental/STD   xxx6906                149,456
Wells Fargo   1094   TMI - Tax Saver - FSA   xxx1184                        -   
JPMorgan Chase Bank   1099   Cash Holding Account   xxx7366           35,407,255
Wells Fargo   1100   Wells Fargo Brokerage Services   xxx6142                        -   
                 
               $         43,459,166
                     

Note 1:  Excludes individual store depository accounts, which are swept into Intermediate Store Depository Accounts included above.  For more information, see the Debtors' Cash Management Motion [Dkt 10]

 

Note 2: Book to bank reconciliation of each of the Debtors' bank accounts are performed in the ordinary course of business on a monthly basis.  Additional support for each of these accounts is available for review on request by the Office of the US Trustee.

 

 

 

Page 10 of 15

 

 

Monthly Operating Report

CASH BASIS-3

 

CASE NAME: Tuesday Morning Corporation, et al.      
               
CASE NUMBER: 20-31476 (Jointly Administered)      

 

ASSETS OF THE ESTATE            
               
SCHEDULE "A" SCHEDULE
AMOUNT
30-Jun-20 MONTH MONTH
REAL PROPERTY      
1. HQ AND DISTRIBUTION CENTER (AT NBV)  $           22,293,977  $            19,662,757    
2.        
3.        
4.  OTHER (ATTACH LIST)        
5.  TOTAL REAL PROPERTY ASSETS  $           22,293,977  $            19,662,757  $                           -     $                       -   
SCHEDULE "B"        
PERSONAL PROPERTY        
1.  CASH ON HAND  $                580,900  $                579,100    
2.  CHECKING, SAVINGS, ETC.  $           16,047,077  $           40,366,078    
3.  SECURITY DEPOSITS  $                806,583  $                620,535    
4.  HOUSEHOLD GOODS        
5.  BOOKS, PICTURES, ART        
6.  WEARING APPAREL        
7.  FURS AND JEWELRY        
8.  FIREARMS & SPORTS EQUIPMENT        
9.  INSURANCE POLICIES        
10.  ANNUITIES        
11.  EDUCATION        
12.  RETIREMENT & PROFIT SHARING        
13.  STOCKS        
14.  PARTNERSHIPS & JOINT VENTURES        
15.  GOVERNMENT & CORPORATE BONDS        
16.  ACCOUNTS RECEIVABLE  $                889,577  $             1,104,770    
17.  ALIMONY        
18.  OTHER LIQUIDATED DEBTS        
19.  EQUITABLE INTERESTS        
20.  CONTINGENT INTERESTS        
21.  OTHER CLAIMS  $             5,374,800  $           16,250,282    
22.  PATENTS & COPYRIGHTS        
23.  LICENSES & FRANCHISES        
24.  CUSTOMER LISTS        
25.  AUTOS, TRUCKS & OTHER VEHICLES  $                  23,943  $                  22,463    
26.  BOATS & MOTORS        
27.  AIRCRAFT        
28.  OFFICE EQUIPMENT  $           15,234,482  $           16,582,287    
29.  MACHINERY, FIXTURES & EQUIPMENT  $           65,973,947  $           32,367,795    
30.  INVENTORY  $         217,542,264  $         114,905,042    
31.  ANIMALS        
32.  CROPS        
33.  FARMING EQUIPMENT        
34.  FARM SUPPLIES        
35.  OTHER (ATTACH LIST)        
36.  TOTAL PERSONAL PROPERTY ASSETS  $         322,473,572  $         222,798,352  $                           -     $                       -   
37.  TOTAL ASSETS  $         344,767,549  $         242,461,109  $                           -     $                       -   

 

 

Page 11 of 15

 

 

 

 

          Monthly Operating Report
              CASH BASIS-4
               
CASE NAME: Tuesday Morning Corporation, et al.      
               
CASE NUMBER: 20-31476 (Jointly Administered)      
               
            MONTH: June

 

LIABILITIES OF THE ESTATE          
               
PREPETITION SCHEDULE
 AMOUNT
     
LIABILITIES PAYMENTS    
1.  SECURED 1  $    39,210,220     $        39,110,220       
2.  PRIORITY 2  $                 -             
3.  UNSECURED 3, 4  $   107,241,762    $          2,826,379       
4.  OTHER (ATTACH LIST)        
5.  TOTAL PREPETITION LIABILITIES  $   146,451,982    $        41,936,598       
               
               
POSTPETITION DATE AMOUNT DUE AMOUNT
LIABILITIES INCURRED OWED DATE PAST DUE
1.  FEDERAL INCOME TAXES        
2.  FICA/MEDICARE        
3.  STATE TAXES        
4.  REAL ESTATE TAXES        
5.  OTHER TAXES (ATTACH LIST)        
6.  TOTAL TAXES Various  $               2,188     Various  $                  -     
OTHER POSTPETITION LIABILITIES INCLUDING TRADE CREDITORS (LIST NAMES OF CREDITORS)
7.        
8.  Total Post-Petition Accounts Payable Various  $        2,421,558     Various  $                  -     
9.        
10.        
11.        
12.        
13.        
14.        
15.        
16.        
17.        
18.        
19.  (IF ADDITIONAL ATTACH LIST)        
20.  TOTAL OF LINES 7 - 19    $       2,421,558        $                  -     
21.  TOTAL POSTPETITION LIABILITIES    $       2,423,746          $                  -     

 

1 Debtors have repaid the Pre-Petition ABL to the required minimum balance of $100,000.  Furthermore, as of June 30, 2020 the Debtors have no outstanding borrowings against the Post-Petition DIP.

 

2 The Debtors did not list any Priority liabilities in their Schedules of Assets and Liabilities.  Debtors received authority to make payments on account of Pre-Petition Wages and related employee benefits and certain Pre-Petition Taxes Because the authority granted is sufficient to satisfy all known such liabilities, the Debtors do not believe that they have exposure to Priority Claim Liabilities.

 

3 Payments against unsecured liabilities represent payments made under authority granted in the Debtors' Trade Order to certain foreign vendors, shippers and warehousemen and miscellaneous lien claimants.

 

4 Debtors' negotiations with its Landlords are on-going and, consequently, certain waivers of pre-petition rent obligations are expected but not yet fully quantified.  Debtors will include these reductions as "payments" against corresponding unsecured rents once these amounts are agreed and quantified.  

 

 

Page 12 of 15

 

 

          Monthly Operating Report  
            CASH BASIS-4A  
                 
CASE NAME: Tuesday Morning Corporation, et al.        
                 
CASE NUMBER: 20-31476 (Jointly Administered)        
                 
            MONTH: June  
ACCOUNTS RECEIVABLE AGING            
        SCHEDULE
AMOUNT
MONTH MONTH MONTH  
               
1.  0 - 30          
2.  31 - 60  See Note 1 Below   
3.  61 - 90          
4.  91 +          
5.  TOTAL ACCOUNTS RECEIVABLE  $               -       $                 -       $             -       $              -       
6.  AMOUNT CONSIDERED UNCOLLECTIBLE          
7.  ACCOUNTS RECEIVABLE (NET)  $               -       $                 -       $             -       $              -       
                 
                 
AGING OF POSTPETITION TAXES           
AND PAYABLES       0 - 30 31-60 90+ Total  
TAXES PAYABLE DAYS DAYS DAYS    
1.  FEDERAL        $              -     
2.  STATE        $              -     
3.  LOCAL        $              -     
4.  OTHER (ATTACH LIST)        $              -     
5.  TOTAL TAXES PAYABLE  $           2,188    $                 -        $                 -       $          2,188     
                 
6.  ACCOUNTS PAYABLE  $    2,419,128    $             2,430    $                -        $   2,421,558     
                 
STATUS OF POSTPETITION TAXES          
        BEGINNING AMOUNT   ENDING  
        TAX WITHHELD AMOUNT TAX  
FEDERAL        LIABILITY   OR ACCRUED   PAID   LIABILITY   
1.  WITHHOLDING        $              -     
2.  FICA-EMPLOYEE        $              -     
3.  FICA-EMPLOYER        $              -     
4.  UNEMPLOYMENT        $              -     
5.  INCOME        $              -     
6.  OTHER (ATTACH LIST)        $              -     
7.  TOTAL FEDERAL TAXES  $                  -     $                   -        $                -        $              -     
STATE AND LOCAL        $              -     
8.    WITHHOLDING        $              -     
9.    SALES        $              -     
10.  EXCISE        $              -     
11.  UNEMPLOYMENT        $              -     
12.  REAL PROPERTY        $              -     
13.  PERSONAL PROPERTY        $              -     
14.  OTHER (ATTACH LIST)        $              -     
15.  TOTAL STATE & LOCAL  $                  -     $                  -        $                -        $              -     
16.  TOTAL TAXES  $    4,832,078    $             2,188      $    4,832,078     $          2,188     

 

NOTE:  The Debtors were granted authority under their Tax Order [Dkt 97] to pay certain pre-petition taxes in the ordinary course of business.  To the best of Debtors' information and belief, Debtors are current and remain current in their payment of all taxes included in the tables above.

 

1  Debtors' sales are conducted in real-time in-store.  The Debtors do not offer credit to customers and therefore do not have material Accounts Receivable at any time.  A/R listed relates primarily to reimbursements due from landlords for tenant improvement allowances authorized under certain real property leases  

 

 

Page 13 of 15

 

 

 

 

        Monthly Operating Report
          CASH BASIS-5
           
CASE NAME: Tuesday Morning Corporation, et al.      
           
CASE NUMBER: 20-31476 (Jointly Administered)      
        MONTH: June
           
PAYMENTS TO INSIDERS AND PROFESSIONALS        
           
INSIDERS    
NAME TYPE OF PAYMENT AMOUNT PAID TTL PD TO DATE    
         
           
SEE CERTIFICATION 1 BELOW    
         
         
TOTAL PAYMENTS TO INSIDERS        
           

 

PROFESSIONALS
  DATE OF COURT ORDER AMOUNT AMOUNT TTL PAID TOTAL INCURRED
NAME AUTHORIZING PAYMENT APPROVED PAID TO DATE & UNPAID
1.  Haynes & Boone     $                       - $                    - $                 760,000
2. Squire Patton Boggs     - - -
3. AlixPartners     - - 1,140,000
4. Stifel / Miller Buckfire     - - 975,000
5. Vinson & Elkins     - - 675,000
6. Berkley Research Group     - - 192,823
7. Montgomery McCracken Walker & Rhoads     - - 360,000
8. BDO     - - 199,500
9. Munsch Hardt     - - 75,000
10. Great American Group Dkt 197 - 6/9/2020   278,649 278,649 297,898
11. A&G Realty Partners Dkt 139 - 6/2/2020   - - 1,245,530
12. Epiq Systems Dkt 100 - 5/29/2020   74,959 74,959 -
13. Merrill Communications     6,301 6,301 -
TOTAL PAYMENTS TO PROFESSIONALS $                   - $               359,909 $            359,909 $               5,920,751

 

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS  
           
    SCHEDULED AMOUNTS TOTAL  
    MONTHLY PAID UNPAID  
NAME OF CREDITOR PAYMENTS DURING POST-  
    DUE MONTH PETITION  
         
           
SEE CERTIFICATION 2 BELOW  
         
         
6. TOTAL        
           
           
CERTIFICATION 1 - PAYMENTS TO INSIDERS        
           
I, STACIE SHIRLEY, hereby certify that only customary wages have been paid to insiders during this reporting period.
There have been no bonuses, loans or other amounts paid aside from ordinary course compensation  
           
CERTIFICATION 2 - POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE & ADEQUATE PROTECTION PAYMENTS
           
I, STACIE SHIRLEY, hereby certify that to the best of my knowledge Debtors are current on any and all Post-Petition amounts due on account of
Secured Notes, Leases Payable and Adequate Protection Payments      

 

 

Page 14 of 15

 

 

 

                  Monthly Operating Report
                    CASH BASIS-6
                         
                    2020    
CASE NAME: Tuesday Morning Corporation, et al.            
                         
CASE NUMBER: 20-31476 (Jointly Administered)            
                  MONTH: June  

 

QUESTIONNAIRE              
                YES NO
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE
THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?
  X
2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT
OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?
  X
3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES OR
LOANS) DUE FROM RELATED PARTIES?
  X
4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES
THIS REPORTING PERIOD?
Y
See Note 1
 
5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE
DEBTOR FROM ANY PARTY?
Y
See Note 2
 
6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?   X
7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES
PAST DUE?
  X
8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?   X
9. ARE ANY OTHER POSTPETITION TAXES PAST DUE?   X
10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS
DELINQUENT?
  X
11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE
REPORTING PERIOD?
Y
See Note 3
 
12. ARE ANY WAGE PAYMENTS PAST DUE?   X

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES"; PROVIDE A DETAILED
EXPLANATION OF EACH ITEM.  ATTACH ADDITIONAL SHEETS IF NECESSARY.
         
Note 1: Debtors have made certain payments on Pre-Petition items only where authorized under and in compliance with 
various orders of the Court including Insurance [dkt 108], Taxes [dkt 97], Wages [dkt 69], Cash Management [dkt 68],
Trade [dkt 330].  These disbursements are included on relevant pages within this Monthly Operating Report.
         
Note 2: Debtors have received Post-Petition Financing in accordance with their Motion to Obtain Post-Petition
Financing [dkt 19 and dkt 90] and the Interim and Final Orders, thereto [dkt 67 and dkt 331, respectively]
These disbursements are included on relevant pages within this Monthly Operating Report.
         
Note 3: Debtors have made certain payments on Pre-Petition Taxes only where authorized under and in compliance with 
related orders of the Court with respect to Tax obligations [dkt 97] These disbursements are included on relevant
pages within this Monthly Operating Report.

 

INSURANCE              
                YES NO
1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER
NECESSARY INSURANCE COVERAGES IN EFFECT?
X  
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? X  
3. PLEASE ITEMIZE POLICIES BELOW See Note 4  

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO" OR IF ANY POLICIES HAVE

BEEN CANCELED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN

EXPLANATION BELOW.  ATTACH ADDITIONAL SHEETS IF NECESSARY.

 

Note 4:  Please refer to Debtors' Insurance Motion [dkt 11] for details of all of Debtors' Insurance Policies.

 

INSTALLMENT PAYMENTS              
TYPE OF     PERIOD PAYMENT AMOUNT
POLICY CARRIER COVERED & FREQUENCY
             
             
SEE NOTE 4 ABOVE            
   
             

 

Page 15 of 15