The Dallas-based retail company Tuesday Morning has announced plans to delist from the NASDAQ stock exchange and to deregister, according to a press release.
Tuesday Morning’s Board of Directors decided to delist the company from the NASDAQ after “careful consideration of its current financial situation.” The company expects the delisting to become effective on or about January 12, 2023.
Although it will no longer be listed on the NASDAQ exchange, the company anticipates that its stock will appear on the Pink Sheets platform or other OTC markets.
Some of the reasons the company cited for its financial predicament included lower sales than expected, increased insurance costs, and the costs related to the separation of senior company executives in November.
“[T]he Company is facing near-term capital constraints and is actively seeking to raise additional capital,” the press release said. “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 Company’s common stock is in the best interests of the Company and its stockholders.”
Tuesday Morning is a discount store that primarily sells household merchandise such as furniture and home décor.
The company filed for Chapter 11 Bankruptcy in May 2020 following store closures during the height of the COVID-19 pandemic.
After new executive leadership took control of the company in December 2020, its stock tanked, and the company faced a slew of financial difficulties.
In addition, Tuesday Morning received a letter from NASDAQ indicating that it was no longer compliant with NASDAQ listing rules because its audit committee was reduced to two members after Andrew Berger resigned from the committee to step into his new role as CEO.
“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,” the press release reads. Once a company has deregistered, it can no longer publicly trade company stock.
The press release said the company expects to be completely deregistered by September 2023.
