0000878726 false TUESDAY MORNING CORP/DE 0000878726 2021-04-21 2021-04-21 iso4217:USD xbrli:shares iso4217:USD xbrli:shares
 

 

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): April 21, 2021

 

 

 

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   TUEM   OTCQX

 

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.

 

On April 21, 2021, the Company and certain of its direct and indirect subsidiaries (collectively with the Company, the “Debtors”)  filed with the Bankruptcy Court for the Northern District of Texas, Dallas Division (the “Bankruptcy Court”), Case No. 20-31476-HDH-11, their quarterly operating report for the period beginning January 1, 2021 and ending March 31, 2021 (the “Quarterly Operating Report”).  The Quarterly 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 Quarterly 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 Quarterly 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 Quarterly Operating Report

 

The Company cautions investors and potential investors not to place undue reliance upon the information contained in the Quarterly 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 Quarterly Operating Report is limited in scope, covers a limited time period and has been prepared solely for the purpose of complying with the reporting requirements of the Bankruptcy Court. The Quarterly 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 Quarterly Operating Report is complete. Results set forth in the Quarterly 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 that are based on management’s current expectations, estimates and projections. 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 challenges that we might face as a result of our emergence from bankruptcy; the Company’s ability to complete its proposed rights offering; the effects and length of the novel coronavirus pandemic; changes in economic and political conditions which may adversely affect consumer spending; our ability to identify and respond to changes in consumer trends and preferences; our ability to mitigate reductions of customer traffic in shopping centers where our stores are located; our ability to continuously attract buying opportunities for off-price merchandise and anticipate consumer demand; our ability to obtain merchandise on varying payment terms; our ability to successfully manage our inventory balances profitably; our ability to effectively manage our supply chain operations; loss of, disruption in operations of, or increased costs in the operation of our distribution center facility; unplanned loss or departure of one or more members of our senior management or other key management; increased or new competition; our ability to maintain and protect our information technology systems and technologies and related improvements to support our growth; increases in fuel prices and changes in transportation industry regulations or conditions; increases in the cost or a disruption in the flow of our imported products; changes in federal tax policy including tariffs; the success of our marketing, advertising and promotional efforts; our ability to attract, train and retain quality employees in appropriate numbers, including key employees and management; increased variability due to seasonal and quarterly fluctuations; our ability to protect the security of information about our business and our customers, suppliers, business partners and employees; our ability to comply with existing, changing and new government regulations; our ability to manage risk to our corporate reputation from our customers, employees and other third parties; our ability to manage litigation risks from our customers, employees and other third parties; our ability to manage the risk associated with product liability claims and product recalls; the impact of adverse local conditions, natural disasters or other events; our ability to manage the negative effects of inventory shrinkage; our ability to manage unexpected costs related to our insurance programs; increased costs or exposure to fraud or theft resulting from payment card industry related risks and regulations; our ability to maintain an effective system of internal controls over financial reporting; impacts from the delisting of our common stock from the Nasdaq Stock Market; 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.

 

99.1Quarterly Operating Report
   
 104Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

 

 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: April 22, 2021 By: /s/ Bridgett C. Zeterberg
    Bridgett C. Zeterberg
    Executive Vice President Human Resources, General Counsel and Corporate Secretary

 

4 

 

Exhibit 99.1

 

FOR THE CALENDAR QUARTER BEGINNING JANUARY 1, 2021 THROUGH MARCH 31, 2021
         
  CASE NAME: Tuesday Morning Corporation, et al.    
         
         
  CASE NUMBER: 20-31476 (Jointly Administered)    
         
         
  UNITED STATES BANKRUPTCY COURT    
         
  NORTHERN AND EASTERN DISTRICTS    
         
   DALLAS AND TYLER DIVISONS    
         
  FOR POST CONFIRMATION USE    
         
         
  QUARTERLY OPERATING REPORT    
         
  AND    
         
  QUARTERLY BANK RECONCILEMENT    
         
  In accordance with Title 28, Section 1746, of the United States Code, I declare under penalty of perjury that I have  
  examined the attached Post Confirmation Quarterly Operating Report, and the Post Confirmation Quarterly Bank  
  Reconcilement 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:      
  Original Signature of Responsible Party  
         
  Printed Name of Responsible Party STACIE SHIRLEY  
       
  Title EVP, CHIEF FINANCIAL OFFICER  
         
  Date April 21, 2021  
         
  PREPARER:      
  Original Signature of Preparer  
         
  Printed Name of Preparer JASON MUSKOVICH  
         
  Title DIRECTOR - ALIXPARTNERS LLP  
         
  Date April 21, 2021  
         
         
         

 

 

 

 

POST CONFIRMATION  
QUARTERLY OPERATING REPORT  
   
CASE NAME:  Tuesday Morning Corporation, et al.  
   
CASE NUMBER:  20-31476 (Jointly Administered)  

 

QUARTER ENDING: March 31, 2021

 

1   BEGINNING OF QUARTER CASH BALANCE:         $ 23,409,889.07  
                   
    CASH RECEIPTS:              
    CASH RECEIPTS DURING CURRENT QUARTER:              
    (a). Cash receipts from business operations     +   $ 162,380,615.60  
    (b). Cash receipts from loan proceeds     +   $ 0.00  
    (c). Cash receipts from contributed capital     +   $ 0.00  
    (d). Cash receipts from tax refunds     +   $ 0.00  
    (e). Cash receipts from other sources     +   $ 148,343,785.46  
2   TOTAL CASH RECEIPTS     =   $ 334,134,290.13  
                   
    CASH DISBURSEMENTS:              
    (A). PAYMENTS MADE UNDER THE PLAN:              
    (I). Administrative     +   $ 0.00  
    (2). Secured Creditors     +   $ 0.00  
    (3). Priority Creditors     +   $ 0.00  
    (4). Unsecured Creditors     +   $ 68,133,799.34  
    (5). Additional Plan Payments     +   $ 3,874,505.10  
    (B). OTHER PAYMENTS MADE THIS QUARTER:              
    (1). General Business     +   $ 187,066,610.50  
    (2). Other Disbursements     +   $ 0.00  
                   
3   TOTAL DISBURSEMENTS THIS QUARTER         $ 259,074,914.94  
                   
4   CASH BALANCE END OF QUARTER     =   $ 75,059,375.19  

 

 

 

 

POST CONFIRMATION  
QUARTERLY OPERATING REPORT  
   
CASE NAME:  Tuesday Morning Corporation, et al.  
   
CASE NUMBER:  20-31476 (Jointly Administered)  

 

QUARTER ENDING: March 31, 2021                TMI               TMP 
         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.
 
1 BEGINNING OF QUARTER CASH BALANCE:   $23,409,889.07                                    
                                           
CASH RECEIPTS:                                          
CASH RECEIPTS DURING CURRENT QUARTER:                                          
(a). Cash receipts from business operations +  $162,380,615.60   $0.00   $0.00   $162,380,615.60   $0.00   $0.00   $0.00   $0.00 
(b). Cash receipts from loan proceeds +  $0.00   $0.00   $0.00   $0.00   $0.00   $0.00   $0.00   $0.00 
(c). Cash receipts from contributed capital +  $0.00   $0.00   $0.00   $0.00   $0.00   $0.00   $0.00   $0.00 
(d). Cash receipts from tax refunds +  $0.00   $0.00   $0.00   $0.00   $0.00   $0.00   $0.00   $0.00 
(e). Cash receipts from other sources +  $148,343,785.46   $0.00   $0.00   $148,343,785.46   $0.00   $0.00   $0.00   $0.00 
2 TOTAL CASH RECEIPTS =  $334,134,290.13   $0.00   $0.00   $310,724,401.06   $0.00   $0.00   $0.00   $0.00 
CASH DISBURSEMENTS:                                          
(A). PAYMENTS MADE UNDER THE PLAN:                                          
(I). Administrative +  $0.00   $0.00   $0.00   $0.00   $0.00   $0.00   $0.00   $0.00 
(2). Secured Creditors +  $0.00   $0.00   $0.00   $0.00   $0.00   $0.00   $0.00   $0.00 
(3). Priority Creditors +  $0.00   $0.00   $0.00   $0.00   $0.00   $0.00   $0.00   $0.00 
(4). Unsecured Creditors +  $68,133,799.34   $0.00   $0.00   $68,133,799.34   $0.00   $0.00   $0.00   $0.00 
(5). Additional Plan Payments +  $3,874,505.10   $0.00   $0.00   $3,874,505.10   $0.00   $0.00   $0.00   $0.00 
(B). OTHER PAYMENTS MADE THIS QUARTER:                                          
(1). General Business +  $187,066,610.50   $0.00   $0.00   $98,074,820.44   $0.00   $0.00   $0.00   $88,991,790.06 
(2). Other Disbursements +  $0.00   $0.00   $0.00   $0.00   $0.00   $0.00   $0.00   $0.00 
3 TOTAL DISBURSEMENTS THIS QUARTER    $259,074,914.94   $0.00   $0.00   $170,083,124.88   $0.00   $0.00   $0.00   $88,991,790.06 
4 CASH BALANCE END OF QUARTER =  $75,059,375.19                                    
                                           
QUARTERLY FEES DUE TO UST    $501,625.00   $325.00   $325.00   $250,000.00   $325.00   $325.00   $325.00   $250,000.00 

 

 

 

 

POST CONFIRMATION  

QUARTERLY BANK RECONCILEMENT

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

 

The reorganized debtor must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposits, governmental obligations, etc. Accounts'with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets for each bank reconcilement if necessary.

 

QUARTER ENDING

 

Bank Reconciliations  Account #1   Account #2   Account #3   Account #4   TOTAL 
A. Bank  SEE FOLLOWING PAGE FOR BANK ACCOUNT DETAILS     
B. Account Number                        
C. Purpose (Type)                        
1 Balance Per Bank Statement                       $4,038,999.84 
2 Add:Total Deposits Not Credited                     +$4,136,000.16 
3 Subtract:Outstanding Checks                       $0.00 
4 Other Reconciling Items                       $0.00 
5 Month End Balance Per Books                    =$8,175,000.00 
6 Number of Last Check Written                        
7 Cash: Currency on Hand                     +$0.00 
8 Total Cash - End Of Month                        $8,175,000.00 

 

CASH IN: INVESTMENT ACCOUNTS

 

    Date of    Type of            
Bank, Account Name & Number   Purchase    Instrument         Value 
9 Signature Bank ***4664 - GUC Escrow Account                 +$46,252,962.43 
10 Signature Bank ***4672 - Allowed Claims Disbursement Account                 +$11,316,267.02 
11 Wells Fargo ***2400 - Professional Fee Escrow Account                 +$9,315,145.74 
12                  +  
13 Total Cash Investments                =$66,884,375.19 
14 TOTAL CASH

LINE 8 - PLUS LINE 13 = LINE 14 ****

        75,059,375.19
                   ****

 

**** Must tie to Line 4, Quarterly Operating Report

 

 

 

POST CONFIRMATION  

QUARTERLY BANK RECONCILEMENT

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

 

The reorganized debtor must complete the reconciliation below for each bank account, including all general, payroll and tax accounts, as well as all savings and investment accounts, money market accounts, certificates of deposits, governmental obligations, etc. Accounts'with restricted funds should be identified by placing an asterisk next to the account number. Attach additional sheets for each bank reconcilement if necessary.    

 

QUARTER ENDING:

GL  Bank Name  Acct Number  Nature of Account  3/31 Bank Balance
1013  Wells Fargo  ***3007  TMI - AP - NACHA ACH   -
1013  Wells Fargo  ***3015  TMP - AP - NACHA ACH   -
1015  Wells Fargo  ***4381  TMI - Property Tax   -
1018  Wells Fargo  ***3495  TMI - Sale Tax II   168,733.65
1020  Wells Fargo  ***7526  TMI Main Disbursement   162,008.15
1025  Wells Fargo  ***1036  Friday Morning, Inc.   -
1025  Wells Fargo  ***5063  TMI - Main Cash Concentration   14,200.03
1025  Wells Fargo  ***0097  TMP - Main   103,367.06
1025  Bank of America  ***5718  TMP - DP Payments   -
1032  Wells Fargo  ***8307  TMI - Visa/MC   -
1033  Wells Fargo  ***8299  TMI - Discover   -
1034  Wells Fargo  ***7708  TMI - American Express   -
1045  Community First National  ***9812  Store #863 Depository Account   -
1045  People Bank  ***1340  Store #984 Depository Account   4,135.85
1045  Hancock Bank  ***0914  Store #598 Depository Account   14,030.90
1045  BBVA/Compass Bank  ***9325  Stores Depository Account   45,361.27
1045  Fifth Third Bank  ***5683  Stores Depository Account   10,879.64
1045  Regions Bank  ***0300  Stores Depository Account   42,053.77
1045  Chase Bank  ***3000  Stores Depository Account   71,566.78
1045  PNC Bank  ***0704  Stores Depository Account   26,877.04
1045  Wells Fargo  ***4140  Stores Depository Account   -
1045  Wells Fargo  ***4488  Stores Depository Account   -
1045  Bank of America  ***1681  Stores Depository Account   42,213.15
1045  BB&T Bank  ***5675  Stores Depository Account   39,116.40
1045  BancFirst Bank  ***6246  Store #481 Depository Account   2,556.25
1045  International Bank of Commerce  ***4877  Stores #953,#1017, #1077 & #1191 Depository Account   3,260.58
1045  Citizens Bank  ***5872  Stores Depository Account   -
1045  US Bank  ***1357  Stores Depository Account   13,498.37
1045  Key Bank  ***4743  Stores Depository Account   4,129.37
1056  Wells Fargo  ***5892  TMI - ADP - PR Tax & Garnishment   591,838.11
1056  Wells Fargo  ***5792  TMP - ADP - PR Tax & Garnishment   33,867.83
1062  Wells Fargo  ***2195  TMI - Postage   28,728.17
1070  Wells Fargo  ***3193  TMI - Workers Comp   552.43
1082  Wells Fargo  ***0415  TMI - UHC Medical   73,683.00
1091  Wells Fargo  ***6906  TMI - CIGNA Dental/STD   118,447.74
1094  Wells Fargo  ***1184  TMI - Tax Saver - FSA   -
1099  JPMorgan Chase Bank  ***7366  Cash Holding Account   2,423,894.30
1100  Wells Fargo  ***6142  Wells Fargo Brokerage Services   -
TOTAL:            4,038,999.84