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): August 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 August 20, 2020, the Debtors filed with the Bankruptcy Court their monthly operating report for the period beginning July 1, 2020 and ending July 31, 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.

 

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.

 

Item 9.01.Financial Statements and Exhibits.

 

(d)Exhibits.

 

99.1Monthly Operating Report

 

3

 

 

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: August  20, 2020 By:

/s/ Bridgett C. Zeterberg

   

Bridgett C. Zeterberg

Executive Vice President Human Resources, General Counsel and Corporate Secretary

 

4

 

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: July   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:              
                 
          EVP, Chief Financial Officer  
  ORIGINAL  SIGNATURE  OF  RESPONSIBLE  PARTY   TITLE  
                   
  STACIE SHIRLEY         August 19, 2020  
  PRINTED NAME OF RESPONSIBLE PARTY     DATE  
                   
                   
                   
  PREPARER:                
                 
 

 

        Director - AlixPartners, LLP  
  ORIGINAL  SIGNATURE  OF  PREPARER     TITLE  
                   
  JASON MUSKOVICH         August 19, 2020  
  PRINTED NAME OF PREPARER       DATE  
                   
 

Note 1: This report covers the period from July 1 through July 31, 2020 unless otherwise noted.

                 

 

   

 

 

In re: Tuesday Morning Corporation, et al.     Case No. (Jointly Administered) 20-31476 (HDH)
        Reporting Period:  July 1 to July 31, 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)        
                 
        JUL AUG SEP    
  CASH RECEIPTS AND   1 to 31 1 to 31 1 to 30 TOTAL  
  DISBURSEMENTS            
  1.  CASH - BEGINNING OF MONTH  $     40,366,078  $              -     $               -     $   40,366,078  
  RECEIPTS              
  2.  CASH SALES 1  $     51,714,136  $              -     $               -     $   51,714,136  
  3.  ACCOUNTS RECEIVABLE COLLECTIONS                     -                     -                      -                     -     
  4.  LOANS AND ADVANCES 2        49,500,000                  -                      -         49,500,000  
  5.  SALE OF ASSETS                     -                     -                      -                     -     
  6.  LEASE & RENTAL INCOME                     -                     -                      -                     -     
  7.  WAGES                     -                     -                      -                     -     
  8.  OTHER (SEE MONTHLY DETAIL)        16,613,457                  -                      -         16,613,457  
  9.  TOTAL RECEIPTS  $   117,827,593  $              -     $               -     $ 117,827,593  
  DISBURSEMENTS          
  10.  NET PAYROLL  $     10,187,291  $              -     $               -     $   10,187,291  
  11.  PAYROLL TAXES PAID 3                     -                     -                      -                     -     
  12.  SALES,USE & OTHER TAXES PAID          6,558,835                  -                      -           6,558,835  
  13.  INVENTORY PURCHASES          9,186,713                  -                      -           9,186,713  
  14.  MORTAGE PAYMENTS                     -                     -                      -                     -     
  15.  OTHER SECURED NOTE PAYMENTS 2        49,687,500                  -                      -         49,687,500  
  16.  RENTAL & LEASE PAYMENTS          6,989,972                  -                      -           6,989,972  
  17.  UTILITIES             724,189                  -                      -             724,189  
  18.  INSURANCE             439,571                  -                      -             439,571  
  19.  VEHICLE EXPENSES 4          1,774,994                  -                      -           1,774,994  
  20.  TRAVEL             220,064                  -                      -             220,064  
  21.  ENTERTAINMENT                     -                     -                      -                     -     
  22.  REPAIRS & MAINTENANCE          1,457,039                  -                      -           1,457,039  
  23.  SUPPLIES             377,343                  -                      -             377,343  
  24.  ADVERTISING             158,085                  -                      -             158,085  
  25.  HOUSEHOLD EXPENSES                     -                     -                      -                     -     
  26.  CHARITABLE CONTRIBUTIONS                     -                     -                      -                     -     
  27.  GIFTS                     -                     -                      -                     -     
  28.  OTHER (ORDINARY COURSE PROFESSIONALS)             495,895                  -                      -             495,895  
  29.  TOTAL ORDINARY DISBURSEMENTS  $     88,257,491  $              -     $               -     $   88,257,491  
  REORGANIZATION EXPENSES          
  30.  PROFESSIONAL FEES  $       5,268,345  $              -     $               -     $     5,268,345  
  31.  U.S. TRUSTEE FEES             285,323                  -                      -           285,323.0  
  32.  OTHER (SEE MONTHLY DETAIL)             457,015                  -                      -             457,015  
  33.  TOTAL REORGANIZATION EXPENSES  $       6,010,682  $              -     $               -     $     6,010,682  
  34.  TOTAL DISBURSEMENTS  $     94,268,173  $              -     $               -     $   94,268,173  
  35.  NET CASH FLOW  $     23,559,419  $              -     $               -     $   23,559,419  
  36.  CASH - END OF MONTH  $     63,925,497  $              -     $               -     $   63,925,497  
                 
  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  
  CASE NAME: Tuesday Morning Corporation, et al.           CASH BASIS-1  
              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 - JUL 1 - JUL 31, 2020  $       -     $       -     $  82,440,911  $          -     $        -     $         -     $  11,827,262  $  94,268,173  
  Q2/M2 - AUG 1 - AUG 31, 2020           -              -                 -                 -               -                -                -               -     
  Q2/M3 - SEP 1 - SEP 30, 2020           -              -                 -                 -               -                -                -               -     
                         
  TOTAL DISBURSEMENTS - CALENDAR Q3 2020  $       -     $       -     $  82,440,911  $          -     $        -     $         -     $  11,827,262  $  94,268,173  
                         
  QUARTERLY FEES DUE  $  325.00  $  325.00  $  250,000.00  $  325.00  $  325.00  $  325.00  $  118,272.62  $  369,897.62  
                         
                         
    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 - JUL 1 TO JUL 31, 2020  
  CASE NUMBER: 20-31476 (Jointly Administered)            
                   

    JULY 1 - JULY 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. JUL 1 - JUL 31 TOTAL  
  DISBURSEMENTS                  
  1.  CASH - BEGINNING OF MONTH  $                 -     $              -     $   40,366,078  $               -     $              -     $               -     $               -     $  40,366,078  
  RECEIPTS                  
  2.  CASH SALES 1  $                 -     $              -     $   51,714,136  $               -     $              -     $               -     $               -     $  51,714,136  
  3.  ACCOUNTS RECEIVABLE COLLECTIONS                     -                     -                      -                      -                     -                      -                      -                     -     
  4.  LOANS AND ADVANCES 2                     -                     -          49,500,000                   -                     -                      -                      -         49,500,000  
  5.  SALE OF ASSETS                     -                     -                      -                      -                     -                      -                      -                     -     
  6.  LEASE & RENTAL INCOME                     -                     -                      -                      -                     -                      -                      -                     -     
  7.  WAGES                     -                     -                      -                      -                     -                      -                      -                     -     
  8.  OTHER (SEE BELOW)  $                 -     $              -     $   16,613,457  $               -     $              -     $               -     $               -     $  16,613,457  
  8a.  Sales Taxes Collected                     -                     -           3,754,446                   -                     -                      -                      -           3,754,446  
  8b.  GOB Sales Proceeds                     -                     -          12,859,011                   -                     -                      -                      -         12,859,011  
  9.  TOTAL RECEIPTS  $                 -     $              -     $ 117,827,593  $               -     $              -     $               -     $               -     $ 117,827,593  
  DISBURSEMENTS                  
  10.  NET PAYROLL  $                 -     $              -     $     8,571,146  $               -     $              -     $               -     $   1,616,146  $  10,187,291  
  11.  PAYROLL TAXES PAID 3                     -                     -                      -                      -                     -                      -                      -                     -     
  12.  SALES,USE & OTHER TAXES PAID                     -                     -           6,558,835                   -                     -                      -                      -           6,558,835  
  13.  INVENTORY PURCHASES                     -                     -                      -                      -                     -                      -           9,186,713        9,186,713  
  14.  MORTAGE PAYMENTS                     -                     -                      -                      -                     -                      -                      -                     -     
  15.  OTHER SECURED NOTE PAYMENTS 2                     -                     -          49,687,500                   -                     -                      -                      -         49,687,500  
  16.  RENTAL & LEASE PAYMENTS                     -                     -           6,707,732                   -                     -                      -              282,240        6,989,972  
  17.  UTILITIES                     -                     -              723,649                   -                     -                      -                    540          724,189  
  18.  INSURANCE                     -                     -              439,571                   -                     -                      -                      -             439,571  
  19.  VEHICLE EXPENSES 4                     -                     -           1,321,765                   -                     -                      -              453,229        1,774,994  
  20.  TRAVEL                     -                     -              220,064                   -                     -                      -                      -             220,064  
  21.  ENTERTAINMENT                     -                     -                      -                      -                     -                      -                      -                     -     
  22.  REPAIRS & MAINTENANCE                     -                     -           1,438,961                   -                     -                      -                18,079        1,457,039  
  23.  SUPPLIES                     -                     -              308,640                   -                     -                      -                68,704          377,343  
  24.  ADVERTISING                     -                     -              158,085                   -                     -                      -                      -             158,085  
  25.  HOUSEHOLD EXPENSES                     -                     -                      -                      -                     -                      -                      -                     -     
  26.  CHARITABLE CONTRIBUTIONS                     -                     -                      -                      -                     -                      -                      -                     -     
  27.  GIFTS                     -                     -                      -                      -                     -                      -                      -                     -     
  28.  OTHER (ORDINARY COURSE PROFESSIONALS)                     -                     -              495,895                   -                     -                      -                      -             495,895  
  29.  TOTAL ORDINARY DISBURSEMENTS  $                 -     $              -     $   76,631,841  $               -     $              -     $               -     $   11,625,650  $  88,257,491  
  REORGANIZATION EXPENSES                  
  30.  PROFESSIONAL FEES  $                 -     $              -     $     5,268,345  $               -     $              -     $               -     $                -     $    5,268,345  
  31.  U.S. TRUSTEE FEES                     -                     -              285,323                   -                     -                      -                      -             285,323  
  32.  OTHER (SEE BELOW)  $                 -     $              -     $        255,403  $               -     $              -     $               -     $       201,612  $       457,015  
  32a.  PRE-PETITION TRADE ORDER PAYMENTS                     -                     -                31,792                   -                     -                      -              201,612          233,404  
  32b.  UTILITIES ESCROW DEPOSITS                     -                     -              223,611                   -                     -                      -                      -             223,611  
  33.  TOTAL REORGANIZATION EXPENSES  $                 -     $              -     $     5,809,070  $               -     $              -     $               -     $       201,612  $    6,010,682  
  34.  TOTAL DISBURSEMENTS  $                 -     $              -     $   82,440,911  $               -     $              -     $               -     $   11,827,262  $  94,268,173  
  35.  NET CASH FLOW  $                 -     $              -     $   35,386,682  $               -     $              -     $               -     $ (11,827,262)  $  23,559,419  
  36.  CASH - END OF MONTH  $                 -     $              -     $   75,752,759  $               -     $              -     $               -     $ (11,827,262)  $  63,925,497  
                     
  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 - AUG 1 TO AUG 31, 2020  
  CASE NUMBER: 20-31476 (Jointly Administered)            
                   

    AUGUST 1 - AUGUST 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.
AUG 1 - AUG
31 TOTAL
  DISBURSEMENTS                
  1.  CASH - BEGINNING OF MONTH  $                 -     $              -     $               -     $               -     $              -     $               -     $               -     $               -   
  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 6 of 15

 

 

              Monthly Operating Report  
  CASE NAME: Tuesday Morning Corporation, et al.       CASH BASIS-1  
      CONSOLIDATING DISBURSEMENTS BY LEGAL ENTITY - SEP 1 TO SEP 30, 2020  
  CASE NUMBER: 20-31476 (Jointly Administered)            
                   

    SEPTEMBER 1 - SEPTEMBER 30, 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.
SEP 1 - SEP
30 TOTAL
 
  DISBURSEMENTS                  
  1.  CASH - BEGINNING OF MONTH  $                 -     $              -     $               -     $               -     $              -     $               -     $               -     $               -     
  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.  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: July  
                   
  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    $           94,268,173  
                   
                   
  TOTAL DISBURSEMENTS FOR THE PERIOD        $           94,268,173  
                   
  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        $         65,900,840    
  2.  ADD:  TOTAL DEPOSITS NOT CREDITED        $                      -       
  3.  SUBTRACT:  OUTSTANDING CHECKS        $          (1,975,342)  
  4.  OTHER RECONCILING ITEMS          $                      -       
  5.  MONTH END BALANCE PER BOOKS  $                  -     $                 -     $                   -     $        63,925,497    
  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        $          63,925,497    
 

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 July
31, 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                390,568    
  Wells Fargo   1020   TMI Main Disbursement   xxx7526             2,620,524    
  Wells Fargo   1025   Friday Morning, Inc.   xxx1036                        -       
  Wells Fargo   1025   TMI - Main Cash Concentration   xxx5063             1,933,985    
  Wells Fargo   1025   TMP - Main   xxx0097             3,683,993    
  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                       43    
  People Bank   1045   Store #984 Depository Account   xxx1340                       47    
  Hancock Bank   1045   Store #598 Depository Account   xxx0914                       50    
  BBVA/Compass Bank   1045   Stores Depository Account   xxx9325                   6,505    
  Fifth Third Bank   1045   Stores Depository Account   xxx5683                   5,555    
  Regions Bank     1045   Stores Depository Account   xxx0300                 74,267    
  Chase Bank   1045   Stores Depository Account   xxx3000                207,320    
  PNC Bank   1045   Stores Depository Account   xxx0704                   6,359    
  Wells Fargo   1045   Stores Depository Account   xxx4140                        -       
  Wells Fargo   1045   Stores Depository Account   xxx4488                        -       
  Bank of America   1045   Stores Depository Account   xxx1681                 43,381    
  BB&T Bank   1045   Stores Depository Account   xxx5675                 14,018    
  BancFirst Bank   1045   Store #481 Depository Account   xxx6246                      100    
  International Bank of Commerce   1045   Stores #953,#1017, #1077 & #1191 Depository Account   xxx4877                   3,659    
  Citizens Bank   1045   Stores Depository Account   xxx5872                   4,323    
  US Bank   1045   Stores Depository Account   xxx1357                   8,844    
  Key Bank   1045   Stores Depository Account   xxx4743                 11,013    
  Wells Fargo   1056   TMI - ADP - PR Tax & Garnishment   xxx5892                358,469    
  Wells Fargo   1056   TMP - ADP - PR Tax & Garnishment   xxx5792                   9,315    
  Wells Fargo   1062   TMI - Postage   xxx2195                265,925    
  Wells Fargo   1070   TMI - Workers Comp   xxx3193                      636    
  Wells Fargo   1082   TMI - UHC Medical   xxx0415                224,660    
  Wells Fargo   1091   TMI - CIGNA Dental/STD   xxx6906                149,129    
  Wells Fargo   1094   TMI - Tax Saver - FSA   xxx1184                        -       
  JPMorgan Chase Bank   1099   Cash Holding Account   xxx7366           55,878,150    
  Wells Fargo   1100   Wells Fargo Brokerage Services   xxx6142                        -       
                           
                       $          65,900,840    
                           
  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
31-Jul-20 31-Aug-20 30-Sep-20  
  REAL PROPERTY        
  1. HQ AND DISTRIBUTION CENTER (AT NBV)  $      22,293,977  $     19,544,476      
  2.          
  3.          
  4.  OTHER (ATTACH LIST)          
  5.  TOTAL REAL PROPERTY ASSETS  $      22,293,977  $     19,544,476  $                    -     $                -     
  SCHEDULE "B"          
  PERSONAL PROPERTY          
  1.  CASH ON HAND  $           580,900  $          480,044      
  2.  CHECKING, SAVINGS, ETC.  $      16,047,077  $     63,925,497      
  3.  SECURITY DEPOSITS  $           806,583  $          893,572      
  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  $          970,520      
  17.  ALIMONY          
  18.  OTHER LIQUIDATED DEBTS          
  19.  EQUITABLE INTERESTS          
  20.  CONTINGENT INTERESTS          
  21.  OTHER CLAIMS  $        5,374,800  $      11,922,685      
  22.  PATENTS & COPYRIGHTS          
  23.  LICENSES & FRANCHISES          
  24.  CUSTOMER LISTS          
  25.  AUTOS, TRUCKS & OTHER VEHICLES  $            23,943  $            21,723      
  26.  BOATS & MOTORS          
  27.  AIRCRAFT          
  28.  OFFICE EQUIPMENT  $      15,234,482  $      15,639,420      
  29.  MACHINERY, FIXTURES & EQUIPMENT  $      65,973,947  $      32,193,929      
  30.  INVENTORY  $    217,542,264  $    101,376,974      
  31.  ANIMALS          
  32.  CROPS          
  33.  FARMING EQUIPMENT          
  34.  FARM SUPPLIES          
  35.  OTHER (ATTACH LIST)          
  36.  TOTAL PERSONAL PROPERTY ASSETS  $    322,473,572  $    227,424,364  $                    -     $                -     
  37.  TOTAL ASSETS  $    344,767,549  $    246,968,840  $                    -     $                -     
             

Page 11 of 15

 

            Monthly Operating Report  
              CASH BASIS-4  
                 
  CASE NAME: Tuesday Morning Corporation, et al.        
           
  CASE NUMBER: 20-31476 (Jointly Administered)        
                   
              MONTH: July  
  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   $         3,059,782       
  4.  OTHER (ATTACH LIST)          
  5.  TOTAL PREPETITION LIABILITIES  $    146,451,982   $       42,170,002       
                   
                   
  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  $               5,277  Various  $                   -     
  OTHER POSTPETITION LIABILITIES INCLUDING TRADE CREDITORS (LIST NAMES OF CREDITORS)  
  7.          
  8.  Total Post-Petition Accounts Payable Various  $        9,885,003  Various  $                   -     
  9.          
  10.          
  11.          
  12.          
  13.          
  14.          
  15.          
  16.          
  17.          
  18.          
  19.  (IF ADDITIONAL ATTACH LIST)          
  20.  TOTAL OF LINES 7 - 19    $        9,885,003     $                   -     
  21.  TOTAL POSTPETITION LIABILITIES    $        9,890,280       $                   -     
                   
  1 Debtors have repaid the Pre-Petition ABL to the required minimum balance of $100,000.  Furthermore,   
  as of July 31, 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: July  
  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  $             5,277   $                   -      $               -      $             5,277   
                   
  6.  ACCOUNTS PAYABLE  $      9,881,005   $               3,998   $               -      $      9,885,003   
                   
  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