TUEM Tuesday Morning Dashboard

Risks

• Our common stock has been delisted from trading on Nasdaq, and is traded only in the over-the-counter market, which could negatively affect our stock price and liquidity. Additionally, trading in our securities during the pendency of the Chapter 11 Cases is highly speculative and poses substantial risks. Trading prices for the Company’s common stock may bear little or no relationship to the actual recovery, if any, by holders of the Company’s common stock in the Chapter 11 Cases.
• The pursuit of the Chapter 11 Cases has consumed and will continue to consume a substantial portion of the time and attention of our management, which may have an adverse effect on our business and results of operations, and we may face increased levels of employee attrition.
• If we are not able to confirm a Chapter 11 plan of reorganization or liquidation or are not able to consummate a sale of the Company or certain of its material assets pursuant to Section 363 of the Bankruptcy Code, we could be required to liquidate under Chapter 7 of the Bankruptcy Code.
• If we pursue a Chapter 11 plan of reorganization, our post-bankruptcy capital structure is yet to be determined, and any changes to our capital structure may have a material adverse effect on existing debt and security holders.
• We may be unable to comply with restrictions imposed by our DIP ABL Facility and DIP Term Facility.
• We have substantial liquidity needs and may not be able to obtain sufficient liquidity during the pendency of the Chapter 11 proceedings or to confirm a plan of reorganization or liquidation.
• Our financial results may be volatile and may not reflect historical trends.
• Operating in bankruptcy for a long period of time may harm our business.
• Outbreaks of communicable disease, or other public health emergencies, such as the current COVID-19 pandemic, could substantially harm our business.
• Changes in economic and political conditions may adversely affect consumer spending, which could significantly harm our business, results of operations, cash flows and financial condition.
• Failure to identify and respond to changes in consumer trends and preferences could significantly harm our business.
• We must continuously attract buying opportunities for off‑price merchandise and anticipate consumer demand as off‑price merchandise becomes available, and our failure to do so could adversely affect our performance.
• Our results of operations will be negatively affected if we are not successful in managing our inventory profitably.
• Our results of operations will be negatively affected if we are unsuccessful in effectively managing our supply chain operations.
• The loss of, disruption in operations of, or increased costs in the operation of our distribution center facilities would have a material adverse effect on our business and operations.
• Our business is intensely competitive, and a number of different competitive factors could have a material adverse effect on our business, results of operations, cash flows and financial condition.
• If we are unable to maintain and protect our information technology systems and technologies, we could suffer disruptions in our business, damage to our reputation, increased costs and liability, and obstacles to our growth.
• An increase in the cost or a disruption in the flow of our imported products may significantly decrease our sales and profits.
• Changes to federal tax policy may adversely impact our operations and financial performance.
• If we do not attract, train and retain quality employees in appropriate numbers, including key employees and management, our performance could be adversely affected.
• Our results of operations are subject to seasonal and quarterly fluctuations, which could have a material adverse effect on our operating results or the market price of our common stock.
• If we fail to protect the security of information about our business and our customers, suppliers, business partners and employees, we could damage our reputation and our business, incur substantial additional costs and become subject to litigation and government investigations and enforcement actions.
• We are subject to various government regulations, changes in the existing laws and regulations and new laws and regulations which may adversely affect our operations and financial performance.
• We face risks to our corporate reputation from our customers, employees and other third parties.
• We face risks with respect to product liability claims and product recalls, which could adversely affect our reputation, our business, and our consolidated results of operations.
• Our stores may be adversely affected by local conditions, natural disasters, and other events.
• Our results of operations may be negatively affected by inventory shrinkage.
• Our results of operations may be negatively impacted by exposure to unexpected costs related to our insurance programs.