Tuesday Morning, an off-price retailer of home goods and décor that has Montgomery County locations in Rockville and Aspen Hill, announced that it has entered into an agreement to secure $32 million in convertible debt financing from a special purpose vehicle (“SPV”) formed by Retail Ecommerce Ventures LLC (“REV”), the owner of a diverse portfolio of consumer brands that includes Pier 1 Imports (“Pier 1”), Linens ‘n Things, Stein Mart, Modell’s Sporting Goods, and Ayon Capital, LLC (“Ayon”). Additionally, certain members of Tuesday Morning’s management team, including Chief Executive Officer Fred Hand, are providing $3 million in convertible debt financing.
The deal will lead to Pier 1 products being sold in Tuesday Morning stores, something that hasn’t happened since Pier 1 closed all of its stores in 2020. The proceeds from the parties’ investments (collectively, the “Transaction”) are expected to strengthen Tuesday Morning’s balance sheet and allow it to begin executing an omni-channel strategy, which will now include an ecommerce presence and digital activations to complement the Company’s store footprint over the long-term. The Transaction’s terms also provide for the following:
- Tuesday Morning will have access to REV’s fulfillment network, infrastructure and systems, and technology and ecommerce capabilities;
- Tuesday Morning will enter into a new licensing agreement that will allow the Company to sell Pier 1 products
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