TUESDAY MORNING CORP/DE - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - TUESDAY MORNING CORP/DE	tm2031361d1_8k.htm

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:		August		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:

					EVP, Chief Financial Officer
	ORIGINAL SIGNATURE OF RESPONSIBLE PARTY				TITLE

	STACIE SHIRLEY				September 18, 2020
	PRINTED NAME OF RESPONSIBLE PARTY				DATE



	PREPARER:

					Director - AlixPartners, LLP
	ORIGINAL SIGNATURE OF PREPARER				TITLE

	JASON MUSKOVICH				September 18, 2020
	PRINTED NAME OF PREPARER				DATE

	Note 1: This report covers the period from August 1 through August 31, 2020 unless otherwise noted.

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

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)

		JUL	AUG	SEP
CASH RECEIPTS AND		1 to 31	1 to 31	1 to 30	TOTAL
DISBURSEMENTS
1. CASH - BEGINNING OF MONTH		$ 40,366,078	$ 63,925,497	$ -	$ 40,366,078
RECEIPTS
2. CASH SALES ¹		$ 51,714,136	$ 47,862,526	$ -	$ 99,576,661
3. ACCOUNTS RECEIVABLE COLLECTIONS		-	-	-	-
4. LOANS AND ADVANCES ²		49,500,000	31,200,000	-	80,700,000
5. SALE OF ASSETS		-	-	-	-
6. LEASE & RENTAL INCOME		-	-	-	-
7. WAGES		-	-	-	-
8. OTHER (SEE MONTHLY DETAIL)		16,613,457	7,584,269	-	24,197,727
9. TOTAL RECEIPTS		$ 117,827,593	$ 86,646,795	$ -	$ 204,474,388
DISBURSEMENTS
10. NET PAYROLL		$ 10,187,291	$ 10,537,203	$ -	$ 20,724,495
11. PAYROLL TAXES PAID ³		-	-	-	-
12. SALES,USE & OTHER TAXES PAID		6,558,835	5,098,345	-	11,657,179
13. INVENTORY PURCHASES		9,186,713	24,224,586	-	33,411,298
14. MORTAGE PAYMENTS		-	-	-	-
15. OTHER SECURED NOTE PAYMENTS ²		49,687,500	31,200,000	-	80,887,500
16. RENTAL & LEASE PAYMENTS		6,989,972	5,413,060	-	12,403,032
17. UTILITIES		724,189	1,752,689	-	2,476,878
18. INSURANCE		439,571	210,710	-	650,281
19. VEHICLE EXPENSES ⁴		1,774,994	3,123,092	-	4,898,087
20. TRAVEL		220,064	64,363	-	284,427
21. ENTERTAINMENT		-	-	-	-
22. REPAIRS & MAINTENANCE		1,457,039	661,365	-	2,118,404
23. SUPPLIES		377,343	586,347	-	963,690
24. ADVERTISING		158,085	342,732	-	500,818
25. HOUSEHOLD EXPENSES		-	-	-	-
26. CHARITABLE CONTRIBUTIONS		-	-	-	-
27. GIFTS		-	-	-	-
28. OTHER (ORDINARY COURSE PROFESSIONALS)		495,895	316,391	-	812,286
29. TOTAL ORDINARY DISBURSEMENTS		$ 88,257,491	$ 83,530,883	$ -	$ 171,788,374
REORGANIZATION EXPENSES
30. PROFESSIONAL FEES		$ 5,268,345	$ 3,091,633	$ -	$ 8,359,978
31. U.S. TRUSTEE FEES		285,323	-	-	285,323.0
32. OTHER (SEE MONTHLY DETAIL)		457,015	106,910	-	563,925
33. TOTAL REORGANIZATION EXPENSES		$ 6,010,682	$ 3,198,543	$ -	$ 9,209,225
34. TOTAL DISBURSEMENTS		$ 94,268,173	$ 86,729,426	$ -	$ 180,997,599
35. NET CASH FLOW		$ 23,559,419	$ (82,631)	$ -	$ 23,476,788
36. CASH - END OF MONTH		$ 63,925,497	$ 63,842,866	$ -	$ 63,842,866

NOTES:

^! Includes all cash and credit card in-store sales.

² Includes all borrowings or repayments against Pre-Petition ABL and Post-Petition DIP. Debtors have repaid the Pre-Petition ABL to the required minimum balance of $100,000. Furthermore, as of August 31, 2020 the Debtors have no outstanding borrowings against either their Post-Petition ABL DIP or their DIP Term Loan.

³ Included in Net Payroll disbursements item #10

⁴ Represents freight disbursements

Page 3 of 15

								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

Q2/M1 - JUL 1 - JUL 31, 2020			$ -	$ -	$ 82,440,911	$ -	$ -	$ -	$ 11,827,262	$ 94,268,173
Q2/M2 - AUG 1 - AUG 31, 2020			-	-	62,957,724	-	-	-	23,771,702	86,729,426
Q2/M3 - SEP 1 - SEP 30, 2020			-	-	-	-	-	-	-	-

TOTAL DISBURSEMENTS - CALENDAR Q3 2020			$ -	$ -	$ 145,398,636	$ -	$ -	$ -	$ 35,598,964	$ 180,997,599

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

Page 4 of 15

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

	JULY 1 - JULY 31, 2020 BY LEGAL ENTITY
			TMI				TMP
CASH RECEIPTS AND	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.	JUL 1 - JUL 31 TOTAL
DISBURSEMENTS
1. CASH - BEGINNING OF MONTH	$ -	$ -	$ 40,366,078	$ -	$ -	$ -	$ -	$ 40,366,078
RECEIPTS
2. CASH SALES ¹	$ -	$ -	$ 51,714,136	$ -	$ -	$ -	$ -	$ 51,714,136
3. ACCOUNTS RECEIVABLE COLLECTIONS	-	-	-	-	-	-	-	-
4. LOANS AND ADVANCES ²	-	-	49,500,000	-	-	-	-	49,500,000
5. SALE OF ASSETS	-	-	-	-	-	-	-	-
6. LEASE & RENTAL INCOME	-	-	-	-	-	-	-	-
7. WAGES	-	-	-	-	-	-	-	-
8. OTHER (SEE BELOW)	$ -	$ -	$ 16,613,457	$ -	$ -	$ -	$ -	$ 16,613,457
8a. Sales Taxes Collected	-	-	3,754,446	-	-	-	-	3,754,446
8b. GOB Sales Proceeds	-	-	12,859,011	-	-	-	-	12,859,011
9. TOTAL RECEIPTS	$ -	$ -	$ 117,827,593	$ -	$ -	$ -	$ -	$117,827,593
DISBURSEMENTS
10. NET PAYROLL	$ -	$ -	$ 8,571,146	$ -	$ -	$ -	$ 1,616,146	$ 10,187,291
11. PAYROLL TAXES PAID ³	-	-	-	-	-	-	-	-
12. SALES,USE & OTHER TAXES PAID	-	-	6,558,835	-	-	-	-	6,558,835
13. INVENTORY PURCHASES	-	-	-	-	-	-	9,186,713	9,186,713
14. MORTAGE PAYMENTS	-	-	-	-	-	-	-	-
15. OTHER SECURED NOTE PAYMENTS ²	-	-	49,687,500	-	-	-	-	49,687,500
16. RENTAL & LEASE PAYMENTS	-	-	6,707,732	-	-	-	282,240	6,989,972
17. UTILITIES	-	-	723,649	-	-	-	540	724,189
18. INSURANCE	-	-	439,571	-	-	-	-	439,571
19. VEHICLE EXPENSES ⁴	-	-	1,321,765	-	-	-	453,229	1,774,994
20. TRAVEL	-	-	220,064	-	-	-	-	220,064
21. ENTERTAINMENT	-	-	-	-	-	-	-	-
22. REPAIRS & MAINTENANCE	-	-	1,438,961	-	-	-	18,079	1,457,039
23. SUPPLIES	-	-	308,640	-	-	-	68,704	377,343
24. ADVERTISING	-	-	158,085	-	-	-	-	158,085
25. HOUSEHOLD EXPENSES	-	-	-	-	-	-	-	-
26. CHARITABLE CONTRIBUTIONS	-	-	-	-	-	-	-	-
27. GIFTS	-	-	-	-	-	-	-	-
28. OTHER (ORDINARY COURSE PROFESSIONALS)	-	-	495,895	-	-	-	-	495,895
29. TOTAL ORDINARY DISBURSEMENTS	$ -	$ -	$ 76,631,841	$ -	$ -	$ -	$ 11,625,650	$ 88,257,491
REORGANIZATION EXPENSES
30. PROFESSIONAL FEES	$ -	$ -	$ 5,268,345	$ -	$ -	$ -	$ -	$ 5,268,345
31. U.S. TRUSTEE FEES	-	-	285,323	-	-	-	-	285,323
32. OTHER (SEE BELOW)	$ -	$ -	$ 255,403	$ -	$ -	$ -	$ 201,612	$ 457,015
32a. PRE-PETITION TRADE ORDER PAYMENTS	-	-	31,792	-	-	-	201,612	233,404
32b. UTILITIES ESCROW DEPOSITS	-	-	223,611	-	-	-	-	223,611
33. TOTAL REORGANIZATION EXPENSES	$ -	$ -	$ 5,809,070	$ -	$ -	$ -	$ 201,612	$ 6,010,682
34. TOTAL DISBURSEMENTS	$ -	$ -	$ 82,440,911	$ -	$ -	$ -	$ 11,827,262	$ 94,268,173
35. NET CASH FLOW	$ -	$ -	$ 35,386,682	$ -	$ -	$ -	$(11,827,262)	$ 23,559,419
36. CASH - END OF MONTH	$ -	$ -	$ 75,752,759	$ -	$ -	$ -	$(11,827,262)	$ 63,925,497

NOTES:

^! Includes all cash and credit card in-store sales.

²Includes all borrowings or repayments against Pre-Petition ABL and Post-Petition DIP. Debtors have repaid the Pre-Petition ABL to the required minimum balance of $100,000. Furthermore, as of July 31, 2020 the Debtors have no outstanding borrowings against either their Post-Petition ABL DIP or their DIP Term Loan.

³ Included in Net Payroll disbursements item #10

⁴ Represents freight disbursements

Page 5 of 15

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


	AUGUST 1 - AUGUST 31, 2020 BY LEGAL ENTITY
			TMI				TMP
CASH RECEIPTS AND	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.	AUG 1 - AUG 31 TOTAL
DISBURSEMENTS
1. CASH - BEGINNING OF MONTH	$ -	$ -	$ 63,925,497	$ -	$ -	$ -	$ -	$ 63,925,497
RECEIPTS
2. CASH SALES ¹	$ -	$ -	$ 47,862,526	$ -	$ -	$ -	$ -	$ 47,862,526
3. ACCOUNTS RECEIVABLE COLLECTIONS	-	-	-	-	-	-	-	-
4. LOANS AND ADVANCES ²	-	-	31,200,000	-	-	-	-	31,200,000
5. SALE OF ASSETS	-	-	-	-	-	-	-	-
6. LEASE & RENTAL INCOME	-	-	-	-	-	-	-	-
7. WAGES	-	-	-	-	-	-	-	-
8. OTHER (SEE BELOW)	$ -	$ -	$ 7,584,269	$ -	$ -	$ -	$ -	$ 7,584,269
8a. Sales Taxes Collected	-	-	3,474,819	-	-	-	-	3,474,819
8b. GOB Sales Proceeds	-	-	4,109,450	-	-	-	-	4,109,450
9. TOTAL RECEIPTS	$ -	$ -	$ 86,646,795	$ -	$ -	$ -	$ -	$ 86,646,795
DISBURSEMENTS
10. NET PAYROLL	$ -	$ -	$ 8,792,138	$ -	$ -	$ -	$ 1,745,065	$ 10,537,203
11. PAYROLL TAXES PAID ³	-	-	-	-	-	-	-	-
12. SALES,USE & OTHER TAXES PAID	-	-	5,098,345	-	-	-	-	5,098,345
13. INVENTORY PURCHASES	-	-	3,452,859	-	-	-	20,771,727	24,224,586
14. MORTAGE PAYMENTS	-	-	-	-	-	-	-	-
15. OTHER SECURED NOTE PAYMENTS ²	-	-	31,200,000	-	-	-	-	31,200,000
16. RENTAL & LEASE PAYMENTS	-	-	5,130,820	-	-	-	282,240	5,413,060
17. UTILITIES	-	-	1,751,985	-	-	-	704	1,752,689
18. INSURANCE	-	-	210,710	-	-	-	-	210,710
19. VEHICLE EXPENSES ⁴	-	-	2,454,929	-	-	-	668,163	3,123,092
20. TRAVEL	-	-	64,363	-	-	-	-	64,363
21. ENTERTAINMENT	-	-	-	-	-	-	-	-
22. REPAIRS & MAINTENANCE	-	-	655,954	-	-	-	5,410	661,365
23. SUPPLIES	-	-	357,562	-	-	-	228,785	586,347
24. ADVERTISING	-	-	342,732	-	-	-	-	342,732
25. HOUSEHOLD EXPENSES	-	-	-	-	-	-	-	-
26. CHARITABLE CONTRIBUTIONS	-	-	-	-	-	-	-	-
27. GIFTS	-	-	-	-	-	-	-	-
28. OTHER (ORDINARY COURSE PROFESSIONALS)	-	-	316,391	-	-	-	-	316,391
29. TOTAL ORDINARY DISBURSEMENTS	$ -	$ -	$ 59,828,789	$ -	$ -	$ -	$ 23,702,094	$ 83,530,883
REORGANIZATION EXPENSES
30. PROFESSIONAL FEES	$ -	$ -	$ 3,091,633	$ -	$ -	$ -	$ -	$ 3,091,633
31. U.S. TRUSTEE FEES	-	-	-	-	-	-	-	-
32. OTHER (SEE BELOW)	$ -	$ -	$ 37,302	$ -	$ -	$ -	$ 69,608	$ 106,910
32a. PRE-PETITION TRADE ORDER PAYMENTS	-	-	5,516	-	-	-	69,608	75,124
32b. UTILITIES ESCROW DEPOSITS	-	-	31,786	-	-	-	-	31,786
33. TOTAL REORGANIZATION EXPENSES	$ -	$ -	$ 3,128,935	$ -	$ -	$ -	$ 69,608	$ 3,198,543
34. TOTAL DISBURSEMENTS	$ -	$ -	$ 62,957,724	$ -	$ -	$ -	$ 23,771,702	$ 86,729,426
35. NET CASH FLOW	$ -	$ -	$ 23,689,071	$ -	$ -	$ -	$ (23,771,702)	$ (82,631)
36. CASH - END OF MONTH	$ -	$ -	$ 87,614,568	$ -	$ -	$ -	$ (23,771,702)	$ 63,842,866

NOTES:

^! Includes all cash and credit card in-store sales.

² Includes all borrowings or repayments against Pre-Petition ABL and Post-Petition DIP. Debtors have repaid the Pre-Petition ABL to the required minimum balance of $100,000. Furthermore, as of August 31, 2020 the Debtors have no outstanding borrowings against either their Post-Petition ABL DIP or their DIP Term Loan.

³ Included in Net Payroll disbursements item #10

⁴ Represents freight disbursements

Page 6 of 15

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

	SEPTEMBER 1 - SEPTEMBER 30, 2020 BY LEGAL ENTITY
			TMI				TMP
CASH RECEIPTS AND	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.	SEP 1 - SEP 30 TOTAL
DISBURSEMENTS
1. CASH - BEGINNING OF MONTH	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
RECEIPTS
2. CASH SALES ¹	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
3. ACCOUNTS RECEIVABLE COLLECTIONS	-	-	-	-	-	-	-	-
4. LOANS AND ADVANCES ²	-	-	-	-	-	-	-	-
5. SALE OF ASSETS	-	-	-	-	-	-	-	-
6. LEASE & RENTAL INCOME	-	-	-	-	-	-	-	-
7. WAGES	-	-	-	-	-	-	-	-
8. OTHER (SEE BELOW)	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
8a. Sales Taxes Collected	-	-	-	-	-	-	-	-
8b. GOB Sales Proceeds	-	-	-	-	-	-	-	-
9. TOTAL RECEIPTS	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
DISBURSEMENTS
10. NET PAYROLL	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
11. PAYROLL TAXES PAID ³	-	-	-	-	-	-	-	-
12. SALES,USE & OTHER TAXES PAID	-	-	-	-	-	-	-	-
13. INVENTORY PURCHASES	-	-	-	-	-	-	-	-
14. MORTAGE PAYMENTS	-	-	-	-	-	-	-	-
15. OTHER SECURED NOTE PAYMENTS ²	-	-	-	-	-	-	-	-
16. RENTAL & LEASE PAYMENTS	-	-	-	-	-	-	-	-
17. UTILITIES	-	-	-	-	-	-	-	-
18. INSURANCE	-	-	-	-	-	-	-	-
19. VEHICLE EXPENSES ⁴	-	-	-	-	-	-	-	-
20. TRAVEL	-	-	-	-	-	-	-	-
21. ENTERTAINMENT	-	-	-	-	-	-	-	-
22. REPAIRS & MAINTENANCE	-	-	-	-	-	-	-	-
23. SUPPLIES	-	-	-	-	-	-	-	-
24. ADVERTISING	-	-	-	-	-	-	-	-
25. HOUSEHOLD EXPENSES	-	-	-	-	-	-	-	-
26. CHARITABLE CONTRIBUTIONS	-	-	-	-	-	-	-	-
27. GIFTS	-	-	-	-	-	-	-	-
28. OTHER (ORDINARY COURSE PROFESSIONALS)	-	-	-	-	-	-	-	-
29. TOTAL ORDINARY DISBURSEMENTS	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
REORGANIZATION EXPENSES
30. PROFESSIONAL FEES	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
31. U.S. TRUSTEE FEES	-	-	-	-	-	-	-	-
32. OTHER (SEE BELOW)	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
32a. PRE-PETITION TRADE ORDER PAYMENTS	-	-	-	-	-	-	-	-
32b. UTILITIES ESCROW DEPOSITS	-	-	-	-	-	-	-	-
33. TOTAL REORGANIZATION EXPENSES	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
34. TOTAL DISBURSEMENTS	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
35. NET CASH FLOW	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
36. CASH - END OF MONTH	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -

NOTES:

^! Includes all cash and credit card in-store sales.

²Includes all borrowings or repayments against Pre-Petition ABL and Post-Petition DIP. Debtors have repaid the Pre-Petition ABL to the required minimum balance of $100,000. Furthermore, as of August 31, 2020 the Debtors have no outstanding borrowings against either their Post-Petition ABL DIP or their DIP Term Loan.

³ Included in Net Payroll disbursements item #10

⁴ Represents freight disbursements

Page 7 of 15

			Monthly Operating Report
					CASH BASIS-1A

						2020
CASE NAME:	Tuesday Morning Corporation, et al.

CASE NUMBER:	20-31476 (Jointly Administered)

CASH DISBURSEMENTS DETAIL				MONTH:	August

CASH DISBURSEMENTS
	DATE	PAYEE		PURPOSE		AMOUNT


		SEE NOTE 1 BELOW



	TOTAL CASH DISBURSEMENTS ¹					$ -


BANK ACCOUNT DISBURSEMENTS
CK#	DATE	PAYEE		PURPOSE		AMOUNT



		SEE NOTE 2 BELOW












	TOTAL BANK ACCOUNT DISBURSEMENTS					$ 86,729,426


TOTAL DISBURSEMENTS FOR THE PERIOD						$ 86,729,426

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.

Page 8 of 15

			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
A. BANK:	SEE FOLLOWING SCHEDULE OF ACCOUNTS
B. ACCOUNT NUMBER:					TOTAL
C. PURPOSE (TYPE):
1. BALANCE PER BANK STATEMENT					$ 70,264,381
2. ADD: TOTAL DEPOSITS NOT CREDITED					$ -
3. SUBTRACT: OUTSTANDING CHECKS					$ (6,421,514)
4. OTHER RECONCILING ITEMS					$ -
5. MONTH END BALANCE PER BOOKS		$ -	$ -	$ -	$ 63,842,866
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					$ 63,842,866

Page 9 of 15

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

Nature of Account

Account Number

Balance as of August 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

213,446

Wells Fargo

1020

TMI Main Disbursement

xxx7526

1,865,924

Wells Fargo

1025

Friday Morning, Inc.

xxx1036

Wells Fargo

1025

TMI - Main Cash Concentration

xxx5063

4,972,956

Wells Fargo

1025

TMP - Main

xxx0097

4,469,807

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

People Bank

1045

Store #984 Depository Account

xxx1340

2,831

Hancock Bank

1045

Store #598 Depository Account

xxx0914

1,807

BBVA/Compass Bank

1045

Stores Depository Account

xxx9325

20,086

Fifth Third Bank

1045

Stores Depository Account

xxx5683

6,997

Regions Bank

1045

Stores Depository Account

xxx0300

107,985

Chase Bank

1045

Stores Depository Account

xxx3000

351,904

PNC Bank

1045

Stores Depository Account

xxx0704

33,074

Wells Fargo

1045

Stores Depository Account

xxx4140

Wells Fargo

1045

Stores Depository Account

xxx4488

Bank of America

1045

Stores Depository Account

xxx1681

74,374

BB&T Bank

1045

Stores Depository Account

xxx5675

45,935

BancFirst Bank

1045

Store #481 Depository Account

xxx6246

1,531

International Bank of Commerce

1045

Stores #953,#1017, #1077 & #1191 Depository Account

xxx4877

5,896

Citizens Bank

1045

Stores Depository Account

xxx5872

8,703

US Bank

1045

Stores Depository Account

xxx1357

24,527

Key Bank

1045

Stores Depository Account

xxx4743

9,178

Wells Fargo

1056

TMI - ADP - PR Tax & Garnishment

xxx5892

380,322

Wells Fargo

1056

TMP - ADP - PR Tax & Garnishment

xxx5792

13,626

Wells Fargo

1062

TMI - Postage

xxx2195

265,925

Wells Fargo

1070

TMI - Workers Comp

xxx3193

983

Wells Fargo

1082

TMI - UHC Medical

xxx0415

168,003

Wells Fargo

1091

TMI - CIGNA Dental/STD

xxx6906

169,727

Wells Fargo

1094

TMI - Tax Saver - FSA

xxx1184

JPMorgan Chase Bank

1099

Cash Holding Account

xxx7366

57,048,798

Wells Fargo

1100

Wells Fargo Brokerage Services

xxx6142

$ 70,264,381

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.

Page 10 of 15

			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"		SCHEDULE AMOUNT	31-Jul-20	31-Aug-20	30-Sep-20
REAL PROPERTY		SCHEDULE AMOUNT
1. HQ AND DISTRIBUTION CENTER (AT NBV)		$ 22,293,977	$ 19,544,476	$ 19,436,855
2.
3.
4. OTHER (ATTACH LIST)
5. TOTAL REAL PROPERTY ASSETS		$ 22,293,977	$ 19,544,476	$ 19,436,855	$ -
SCHEDULE "B"
PERSONAL PROPERTY
1. CASH ON HAND		$ 580,900	$ 480,044	$ 421,944
2. CHECKING, SAVINGS, ETC.		$ 16,047,077	$ 63,925,497	$ 63,842,866
3. SECURITY DEPOSITS		$ 806,583	$ 893,572	$ 893,582
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	$ 970,520	$ 882,131
17. ALIMONY
18. OTHER LIQUIDATED DEBTS
19. EQUITABLE INTERESTS
20. CONTINGENT INTERESTS
21. OTHER CLAIMS		$ 5,374,800	$ 11,922,685	$ 10,668,532
22. PATENTS & COPYRIGHTS ¹		$ -	$ -	$ -
23. LICENSES & FRANCHISES ¹		$ -	$ -	$ -
24. CUSTOMER LISTS ¹		$ -	$ -	$ -
25. AUTOS, TRUCKS & OTHER VEHICLES		$ 23,943	$ 21,723	$ 20,983
26. BOATS & MOTORS
27. AIRCRAFT
28. OFFICE EQUIPMENT		$ 15,234,482	$ 15,639,420	$ 14,908,286
29. MACHINERY, FIXTURES & EQUIPMENT		$ 65,973,947	$ 32,193,929	$ 31,668,020
30. INVENTORY		$ 217,542,264	$ 101,376,974	$ 100,774,166
31. ANIMALS
32. CROPS
33. FARMING EQUIPMENT
34. FARM SUPPLIES
35. OTHER (ATTACH LIST)
36. TOTAL PERSONAL PROPERTY ASSETS		$ 322,473,572	$ 227,424,364	$ 224,080,510	$ -
37. TOTAL ASSETS		$ 344,767,549	$ 246,968,840	$ 243,517,365	$ -

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

Page 11 of 15

			Monthly Operating Report
					CASH BASIS-4

CASE NAME:	Tuesday Morning Corporation, et al.

CASE NUMBER:	20-31476 (Jointly Administered)

				MONTH:	August
LIABILITIES OF THE ESTATE

PREPETITION		SCHEDULE AMOUNT
LIABILITIES		SCHEDULE AMOUNT	PAYMENTS
1. SECURED ¹		$ 39,210,220	$ 39,110,220
2. PRIORITY ²		$ -
3. UNSECURED ^{3, 4}		$ 107,241,762	$ 3,134,906
4. OTHER (ATTACH LIST)
5. TOTAL PREPETITION LIABILITIES		$ 146,451,982	$ 42,245,126


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	$ 644	Various	$ -
OTHER POSTPETITION LIABILITIES INCLUDING TRADE CREDITORS (LIST NAMES OF CREDITORS)
7.
8. Total Post-Petition Accounts Payable		Various	$ 14,824,921	Various	$ -
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19. (IF ADDITIONAL ATTACH LIST)
20. TOTAL OF LINES 7 - 19			$ 14,824,921		$ -
21. TOTAL POSTPETITION LIABILITIES			$ 14,825,565		$ -

¹ Debtors have repaid the Pre-Petition ABL to the required minimum balance of $100,000. Furthermore, as of August 31, 2020 the Debtors have no outstanding borrowings against either their Post-Petition ABL DIP or their DIP Term Loan.

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 Debtors' negotiations with its Landlords are on-going and, consequently, certain waivers of pre-petition rent obligations are expected but not yet fully quantified. Debtors will include these reductions as "payments" against corresponding unsecured rents once these amounts are agreed and quantified.

Page 12 of 15

			Monthly Operating Report
			CASH BASIS-4A

CASE NAME:	Tuesday Morning Corporation, et al.

CASE NUMBER:	20-31476 (Jointly Administered)

				MONTH:	August
ACCOUNTS RECEIVABLE AGING
		SCHEDULE AMOUNT	MONTH	MONTH	MONTH
		SCHEDULE AMOUNT
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+	Total
TAXES PAYABLE		DAYS	DAYS	DAYS
1. FEDERAL					$ -
2. STATE					$ -
3. LOCAL					$ -
4. OTHER (ATTACH LIST)					$ -
5. TOTAL TAXES PAYABLE		$ 644	$ -	$ -	$ 644

6. ACCOUNTS PAYABLE		$ 14,824,921	$ -	$ -	$ 14,824,921

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		$ 5,277	$ 644	$ 5,277	$ 644

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. A/R listed relates primarily to reimbursements due from landlords for tenant improvement allowances authorized under certain real property leases

Page 13 of 15

			Monthly Operating Report
			CASH BASIS-5

CASE NAME:	Tuesday Morning Corporation, et al.

CASE NUMBER:	20-31476 (Jointly Administered)
				MONTH:	August

PAYMENTS TO INSIDERS AND PROFESSIONALS

INSIDERS
NAME	TYPE OF PAYMENT	AMOUNT PAID	TTL PD TO DATE
1.
2.
SEE CERTIFICATION 1 BELOW
4.
5.
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			$ 464,199	$ 1,081,730	$ 553,270
2. Squire Patton Boggs			-	-	-
3. AlixPartners			5,000	907,705	2,287,295
4. Stifel / Miller Buckfire			-	520,000	755,000
5. Vinson & Elkins			-	624,515	480,569
6. Berkley Research Group			164,068	356,890	135,933
7. Montgomery McCracken Walker & Rhoads			493,266	493,266	236,734
8. BDO			406,698	406,698	332,802
9. Munsch Hardt			31,710	92,601	46,399
10. Great American Group	Dkt 197 - 6/9/2020		717,569	1,843,613	-
11. A&G Realty Partners	Dkt 139 - 6/2/2020		482,778	1,728,308	-
12. Epiq Systems	Dkt 100 - 5/29/2020		289,896	364,855	35,145
13. Merrill Communications			1,006	7,307	-
14. Willkie Farr & Gallagher			35,443	292,399	-
TOTAL PAYMENTS TO PROFESSIONALS		$ -	$ 3,091,633	$ 8,719,886	$ 4,863,146


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
1.
2.
SEE CERTIFICATION 2 BELOW
4.
5.
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

Page 14 of 15

Monthly Operating Report

CASH BASIS-6

2020

CASE NAME:

Tuesday Morning Corporation, et al.

CASE NUMBER:

20-31476 (Jointly Administered)

MONTH:

August

QUESTIONNAIRE

YES

1. HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE
THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?

Y
See Note 1

2. HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT
OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?

3. ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES OR
LOANS) DUE FROM RELATED PARTIES?

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?

7. ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES
PAST DUE?

8. ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?

9. ARE ANY OTHER POSTPETITION TAXES PAST DUE?

10. ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS
DELINQUENT?

11. HAVE ANY PREPETITION TAXES BEEN PAID DURING THE
REPORTING PERIOD?

Y
See Note 4

12. ARE ANY WAGE PAYMENTS PAST DUE?

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: During August, the Debtors entered into a sale agreement for certain fixtures from their Phoenix distribution facility

including racking and packing lines. Please refer to the Final Order related to this transaction at Docket 740 for more details.

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.

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.

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

1. ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER
NECESSARY INSURANCE COVERAGES IN EFFECT?

2. ARE ALL PREMIUM PAYMENTS PAID CURRENT?

3. PLEASE ITEMIZE POLICIES BELOW

See Note 4

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 4: 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 4 ABOVE

Page 15 of 15

TUESDAY MORNING CORP/DE - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - September 21, 2020

Attached files

TUESDAY MORNING CORP/DE Reports