- Tuesday Morning CEO Steven Becker is set to leave his post and board directorship this year, the company said just two weeks after it exited Chapter 11 bankruptcy.
- Becker recently signed an employment agreement that expires in June and will not be renewed, according to a securities filing. However, Becker will stay on if a new chief hasn't been named by then. Becker also agreed to work as a consultant through Sept. 30 to help with the transition.
- Tuesday Morning also shuffled its board in December, on its way out of bankruptcy. Joining as directors are former Tractor Supply CFO Anthony Crudele; Douglas Dossey, co-founder of private equity firm Tensile Capital Management; former Payless CEO W. Paul Jones; and John Lewis, founder of hedge fund Osmium Partners.
Tuesday Morning is working toward a full reset after restructuring in bankruptcy. It has shuttered roughly 200 stores and raised new capital since entering bankruptcy, and is now working towards a leadership change at the top.
Board chair Sherry Smith said in a press release that Becker, appointed CEO of Tuesday Morning in 2015, has "successfully navigated the Company through a very challenging year." Indeed, lacking an online presence, last spring's closures wiped out nearly all of the off-price retailer's revenue. That followed years of middling sales growth and negative profits.
"As we enter our next phase of growth, Steven and the Board believe that it is the right time to transition leadership," said Smith, who was recently appointed as chair after serving on the board since 2014.
Being essentially store-based, the retailer, which focuses mostly on home goods, could continue facing significant challenges until the wide distribution of a COVID-19 vaccine. Recent disclosures show the continued toll of the pandemic on Tuesday Morning's business. For the period ending Sept. 30, its sales were still down nearly 28% compared to 2019 levels, while operating losses nearly doubled. Net cash flow remained negative through October and November, according to operating reports filed in bankruptcy court.
Yet off-price remains popular among consumers. Being largely brick-and-mortar based, the sector was uniquely vulnerable to a pandemic, but analysts still by and large like off-price's prospects.
As for Tuesday Morning, its focus on home goods, decor and toys may provide a cushion against apparel's travails in the COVID-19 era. But it still lacks the scale and buying power of off-price giants like TJX Cos. and Ross Stores.
GlobalData analysts have described Tuesday Morning stores as "a jumbled flea market" of available goods. Whoever takes over as CEO will likely have to find ways to add more treasures to Tuesday Morning's treasure hunt to lure in customers.