Tuesday Morning drops after debt refinancing deal with Pier 1 Imports owner
12/09/2022 14:54
** Shares of discount retailer Tuesday Morning Corp TUEM.O
are down 23.5% to $0.215 - stock's lowest level in over a month
** Co said on Friday it has entered into $35 mln convertible
debt financing deal from a special purpose vehicle (SPV) that
includes owner of Pier 1 Imports Retail Ecommerce Ventures, Ayon
Capital and existing management, including CEO Fred Hand
** An SPV is a subsidiary created by a parent company to
isolate financial risk
** TUEM had been reporting losses since 2020 owing to
inflation and supply chain disruptions, and was exploring second
bankruptcy in less than two years, according to a media report
in July urn:newsml:reuters.com:*:nL4N2Z03NX
** The deal will result in a 'change of control' on TUEM,
including reconstituting board of directors, with Retail
Ecommerce Ventures and Ayon having their picks comprise a
majority of the Board, while Hand will remain the CEO
** Two of three brokerages rate stock "buy", one "hold";
their median PT is $0.20 - Refinitiv data
** Up to Friday's close, stock had fallen 87.65% YTD
(Reporting by Shristi Achar A)
((Shristi.AcharA@thomsonreuters.com;))