KBRA Credit Profile Releases Research: Will Tuesday Morning Make It to the Weekend?

NEW YORK--(BUSINESS WIRE)--KBRA Credit Profile (KCP), a division of KBRA Analytics, releases research on CMBS exposure to discount retailer Tuesday Morning amid operational struggles. The company has struggled to find its footing after emerging from a pandemic-driven Chapter 11 bankruptcy in January 2021, and it recently engaged Piper Sandler to explore restructuring options. Tuesday Morning executives believe the company’s $35 million in liquidity as of its fiscal Q3 2022 (ended April 2) will sustain operations for another 12 months. However, total debt rose from $25.4 million last year to $83.6 million through fiscal Q3 2022, and guidance on Q4 2022 comparable store sales was lowered in May.

KCP identified 71 properties collateralizing the same number of loans—$1.07 billion by allocated loan amount (ALA)—across 72 CMBS transactions with exposure to a Tuesday Morning location. Should the company opt to restructure a second time, leases on underperforming stores could be rejected through Chapter 11 proceedings. The company permanently closed 200 stores in 2020-21 and partnered with predictive analytics firm Intalytics in July 2022 to optimize its brick-and-mortar footprint.

Click here to view the report and, for subscribers of the KCP platform, access a list of the CMBS loans and properties with exposure to Tuesday Morning.

About KBRA Credit Profile

KBRA Credit Profile (KCP) is a research service and nothing herein or otherwise provided by KCP shall be construed as a rating. Any rating opinions, analysis, projections, observations, data or other items constituting part of any information provided or distributed by KCP or KBRA are and must be construed solely as statements of opinion and not statements of fact.

About KBRA Analytics

KBRA Analytics, LLC (KBRA Analytics) is our premier product platform for high quality data and advanced analytics. Our seasoned teams of industry specialists across each product provide unparalleled insight creating a foundation of deeper analysis and rapid discovery for users. KBRA Analytics is an affiliate of Kroll Bond Rating Agency, LLC (KBRA). KBRA is a full-service credit rating agency registered in the U.S., designated to provide structured finance ratings in Canada, and with credit rating affiliates registered in the EU and UK.