TUESDAY MORNING CORP/DE - FORM 8-K - EX-99.1 - EXHBIT 99.1 - January 20, 2021

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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: December   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:              

 

  STACIE SHIRLEY   EVP, Chief Financial Officer  
  ORIGINAL SIGNATURE OF RESPONSIBLE PARTY   TITLE  
         
  STACIE SHIRLEY   January 20, 2021  
  PRINTED NAME OF RESPONSIBLE PARTY   DATE  
       
  PREPARER:      
         
  JASON MUSKOVICH   Director - AlixPartners, LLP  
  ORIGINAL  SIGNATURE  OF  PREPARER   TITLE  
         
  JASON MUSKOVICH   January 20, 2021  
  PRINTED NAME OF PREPARER   DATE  
         
  On December 23, 2020, the Court entered an order [Docket No. 1913] confirming the Debtors’ Second Amended Joint Plan  
  of Reorganization Pursuant to Chapter 11 of the Bankruptcy Code [Docket No. 1633].      
  The Effective Date of the Plan occurred on December 31, 2020 [Docket No. 1934].      
         
  Note 1:  This report covers the period from December 1 through December 31, 2020 unless otherwise noted.  

 

 

 

 

In re: Tuesday Morning Corporation, et al. Case No. (Jointly Administered) 20-31476 (HDH)
  Reporting Period: December 1 to 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].

 

Plan Confirmation and Effective Date:  On December 23, 2020, the Court entered an order [Docket No. 1913] confirming the Debtors’ Second Amended Joint Plan of Reorganization Pursuant to Chapter 11 of the Bankruptcy Code [Docket No. 1633].  The Effective Date of the Plan occurred on December 31, 2020 [Docket No. 1934].

 

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)

 

CASH RECEIPTS AND  OCT   NOV   DEC     
DISBURSEMENTS  1 to 31   1 to 30   1 to 31   TOTAL 
1.  CASH - BEGINNING OF MONTH  $48,904,040   $24,546,517   $21,799,957   $48,904,040 
RECEIPTS                    
2.  CASH SALES 1  $47,768,218   $64,477,256   $84,141,983   $196,387,457 
3.  ACCOUNTS RECEIVABLE COLLECTIONS   -    -    -    - 
4.  LOANS AND ADVANCES 2   87,300,000    73,500,000    93,500,000    254,300,000 
5.  SALE OF ASSETS   -    374,580    -    374,580 
6.  LEASE & RENTAL INCOME   -    -    -    - 
7.  WAGES   -    -    -    - 
8.  OTHER (SEE MONTHLY DETAIL)   17,967,973    4,681,049    10,149,424    32,798,445 
9.  TOTAL RECEIPTS  $153,036,191   $143,032,885   $187,791,407   $483,860,482 
DISBURSEMENTS                    
10.  NET PAYROLL  $10,682,262   $13,594,480   $12,435,316   $36,712,058 
11.  PAYROLL TAXES PAID 3   -    -    -    - 
12.  SALES,USE & OTHER TAXES PAID   4,058,833    4,314,544    5,811,782    14,185,159 
13.  INVENTORY PURCHASES   37,041,327    33,917,984    31,363,127    102,322,438 
14.  MORTAGE PAYMENTS   -    -    -    - 
15.  OTHER SECURED NOTE PAYMENTS 2   87,409,345    73,540,154    93,538,885    254,488,384 
16.  RENTAL & LEASE PAYMENTS 4   9,837,059    5,762,317    8,794,822    24,394,198 
17.  UTILITIES   1,295,911    1,126,853    1,287,630    3,710,395 
18.  INSURANCE   263,066    181,326    524,987    969,379 
19.  VEHICLE EXPENSES 5   5,973,169    7,036,247    7,516,871    20,526,287 
20.  TRAVEL   24,224    41,788    76,112    142,124 
21.  ENTERTAINMENT   -    -    -    - 
22.  REPAIRS & MAINTENANCE   1,158,615    1,008,629    2,140,551    4,307,794 
23.  SUPPLIES   737,769    790,189    980,988    2,508,947 
24.  ADVERTISING   512,060    766,086    1,064,900    2,343,046 
25.  HOUSEHOLD EXPENSES   -    -    -    - 
26.  CHARITABLE CONTRIBUTIONS   -    -    -    - 
27.  GIFTS   -    -    -    - 
28.  OTHER (ORDINARY COURSE PROFESSIONALS)   497,528    438,342    617,055    1,552,926 
29.  TOTAL ORDINARY DISBURSEMENTS  $159,491,170   $142,518,938   $166,153,027   $468,163,135 
REORGANIZATION EXPENSES                    
30.  PROFESSIONAL FEES  $2,476,452   $3,260,506   $5,631,178   $11,368,137 
31.  U.S. TRUSTEE FEES   501,625    -    -    501,625.0 
32.  OTHER (SEE MONTHLY DETAIL)   14,924,467    -    14,397,270    29,321,737 
33.  TOTAL REORGANIZATION EXPENSES 6  $17,902,544   $3,260,506   $20,028,448   $41,191,499 
34.  TOTAL DISBURSEMENTS  $177,393,714   $145,779,445   $186,181,475   $509,354,633 
35.  NET CASH FLOW  $(24,357,523)  $(2,746,560)  $1,609,932   $(25,494,151)
36.  CASH - END OF MONTH  $24,546,517   $21,799,957   $23,409,889   $23,409,889 

 

NOTES:

 

1 Includes all cash and credit card in-store sales.

 

2 Includes all borrowings or repayments against Pre-Petition ABL and Post-Petition DIP.  In accordance with conditions required for Plan Confirmation, the Debtors repaid the outstanding balance of $100,000 on their Pre-Petition ABL on December 31, 2020.

 

3 Included in Net Payroll disbursements item #10

 

4  December disbursements include cure payments related to the assumption of Real Property leases for on-going locations.

 

5 Represents freight disbursements

 

6 December amount includes payments to restructuring professionals, payment of exit financing and closing fees and funding of unpaid pre-petition professional fee escrow as required as a condition of emergence under the Plan.

 

 

    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 
CYQ4/M1 - OCT 1 - 31, 2020  $-   $-   $120,938,772   $-   $-   $-   $56,454,942   $177,393,714 
CYQ4/M2 - NOV 1 - 30, 2020   -    -    106,814,083    -    -    -    38,965,362    145,779,445 
CYQ4/M3 - DEC 1 - 31, 2020   -    -    149,035,493    -    -    -    37,145,982    186,181,475 
                                         
TOTAL DISBURSEMENTS - CALENDAR Q4 2020  $-   $-   $376,788,347   $-   $-   $-   $132,566,286   $509,354,633 
                                         
QUARTERLY FEES DUE  $325.00   $325.00   $250,000.00   $325.00   $325.00   $325.00   $250,000.00   $501,625.00 

 

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 

 

 

 

 

    Monthly Operating Report
CASE NAME: Tuesday Morning Corporation, et al. CASH BASIS-1
    CONSOLIDATING DISBURSEMENTS BY LEGAL ENTITY - OCT 1 TO 31, 2020
CASE NUMBER: 20-31476 (Jointly Administered)  

 

   OCTOBER 1 TO 31, 2020 BY LEGAL ENTITY     
           TMI               TMP     
CASH RECEIPTS AND
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.   OCT 1 - 31 TOTAL 
1.  CASH - BEGINNING OF MONTH  $-   $-   $48,904,040   $-   $-   $-   $-   $48,904,040 
RECEIPTS                                        
2.  CASH SALES 1  $-   $-   $47,768,218   $-   $-   $-   $-   $47,768,218 
3.  ACCOUNTS RECEIVABLE COLLECTIONS   -    -    -    -    -    -    -    - 
4.  LOANS AND ADVANCES 2   -    -    87,300,000    -    -    -    -    87,300,000 
5.  SALE OF ASSETS   -    -    -    -    -    -    -    - 
6.  LEASE & RENTAL INCOME   -    -    -    -    -    -    -    - 
7.  WAGES   -    -    -    -    -    -    -    - 
8.  OTHER (SEE BELOW)  $-   $-   $3,467,973   $-   $-   $-   $14,500,000   $17,967,973 
8a.  SALES TAXES COLLECTED   -    -    3,467,973    -    -    -    -    3,467,973 
8b.  GOB SALES PROCEEDS   -    -    -    -    -    -    -    - 
8c.  POR EARNEST MONEY DEPOSITS   -    -    -    -    -    -    14,500,000    14,500,000 
8d.  EXCESS EXIT FINANCING PROCEEDS   -    -    -    -    -    -    -    - 
9.  TOTAL RECEIPTS  $-   $-   $138,536,191   $-   $-   $-   $14,500,000   $153,036,191 
DISBURSEMENTS                                        
10.  NET PAYROLL  $-   $-   $8,047,443   $-   $-   $-   $2,634,819   $10,682,262 
11.  PAYROLL TAXES PAID 3   -    -    -    -    -    -    -    - 
12.  SALES,USE & OTHER TAXES PAID   -    -    4,058,833    -    -    -    -    4,058,833 
13.  INVENTORY PURCHASES   -    -    -    -    -    -    37,041,327    37,041,327 
14.  MORTAGE PAYMENTS   -    -    -    -    -    -    -    - 
15.  OTHER SECURED NOTE PAYMENTS 2   -    -    87,409,345    -    -    -    -    87,409,345 
16.  RENTAL & LEASE PAYMENTS   -    -    9,516,293    -    -    -    320,765    9,837,059 
17.  UTILITIES   -    -    1,268,045    -    -    -    27,866    1,295,911 
18.  INSURANCE   -    -    263,066    -    -    -    -    263,066 
19.  VEHICLE EXPENSES 4   -    -    4,920,061    -    -    -    1,053,108    5,973,169 
20.  TRAVEL   -    -    24,224    -    -    -    -    24,224 
21.  ENTERTAINMENT   -    -    -    -    -    -    -    - 
22.  REPAIRS & MAINTENANCE   -    -    1,156,374    -    -    -    2,241    1,158,615 
23.  SUPPLIES   -    -    287,420    -    -    -    450,349    737,769 
24.  ADVERTISING   -    -    512,060    -    -    -    -    512,060 
25.  HOUSEHOLD EXPENSES   -    -    -    -    -    -    -    - 
26.  CHARITABLE CONTRIBUTIONS   -    -    -    -    -    -    -    - 
27.  GIFTS   -    -    -    -    -    -    -    - 
28.  OTHER (ORDINARY COURSE PROFESSIONALS)   -    -    497,528    -    -    -    -    497,528 
29.  TOTAL ORDINARY DISBURSEMENTS  $-   $-   $117,960,695   $-   $-   $-   $41,530,475   $159,491,170 
REORGANIZATION EXPENSES                                        
30.  PROFESSIONAL FEES  $-   $-   $2,476,452   $-   $-   $-   $-   $2,476,452 
31.  U.S. TRUSTEE FEES   -    -    501,625    -    -    -    -    501,625 
32.  OTHER (SEE BELOW)  $-   $-   $-   $-   $-   $-   $14,924,467   $14,924,467 
32a.  PRE-PETITION TRADE ORDER PAYMENTS   -    -    -    -    -    -    -    - 
32b.  UTILITIES ESCROW DEPOSITS   -    -    -    -    -    -    -    - 
32c.  POR EARNEST DEPOSITS RELEASED   -    -    -    -    -    -    14,500,000    14,500,000 
32d. AUTHORIZED KERP PAYMENTS   -    -    -    -    -    -    424,467    424,467 
32e. OTHER EMERGENCE ITEMS   -    -    -    -    -    -    -    - 
32f. RESTRUCTURING PROFESSIONAL ESCROW   -    -    -    -    -    -    -    - 
33.  TOTAL REORGANIZATION EXPENSES  $-   $-   $2,978,077   $-   $-   $-   $14,924,467   $17,902,544 
34.  TOTAL DISBURSEMENTS  $-   $-   $120,938,772   $-   $-   $-   $56,454,942   $177,393,714 
35.  NET CASH FLOW  $-   $-   $17,597,419   $-   $-   $-   $(41,954,942)  $(24,357,523)
36.  CASH - END OF MONTH  $-   $-   $66,501,459   $-   $-   $-   $(41,954,942)  $24,546,517 

 

NOTES:
 
1 Includes all cash and credit card in-store sales.
 
2 Includes all borrowings or repayments against Pre-Petition ABL and Post-Petition DIP.  In accordance with conditions required for Plan Confirmation, the Debtors repaid the outstanding balance of $100,000 on their Pre-Petition ABL on December 31, 2020. 
 
3 Included in Net Payroll disbursements item #10
 
4 Represents freight disbursements

 

 

 

 

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

 

   NOVEMBER 1 - 30, 2020 BY LEGAL ENTITY     
           TMI               TMP     
CASH RECEIPTS AND
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.   NOV 1 - 30 TOTAL 
1.  CASH - BEGINNING OF MONTH  $-   $-   $24,546,517   $-   $-   $-   $-   $24,546,517 
RECEIPTS                                        
2.  CASH SALES 1  $-   $-   $64,477,256   $-   $-   $-   $-   $64,477,256 
3.  ACCOUNTS RECEIVABLE COLLECTIONS   -    -    -    -    -    -    -    - 
4.  LOANS AND ADVANCES 2   -    -    73,500,000    -    -    -    -    73,500,000 
5.  SALE OF ASSETS 3   -    -    374,580    -    -    -    -    374,580 
6.  LEASE & RENTAL INCOME   -    -    -    -    -    -    -    - 
7.  WAGES        -               -    -          -    -    -    -    - 
8.  OTHER (SEE BELOW)  $-   $-   $4,681,049   $-   $-   $-   $-   $4,681,049 
8a.  SALES TAXES COLLECTED   -    -    4,681,049    -    -    -    -    4,681,049 
8b.  GOB SALES PROCEEDS   -    -    -    -    -    -    -    - 
8c.  POR EARNEST MONEY DEPOSITS   -    -    -    -    -    -    -    - 
8d.  EXCESS EXIT FINANCING PROCEEDS   -    -    -    -    -    -    -    - 
9.  TOTAL RECEIPTS  $-   $-   $143,032,885   $-   $-   $-   $-   $143,032,885 
DISBURSEMENTS                                        
10.  NET PAYROLL  $-   $-   $9,722,209   $-   $-   $-   $3,872,270   $13,594,480 
11.  PAYROLL TAXES PAID 4   -    -    -    -    -    -    -    - 
12.  SALES,USE & OTHER TAXES PAID   -    -    4,314,544    -    -    -    -    4,314,544 
13.  INVENTORY PURCHASES   -    -    1,000,948    -    -    -    32,917,036    33,917,984 
14.  MORTAGE PAYMENTS   -    -    -    -    -    -    -    - 
15.  OTHER SECURED NOTE PAYMENTS 2   -    -    73,540,154    -    -    -    -    73,540,154 
16.  RENTAL & LEASE PAYMENTS   -    -    5,736,292    -    -    -    26,025    5,762,317 
17.  UTILITIES   -    -    1,126,294    -    -    -    560    1,126,853 
18.  INSURANCE   -    -    181,326    -    -    -    -    181,326 
19.  VEHICLE EXPENSES 5   -    -    5,478,625    -    -    -    1,557,621    7,036,247 
20.  TRAVEL   -    -    41,788    -    -    -    -    41,788 
21.  ENTERTAINMENT   -    -    -    -    -    -    -    - 
22.  REPAIRS & MAINTENANCE   -    -    948,949    -    -    -    59,680    1,008,629 
23.  SUPPLIES   -    -    258,019    -    -    -    532,170    790,189 
24.  ADVERTISING   -    -    766,086    -    -    -    -    766,086 
25.  HOUSEHOLD EXPENSES   -    -    -    -    -    -    -    - 
26.  CHARITABLE CONTRIBUTIONS   -    -    -    -    -    -    -    - 
27.  GIFTS   -    -    -    -    -    -    -    - 
28.  OTHER (ORDINARY COURSE PROFESSIONALS)   -    -    438,342    -    -    -    -    438,342 
29.  TOTAL ORDINARY DISBURSEMENTS  $-   $-   $103,553,576   $-   $-   $-   $38,965,362   $142,518,938 
REORGANIZATION EXPENSES                                        
30.  PROFESSIONAL FEES  $-   $-   $3,260,506   $-   $-   $-   $-   $3,260,506 
31.  U.S. TRUSTEE FEES   -    -    -    -    -    -    -    - 
32.  OTHER (SEE BELOW)  $-   $-   $-   $-   $-   $-   $-   $- 
32a.  PRE-PETITION TRADE ORDER PAYMENTS   -    -    -    -    -    -    -    - 
32b.  UTILITIES ESCROW DEPOSITS   -    -    -    -    -    -    -    - 
32c.  POR EARNEST DEPOSITS RELEASED   -    -    -    -    -    -    -    - 
32d. AUTHORIZED KERP PAYMENTS   -    -    -    -    -    -    -    - 
32e. OTHER EMERGENCE ITEMS   -    -    -    -    -    -    -    - 
32f. RESTRUCTURING PROFESSIONAL ESCROW   -    -    -    -    -    -    -    - 
33.  TOTAL REORGANIZATION EXPENSES  $-   $-   $3,260,506   $-   $-   $-   $-   $3,260,506 
34.  TOTAL DISBURSEMENTS  $-   $-   $106,814,083   $-   $-   $-   $38,965,362   $145,779,445 
35.  NET CASH FLOW  $-   $-   $36,218,802   $-   $-   $-   $(38,965,362)  $(2,746,560)
36.  CASH - END OF MONTH  $-   $-   $60,765,319   $-   $-   $-   $(38,965,362)  $21,799,957 

 

NOTES:
 
1 Includes all cash and credit card in-store sales.
 
2 Includes all borrowings or repayments against Pre-Petition ABL and Post-Petition DIP.  In accordance with conditions required for Plan Confirmation, the Debtors repaid  the outstanding balance of $100,000 on their Pre-Petition ABL on December 31, 2020. 
 
3 Represents receipt of final payment from sale of certain fixed assets in Phoenix distribution center approved in August 2020.  Refer to Final Order on dkt 740 for details.
 
4 Included in Net Payroll disbursements item #10
 
5 Represents freight disbursements

 

 

 

 

          Monthly Operating Report
CASE NAME: Tuesday Morning Corporation, et al.   CASH BASIS-1
          CONSOLIDATING DISBURSEMENTS BY LEGAL ENTITY - DEC 1 TO 31, 2020
CASE NUMBER: 20-31476 (Jointly Administered)    

 

   DECEMBER 1 - 31, 2020 BY LEGAL ENTITY     
           TMI               TMP     
CASH RECEIPTS AND
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.		   DEC 1 - 31
TOTAL		 
1. CASH - BEGINNING OF MONTH  $-   $-   $21,799,957   $-   $-   $-   $-   $21,799,957 
RECEIPTS                                              
2. CASH SALES 1  $-   $-   $84,141,983   $-   $-   $-   $-   $84,141,983 
3. ACCOUNTS RECEIVABLE COLLECTIONS   -    -    -    -    -    -    -    - 
4. LOANS AND ADVANCES 2   -    -    93,500,000    -    -    -    -    93,500,000 
5. SALE OF ASSETS   -    -    -    -    -    -    -    - 
6. LEASE & RENTAL INCOME   -    -    -    -    -    -    -    - 
7. WAGES   -    -    -    -    -    -    -    - 
8. OTHER (SEE BELOW)  $-   $-   $10,149,424   $-   $-   $-   $-   $10,149,424 
8a. SALES TAXES COLLECTED   -    -    6,108,708    -    -    -    -    6,108,708 
8b. GOB SALES PROCEEDS   -    -    -    -    -    -    -    - 
8c. POR EARNEST MONEY DEPOSITS   -    -    -    -    -    -    -    - 
8d. EXCESS EXIT FINANCING PROCEEDS   -    -    4,040,716    -    -    -    -    4,040,716 
9. TOTAL RECEIPTS  $-   $-   $187,791,407   $-   $-   $-   $-   $187,791,407 
DISBURSEMENTS                                        
10. NET PAYROLL  $-   $-   $8,874,071   $-   $-   $-   $3,561,245   $12,435,316 
11. PAYROLL TAXES PAID 3   -    -    -    -    -    -    -    - 
12. SALES,USE & OTHER TAXES PAID   -    -    5,811,782    -    -    -    -    5,811,782 
13. INVENTORY PURCHASES   -    -    34,938    -    -    -    31,328,189    31,363,127 
14. MORTAGE PAYMENTS   -    -    -    -    -    -    -    - 
15. OTHER SECURED NOTE PAYMENTS 2   -    -    93,538,885    -    -    -    -    93,538,885 
16. RENTAL & LEASE PAYMENTS 4   -    -    8,735,047    -    -    -    59,775    8,794,822 
17. UTILITIES   -    -    1,284,194    -    -    -    3,436    1,287,630 
18. INSURANCE   -    -    524,987    -    -    -    -    524,987 
19. VEHICLE EXPENSES 5   -    -    6,330,255    -    -    -    1,186,616    7,516,871 
20. TRAVEL   -    -    76,112    -    -    -    -    76,112 
21. ENTERTAINMENT   -    -    -    -    -    -    -    - 
22. REPAIRS & MAINTENANCE   -    -    1,563,359    -    -    -    577,192    2,140,551 
23. SUPPLIES   -    -    551,458    -    -    -    429,530    980,988 
24. ADVERTISING   -    -    1,064,900    -    -    -    -    1,064,900 
25. HOUSEHOLD EXPENSES   -    -    -    -    -    -    -    - 
26. CHARITABLE CONTRIBUTIONS   -    -    -    -    -    -    -    - 
27. GIFTS   -    -    -    -    -    -    -    - 
28. OTHER (ORDINARY COURSE PROFESSIONALS)   -    -    617,055    -    -    -    -    617,055 
29. TOTAL ORDINARY DISBURSEMENTS  $-   $-   $129,007,045   $-   $-   $-   $37,145,982   $166,153,027 
REORGANIZATION EXPENSES                                        
30. PROFESSIONAL FEES  $-   $-   $5,631,178   $-   $-   $-   $-   $5,631,178 
31. U.S. TRUSTEE FEES   -    -    -    -    -    -    -    - 
32. OTHER (SEE BELOW)  $-   $-   $14,397,270   $-   $-   $-   $-   $14,397,270 
32a. PRE-PETITION TRADE ORDER PAYMENTS   -    -    -    -    -    -    -    - 
32b. UTILITIES ESCROW DEPOSITS   -    -    -    -    -    -    -    - 
32c. POR EARNEST DEPOSITS RELEASED   -    -    -    -    -    -    -    - 
32d. AUTHORIZED KERP PAYMENTS   -    -    -    -    -    -    -    - 
32e. OTHER EMERGENCE ITEMS   -    -    1,207,619    -    -    -    -    1,207,619 
32f. RESTRUCTURING PROFESSIONAL ESCROW   -    -    13,189,651    -    -    -    -    13,189,651 
33. TOTAL REORGANIZATION EXPENSES  $-   $-   $20,028,448   $-   $-   $-   $-   $20,028,448 
34. TOTAL DISBURSEMENTS  $-   $-   $149,035,493   $-   $-   $-   $37,145,982   $186,181,475 
35. NET CASH FLOW  $-   $-   $38,755,914   $-   $-   $-   $(37,145,982)  $1,609,932 
36. CASH - END OF MONTH  $-   $-   $60,555,871   $-   $-   $-   $(37,145,982)  $23,409,889 

 

NOTES:
 
1 Includes all cash and credit card in-store sales.
 
2 Includes all borrowings or repayments against Pre-Petition ABL and Post-Petition DIP.  In accordance with conditions required for Plan Confirmation, the Debtors repaid the outstanding balance of $100,000 on their Pre-Petition ABL on December 31, 2020. 
 
3 Included in Net Payroll disbursements item #10
 
4 Includes cure payments related to the assumption of Real Property leases for on-going locations.
 
5 Represents freight disbursements

 

 

 

 

    Monthly Operating Report
    CASH BASIS-1A
     
    2020
CASE NAME: Tuesday Morning Corporation, et al.  
     
CASE NUMBER: 20-31476 (Jointly Administered)  

 

CASH DISBURSEMENTS DETAIL     MONTH: December
               
CASH DISBURSEMENTS   
  DATE PAYEE PURPOSE AMOUNT
         
         
    SEE NOTE 1 BELOW    
         
         
         
  TOTAL CASH DISBURSEMENTS 1      $ 186,181,475
               
               
BANK ACCOUNT DISBURSEMENTS
CK# DATE PAYEE PURPOSE AMOUNT
         
         
         
    SEE NOTE 2 BELOW    
         
         
         
         
         
         
         
         
         
         
         
         
  TOTAL BANK ACCOUNT DISBURSEMENTS      
               
TOTAL DISBURSEMENTS FOR THE PERIOD        $ 186,181,475

 

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.

 

 

 

 

  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   TOTAL 
A. BANK:  SEE FOLLOWING SCHEDULE OF ACCOUNTS     
B. ACCOUNT NUMBER:                    
C. PURPOSE (TYPE):                    
1. BALANCE PER BANK STATEMENT                 $29,482,775 
2. ADD:TOTAL DEPOSITS NOT CREDITED                 $- 
3. SUBTRACT:OUTSTANDING CHECKS                 $(6,072,886)
4. OTHER RECONCILING ITEMS                 $- 
5. MONTH END BALANCE PER BOOKS  $-   $-   $-   $23,409,889 
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                 $23,409,889  

 

 

 

 

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
December 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   70,497 
Wells Fargo   1020   TMI Main Disbursement  xxx7526   3,067,600 
Wells Fargo   1025   Friday Morning, Inc.  xxx1036   - 
Wells Fargo   1025   TMI - Main Cash Concentration  xxx5063   1,422,510 
Wells Fargo   1025   TMP - Main  xxx0097   6,289,537 
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   19 
People Bank   1045   Store #984 Depository Account  xxx1340   38 
Hancock Bank   1045   Store #598 Depository Account  xxx0914   75 
BBVA/Compass Bank   1045   Stores Depository Account  xxx9325   17,090 
Fifth Third Bank   1045   Stores Depository Account  xxx5683   4,091 
Regions Bank   1045   Stores Depository Account  xxx0300   45,470 
Chase Bank   1045   Stores Depository Account  xxx3000   31,385 
PNC Bank   1045   Stores Depository Account  xxx0704   3,266 
Wells Fargo   1045   Stores Depository Account  xxx4140   - 
Wells Fargo   1045   Stores Depository Account  xxx4488   - 
Bank of America   1045   Stores Depository Account  xxx1681   13,549 
BB&T Bank   1045   Stores Depository Account  xxx5675   9,625 
BancFirst Bank   1045   Store #481 Depository Account  xxx6246   1,376 
International Bank of Commerce   1045   Stores #953,#1017, #1077 & #1191 Depository Account  xxx4877   1,637 
Citizens Bank   1045   Stores Depository Account  xxx5872   200 
US Bank   1045   Stores Depository Account  xxx1357   2,745 
Key Bank   1045   Stores Depository Account  xxx4743   2,160 
Wells Fargo   1056   TMI - ADP - PR Tax & Garnishment  xxx5892   525,480 
Wells Fargo   1056   TMP - ADP - PR Tax & Garnishment  xxx5792   26,041 
Wells Fargo   1062   TMI - Postage  xxx2195   28,778 
Wells Fargo   1070   TMI - Workers Comp  xxx3193   31,203 
Wells Fargo   1082   TMI - UHC Medical  xxx0415   292,033 
Wells Fargo   1091   TMI - CIGNA Dental/STD  xxx6906   151,709 
Wells Fargo   1094   TMI - Tax Saver - FSA  xxx1184   - 
JPMorgan Chase Bank   1099   Cash Holding Account  xxx7366   17,444,661 
Wells Fargo   1100   Wells Fargo Brokerage Services  xxx6142   - 
              $29,482,775 

 

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.

 

 

 

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"
REAL PROPERTY

  SCHEDULE
AMOUNT		   31-Oct-20   30-Nov-20   31-Dec-20 
1.    HQ AND DISTRIBUTION CENTER (AT NBV)  $22,293,977   $19,192,896   $19,077,506   $100 
2.                    
3.                    
4.    OTHER (ATTACH LIST)                    
5.    TOTAL REAL PROPERTY ASSETS  $22,293,977   $19,192,896   $19,077,506   $100 
SCHEDULE "B"                    
PERSONAL PROPERTY                    
1.     CASH ON HAND  $580,900   $415,900   $415,900   $416,200 
2.    CHECKING, SAVINGS, ETC.  $16,047,077   $24,546,517   $21,799,957   $23,409,889 
3.    SECURITY DEPOSITS  $806,583   $892,291   $892,223   $892,385 
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   $953,266   $894,820   $1,769,678 
17.  ALIMONY                    
18.  OTHER LIQUIDATED DEBTS                    
19.  EQUITABLE INTERESTS                    
20.  CONTINGENT INTERESTS                    
21.  OTHER CLAIMS  $5,374,800   $11,295,884   $11,562,240   $19,372,607 
22.  PATENTS & COPYRIGHTS 1  $-   $-   $-   $- 
23.  LICENSES & FRANCHISES 1  $-   $-   $-   $- 
24.  CUSTOMER LISTS 1  $-   $-   $-   $- 
25.  AUTOS, TRUCKS & OTHER VEHICLES  $23,943   $783   $391   $- 
26.  BOATS & MOTORS                    
27.  AIRCRAFT                    
28.  OFFICE EQUIPMENT  $15,234,482   $7,890,130   $7,524,244   $7,819,138 
29.  MACHINERY, FIXTURES & EQUIPMENT  $65,973,947   $35,905,749   $35,403,570   $34,018,929 
30.  INVENTORY  $217,542,264   $127,001,428   $131,138,153   $114,423,688 
31.  ANIMALS                    
32.  CROPS                    
33.  FARMING EQUIPMENT                    
34.  FARM SUPPLIES                    
35.  OTHER (ATTACH LIST)                    
36.  TOTAL PERSONAL PROPERTY ASSETS  $322,473,572   $208,901,948   $209,631,498   $202,122,514 
37.  TOTAL ASSETS  $344,767,549   $228,094,844   $228,709,004   $202,122,614 

 

1 Value of intellectual property and intangibles is excluded as Undetermined,

2 Non Cash Right of Use Assets related to Leased Properties are not included above.

 

 

 

Monthly Operating Report

CASH BASIS-4

 

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

 

    MONTH: December

 

LIABILITIES OF THE ESTATE

 

PREPETITION
LIABILITIES		  SCHEDULE
 AMOUNT		   PAYMENTS 
1.  SECURED 1  $39,210,220   $39,210,220 
2.  PRIORITY 2  $-      
3.  UNSECURED 3, 4  $107,241,762   $9,818,610 
4.  OTHER (ATTACH LIST)          
5.  TOTAL PREPETITION LIABILITIES  $146,451,982   $49,028,830 
           

 

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   $-    Various   $- 
OTHER POSTPETITION LIABILITIES INCLUDING TRADE CREDITORS (LIST NAMES OF CREDITORS)                    
7.                    
8.    Total Post-Petition Accounts Payable   Various   $12,604,717    Various   $- 
9.                    
10.                    
11.                    
12.                    
13.                    
14.                    
15.                    
16.                    
17.                    
18.                    
19.  (IF ADDITIONAL ATTACH LIST)                    
20.  TOTAL OF LINES 7 - 19       $12,604,717        $- 
21.  TOTAL POSTPETITION LIABILITIES       $12,604,717        $- 

 

 

1 In accordance with conditions required for Plan Confirmation, the Debtors repaid the outstanding balance of $100,000 on their Pre-Petition ABL on December 31, 2020.

 

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 Includes cure payments related to Real Property and Other Contracts assumed under Debtors' Plan of Reorganization made on 12/31/2020.

 

 

 

 

    Monthly Operating Report
    CASH BASIS-4A
CASE NAME: Tuesday Morning Corporation, et al.  
   
CASE NUMBER: 20-31476 (Jointly Administered)  

 

    MONTH: December

 

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+    
  DAYS  DAYS   DAYS   Total 
TAXES PAYABLE               
1.  FEDERAL               $- 
2.  STATE               $- 
3.  LOCAL               $- 
4.  OTHER (ATTACH LIST)               $- 
5.  TOTAL TAXES PAYABLE $-  $-   $-   $- 
                   
6.  ACCOUNTS PAYABLE $12,604,717  $-   $-   $12,604,717 

 

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                 $- 
12.  REAL PROPERTY                 $- 
13.  PERSONAL PROPERTY                 $- 
14.  OTHER (ATTACH LIST)                 $- 
15.  TOTAL STATE & LOCAL  $-   $-   $-   $- 
16.  TOTAL TAXES  $-   $-   $-   $- 

 

NOTE:  The Debtors were granted authority under their Tax Order [Dkt 97] to pay certain pre-petition taxes in the ordinary course of business.  To the best of Debtors' information and belief, Debtors are current and remain current in their payment of all taxes included in the tables above.

 

1  Debtors' sales are conducted in real-time in-store.  The Debtors do not offer credit to customers and therefore do not have material Accounts Receivable at any time.  Book A/R, if any, relates primarily to reimbursements due from landlords for tenant improvement allowances authorized under certain real property leases  

 

 

 

 

    Monthly Operating Report
CASE NAME: Tuesday Morning Corporation, et al. CASH BASIS-5
   
CASE NUMBER: 20-31476 (Jointly Administered)  

 

        MONTH: December
           
PAYMENTS TO INSIDERS AND PROFESSIONALS        
           
INSIDERS    
NAME TYPE OF PAYMENT AMOUNT PAID TTL PD TO DATE    
[***] [***] [***] [***]    
[***] [***] [***] [***]    
SEE CERTIFICATION 1 BELOW    
[***] [***] [***] [***]    
[***] [***] [***] [***]    
TOTAL PAYMENTS TO INSIDERS [***] [***]    

 

PROFESSIONALS
   DATE OF COURT ORDER  AMOUNT   AMOUNT   TTL PAID   TOTAL INCURRED 
NAME  AUTHORIZING PAYMENT  APPROVED   PAID   TO DATE   & UNPAID 
1.   Haynes & Boone          $466,707   $3,060,876   $2,166,241 
2.   Squire Patton Boggs           42,793    91,836    52,000 
3.   AlixPartners           1,337,958    5,338,457    1,436,064 
4.   Stifel / Miller Buckfire           120,000    1,244,048    6,047,810 
5.   Vinson & Elkins           1,339,754    2,542,912    - 
6.   Berkley Research Group           331,590    964,190    - 
7.   Montgomery McCracken Walker & Rhoads           229,998    1,558,721    410,487 
8.   BDO           381,987    1,352,312    266,095 
9.   Munsch Hardt           59,081    316,134    113,398 
10. Great American Group  Dkt 197 - 6/9/2020        -    1,995,889    - 
11. A&G Realty Partners  Dkt 139 - 6/2/2020        -    1,728,308    - 
12. Epiq Systems  Dkt 100 - 5/29/2020        469,725    1,324,006    130,000 
13. Merrill Communications           7,707    38,788    - 
14. Willkie Farr & Gallagher           40,000    332,888    - 
15. Pachulski Stang Ziehl & Jones           444,347    444,347    859,438 
16  PJ Solomon           359,532    359,532    837,157 
17  Piper Sandler           -    -    1,623,676 
TOTAL PAYMENTS TO PROFESSIONALS     $-   $5,631,178   $22,693,241   $13,942,3651

 

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS
         
  SCHEDULED AMOUNTS TOTAL
  MONTHLY PAID UNPAID
NAME OF CREDITOR PAYMENTS DURING POST-
  DUE MONTH PETITION
[***] [***] [***] [***]
[***] [***] [***] [***]
SEE CERTIFICATION 2 BELOW
[***] [***] [***] [***]
[***] [***] [***] [***]
6. TOTAL [***] [***] [***]

 

CERTIFICATION 1 - PAYMENTS TO INSIDERS

 

I, STACIE SHIRLEY, hereby certify that only customary wages have been paid to insiders during this reporting period.

There have been no bonuses, loans or other amounts paid aside from ordinary course compensation

 

CERTIFICATION 2 - POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE & ADEQUATE PROTECTION PAYMENTS

 

I, STACIE SHIRLEY, hereby certify that to the best of my knowledge Debtors are current on any and all Post-Petition amounts due on account of Secured Notes, Leases Payable and Adequate Protection Payments

 

1  Per conditions of emergence, Debtors funded an escrow account for the remaining, unpaid balances of professional fees on 12/30/2020.  

 

 

 

 

    Monthly Operating Report
CASE NAME: Tuesday Morning Corporation, et al. CASH BASIS-6
    2020
CASE NUMBER: 20-31476 (Jointly Administered)  

 

    MONTH:             December

 

QUESTIONNAIRE      
      YES NO
1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE
THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?		 X
See Note 1		  
2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT
OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		   X
3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES OR
LOANS) DUE FROM RELATED PARTIES?		   X
4. HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES
THIS REPORTING PERIOD?		 Y
See Note 2		  
5. HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE
DEBTOR FROM ANY PARTY?		 Y
See Note 3		  
6. ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?   X
7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES
PAST DUE?		   X
8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?   X
9. ARE ANY OTHER POSTPETITION TAXES PAST DUE?   X
10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS
DELINQUENT?		   X
11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE
REPORTING PERIOD?		 Y
See Note 4		  
12. ARE ANY WAGE PAYMENTS PAST DUE?   X

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES"; PROVIDE A DETAILED EXPLANATION OF EACH ITEM.  ATTACH ADDITIONAL SHEETS IF NECESSARY.

 

Note 1: In connection with the Confirmed Plan of Reorganization, the Debtors closed a sale-leaseback transaction for their Dallas headquarters and distribution facility on 12/31/2020.  See dkt 1633 for details of this transaction.

 

Note 2: Debtors have made certain payments on Pre-Petition items only where authorized under and in compliance with various orders of the Court including Insurance [dkt 108], Taxes [dkt 97], Wages [dkt 69], Cash Management [dkt 68], Trade [dkt 330].  These disbursements are included on relevant pages within this Monthly Operating Report.  Further, the Debtors paid the $100,000 outstanding amount on their pre-petition ABL on December 31, 2020.

 

Note 3: Debtors have received Post-Petition Financing in accordance with their Motion to Obtain Post-Petition Financing [dkt 19 and dkt 90] and the Interim and Final Orders, thereto [dkt 67 and dkt 331, respectively]

 

These disbursements are included on relevant pages within this Monthly Operating Report.  These facilities terminated upon the Debtors' emergence from Chapter 11 on 12/31/2020 and Debtors' entered into Exit Financing as more fully described in the Confirmed Plan of Reorganization [dkt 1633].

 

Note 4: Debtors have made certain payments on Pre-Petition Taxes only where authorized under and in compliance with related orders of the Court with respect to Tax obligations [dkt 97] These disbursements are included on relevant pages within this Monthly Operating Report.

 

INSURANCE              
                YES NO
1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER
NECESSARY INSURANCE COVERAGES IN EFFECT?		 X  
2. ARE ALL PREMIUM PAYMENTS PAID CURRENT? X  
3. PLEASE ITEMIZE POLICIES BELOW See Note 5  

 

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO" OR IF ANY POLICIES HAVE BEEN CANCELED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW.  ATTACH ADDITIONAL SHEETS IF NECESSARY.

 

Note 5:  Please refer to Debtors' Insurance Motion [dkt 11] for details of all of Debtors' Insurance Policies.

                   
INSTALLMENT PAYMENTS              
TYPE OF     PERIOD PAYMENT AMOUNT
POLICY CARRIER COVERED & FREQUENCY
             
             
SEE NOTE 5 ABOVE            
             
             

 

 

TUESDAY MORNING CORP/DE Reports