DALLAS – Low sales, high insurance and senior executive separation have led off-price home accents and décor retailer Tuesday Morning to voluntarily delist from the Nasdaq Common Stock Market LLC as of Jan. 2.
The delisting should become effective on or about Jan. 12, according to the company.
The delisting is the first step in a longer-term plan for the company to deregister as a public reporting company and terminate its obligations to make filings with the Securities and Exchange Commission. Assuming certain conditions to deregistration are satisfied, including the company having fewer than 300 record holders of its stock as of the beginning of its next fiscal year on July 3, 2023, the Tuesday Morning officials say they expect the deregistration would be complete in September of this year.
The board of directors made the decision to delist and deregister Tuesday Morning following careful consideration of its current financial situation.
“Due to a number of factors, including lower than forecast sales, increased insurance costs and costs relating to the separation with senior company executives in November 2022, the company is facing near-term capital constraints and is actively seeking to raise additional capital,” Tuesday Morning said in a release. “With the company’s liquidity position and the potential benefits of listing in mind, the board of directors has determined that the voluntary delisting of the common stock is in the best interests of the company.”
Company officials also said they believe a delisting and deregistration provide several benefits including: flexibility in raising capital to solidify its liquidity position; lower operating costs and management time commitment for compliance and reporting activities; the potential for lower regulatory and operating expenses; and simplified corporate governance structure.
Tuesday Morning opened its first store in 1974 and currently operates 487 stores in 40 states.