Off-price home goods retailer Tuesday Morning announced significant changes to its executive leadership team this week.
According to an announcement on the company’s website, Tuesday Morning’s top three executives “decided to retire.” Andrew T. Berger takes on the role of CEO while also serving on the retailer’s board, replacing Fred Hand. Bill Baumann, the retailer’s current chief information and marketing officer moves into the chief operating officer role, replacing Mark Katz. Katz also served as interim chief financial officer, which Berger will take on in the interim along with serving on the company’s board. Baumann will assume the responsibilities of Paul Metcalf, principal and chief merchant, in the interim.
The changes come less than two months after Tuesday Morning entered an agreement to secure $32 million in convertible debt financing from a special purpose vehicle formed by Retail Ecommerce Ventures. The agreement allowed Retail Ecommerce Ventures (REV)—which owns brands such as Pier 1, Linens ’n Things, Stein Mart, Modell’s Sporting Goods, and Ayon Capital, LLC—to take control of the Tuesday Morning brand. REV co-founders Tai Lopez and Alex Mehr assumed the lead of the retailer’s board, reshaping its executive leadership.
REV, which is known for taking on troubled physical retail brands such as Radioshack, converting them to leaner, e-commerce operations, picked up Tuesday Morning at a time when it was rumored to be near bankruptcy.
In late September, Tuesday Morning an 8 percent decline in comp store sales for the fourth quarter of fiscal 2022. Net sales also dropped by just over 8 percent, from $177 million in the fourth quarter of fiscal 2021 to $162 million this year. At the time, Katz blamed supply chain and transportation costs for the dip.
Berger brings more than 25 years of investment analysis and management that includes guiding turnarounds for companies across a number of sectors. He has been a director of Tuesday Morning since September and serves as director and executive chair of Autoscope Technologies Corporation, which he served as CEO of until taking on the Tuesday Morning role.
“I look forward to leading Tuesday Morning as we capitalize on our strategic growth initiatives, unlock tremendous long-term opportunity in the home goods and décor category, and pursue a path towards long-term profitable growth,” Berger said. “I want to thank Marc and Paul for their essential service to Tuesday Morning, and I am delighted to welcome Bill as the next chief operating officer. His deep knowledge of the company and its business will be invaluable as we focus on our strategic growth initiatives and continue to drive deeper connections and engagement with our customers.”
Hand, Baumann and Metcalf will serve as consultants during the transition, through June 2023.