(Bloomberg) -- Tuesday Morning Corp. secured a new $25 million loan from a unit of B. Riley Financial Inc. to support the discount retailer through its bankruptcy restructuring.
With the capital, Tuesday Morning has a total of $125 million of debtor-in-possession financing which will allow it to keep operating as stores across the country start to reopen, the company said in a statement Thursday. The $25 million financing from BRF Finance Co. was required under the terms of the company's previously pledged $100 million DIP agreement provided by existing lenders.
Dallas-based Tuesday Morning filed for bankruptcy last week after the coronavirus pandemic forced temporary store closures and drained revenue. The company plans to cut its debt and store-count through the court-supervised process which it expects to wrap up in the early fall.
“This additional capital is an important milestone as it provides significant liquidity for us to continue operations throughout the reorganization process,” Chief Executive Officer Steve Becker said in a statement.
Read More: Tuesday Morning Files for Bankruptcy, Adding to Retail Toll
Tuesday Morning's new financing from B. Riley remains subject to certain conditions including approval from the bankruptcy court, the company said. The retailer won initial approval to access part of its bankruptcy financing at a hearing in front of Judge Harlin Hale.
Founded in 1974, Tuesday Morning is a national off-price retailer that specializes in home goods, textiles, furnishings and related products. It employed about 9,600 people at the end of its 2019 fiscal year, and had almost 700 stores in 39 states, according to a filing in March.
The case is Tuesday Morning Corporation, 20-31476, U.S. Bankruptcy Court for the Northern District of Texas (Dallas)
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