Tuesday Morning (TUEMQ) 10-Q 29 Apr 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2021	Apr. 26, 2021
Cover [Abstract]
Entity Registrant Name	TUESDAY MORNING CORP/DE
Entity Central Index Key	0000878726
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Entity Shell Company	false
Entity File Number	0-19658
Entity Tax Identification Number	75-2398532
Entity Address, Address Line One	6250 LBJ Freeway
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75240
City Area Code	972
Local Phone Number	387-3562
Entity Common Stock, Shares Outstanding		86,194,528
Document Quarterly Report	true
Document Transition Report	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Current assets:
Cash and cash equivalents	$ 6,314	$ 46,676
Restricted cash	55,569
Inventories	137,360	114,905
Prepaid expenses	8,081	6,353
Other current assets	3,970	7,210
Total Current Assets	211,294	175,144
Property and equipment, net	39,082	68,635
Operating lease right-of-use assets	203,565	258,433
Deferred financing costs	2,705
Other assets	3,329	3,178
Total Assets	459,975	505,390
Current liabilities:
Debtor-in-possession financing		100
Accounts payable	46,082	5,514
Accrued liabilities	72,866	33,942
Operating lease liabilities	53,480
Total Current Liabilities	172,428	39,556
Long-term debt (see Note 8 for amounts due to related parties)	25,392
Lease liability — non-current	169,190
Asset retirement obligation — non-current	971	1,213
Other liabilities — non-current	3,061	1,347
Total Liabilities not subject to compromise	371,042	42,116
Liabilities subject to compromise		456,339
Total Liabilities	371,042	498,455
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.01 per share, authorized 10,000,000 shares; none issued or outstanding
Common stock, par value $0.01 per share, authorized 200,000,000 shares at March 31, 2021 and authorized 100,000,000 shares at June 30, 2020; 87,978,189 shares issued and 86,194,528 shares outstanding at March 31, 2021 and 49,124,313 shares issued and 47,340,652 shares outstanding at June 30, 2020	832	455
Additional paid-in capital	303,798	244,021
Retained deficit	(208,885)	(230,729)
Less: 1,783,661 common shares in treasury, at cost, at March 31, 2021 and 1,783,661 common shares in treasury, at cost, at June 30, 2020	(6,812)	(6,812)
Total Stockholders’ Equity	88,933	6,935
Total Liabilities and Stockholders’ Equity	$ 459,975	$ 505,390

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2021	Jun. 30, 2020
Stockholders’ equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	100,000,000
Common stock, shares issued	87,978,189	49,124,313
Common stock, shares outstanding	86,194,528	47,340,652
Treasury stock, shares	1,783,661	1,783,661

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Net sales	$ 153,345,000	$ 165,698,000	$ 513,516,000	$ 714,551,000
Cost of sales	105,145,000	113,531,000	354,192,000	475,476,000
Gross profit	48,200,000	52,167,000	159,324,000	239,075,000
Selling, general and administrative expenses	59,183,000	82,814,000	184,600,000	267,273,000
Restructuring and abandonment expenses	1,047,000		7,554,000
Operating loss	(12,030,000)	(30,647,000)	(32,830,000)	(28,198,000)
Other income/(expense):
Interest expense	(1,409,000)	(499,000)	(6,676,000)	(1,890,000)
Reorganization items, net	(23,597,000)	0	62,169,000	0
Other income/(expense), net	89,000	223,000	(104,000)	456,000
Other income/(expense) total	(24,917,000)	(276,000)	55,389,000	(1,434,000)
Income/(loss) before income taxes	(36,947,000)	(30,923,000)	22,559,000	(29,632,000)
Income tax expense	172,000	117,000	715,000	99,000
Net income/(loss)	$ (37,119,000)	$ (31,040,000)	$ 21,844,000	$ (29,731,000)
Net income/(loss) per common share:
Basic	$ (0.55)	$ (0.69)	$ 0.41	$ (0.66)
Diluted	$ (0.55)	$ (0.69)	$ 0.41	$ (0.66)
Weighted average number of common shares:
Basic	67,584	45,314	52,741	45,162
Diluted	67,584	45,314	52,741	45,162
Dividends per common share	$ 0	$ 0	$ 0	$ 0

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Rights Offering	Cumulative Effect Period of Adoption Adjustment	Common Stock	Common StockRights Offering	Additional Paid-In Capital	Additional Paid-In CapitalRights Offering	Retained Deficit	Retained DeficitCumulative Effect Period of Adoption Adjustment	Treasury Stock
Balance at Jun. 30, 2019	$ 171,309		$ (601)	$ 465		$ 241,456		$ (63,800)	$ (601)	$ (6,812)
Balance (in shares) at Jun. 30, 2019				46,683,000
Net income (loss)	(29,731)							(29,731)
Share-based compensation	2,022					2,022
Shares issued or canceled in connection with employee stock incentive plans and related tax effect	(1)			$ (4)		3
Shares issued or canceled in connection with employee stock incentive plans and related tax effect (in shares)				1,328,000
Balance at Mar. 31, 2020	142,998			$ 461		243,481		(94,132)		(6,812)
Balance (in shares) at Mar. 31, 2020				48,011,000
Balance at Dec. 31, 2019	173,457			$ 462		242,899		(63,092)		(6,812)
Balance (in shares) at Dec. 31, 2019				48,036,000
Net income (loss)	(31,040)							(31,040)
Share-based compensation	581					581
Shares issued or canceled in connection with employee stock incentive plans and related tax effect				$ (1)		1
Shares issued or canceled in connection with employee stock incentive plans and related tax effect (in shares)				(25,000)
Balance at Mar. 31, 2020	142,998			$ 461		243,481		(94,132)		(6,812)
Balance (in shares) at Mar. 31, 2020				48,011,000
Balance at Jun. 30, 2020	$ 6,935			$ 455		244,021		(230,729)		(6,812)
Balance (in shares) at Jun. 30, 2020	47,340,652			47,341,000
Net income (loss)	$ 21,844							21,844
Share-based compensation	1,152					1,152
Shares issued in connection with rights offering		$ 58,989			$ 382		$ 58,607
Shares issued in connection with rights offering (in shares)					38,182,000
Shares issued or canceled in connection with employee stock incentive plans and related tax effect	13			$ (5)		18
Shares issued or canceled in connection with employee stock incentive plans and related tax effect (in shares)				672,000
Balance at Mar. 31, 2021	$ 88,933			$ 832		303,798		(208,885)		(6,812)
Balance (in shares) at Mar. 31, 2021	86,194,528			86,195,000
Balance at Dec. 31, 2020	$ 66,641			$ 450		244,769		(171,766)		(6,812)
Balance (in shares) at Dec. 31, 2020				46,846,000
Net income (loss)	(37,119)							(37,119)
Share-based compensation	409					409
Shares issued in connection with rights offering		$ 58,989			$ 382		$ 58,607
Shares issued in connection with rights offering (in shares)					38,182,000
Shares issued or canceled in connection with employee stock incentive plans and related tax effect	13					13
Shares issued or canceled in connection with employee stock incentive plans and related tax effect (in shares)				1,167,000
Balance at Mar. 31, 2021	$ 88,933			$ 832		$ 303,798		$ (208,885)		$ (6,812)
Balance (in shares) at Mar. 31, 2021	86,194,528			86,195,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net income/(loss)	$ 21,844	$ (29,731)
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Depreciation and amortization	11,933	20,935
Loss on abandonment of assets	5,638
Amortization of financing costs and interest expense	5,949	163
(Gain)/loss on disposal of assets	(1,403)	92
Gain on sale-leaseback	(49,639)
Share-based compensation	1,347	2,082
Rights Offering and Backstop Agreement	18,990
Gain on lease terminations	(93,281)
Construction allowances from landlords	401	1,313
Change in operating assets and liabilities:
Inventories	(22,650)	22,341
Prepaid and other current assets	(2,952)	1,631
Accounts payable	(42,899)	(7,339)
Accrued liabilities	37,295	(9,842)
Operating lease assets and liabilities	(6,538)	(1,085)
Income taxes payable		153
Other liabilities — non-current	1,481	(106)
Net cash provided by/(used in) operating activities	(114,484)	607
Cash flows from investing activities:
Capital expenditures	(2,342)	(15,513)
Proceeds from sale-leaseback	68,566
Purchases of intellectual property		(27)
Proceeds from sales of assets	1,896	114
Net cash provided by/(used in) investing activities	68,120	(15,426)
Cash flows from financing activities:
Proceeds from borrowings under revolving credit facility	613,370	265,353
Repayments of borrowings under revolving credit facility	(613,470)	(209,403)
Proceeds from term loan	25,000
Proceeds from issuance of common stock and exercise of employee stock options	40,012
Change in cash overdraft		(4,996)
Payments on finance leases	(167)	(196)
Payment of financing fees	(3,174)
Net cash provided by financing activities	61,571	50,758
Net increase in cash, cash equivalents and restricted cash	15,207	35,939
Cash, cash equivalents and restricted cash at beginning of period	46,676	11,395
Cash, cash equivalents and restricted cash at end of period	$ 61,883	$ 47,334

Basis of Presentation

Basis of Presentation	9 Months Ended
	Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation — The unaudited interim consolidated financial statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. These financial statements include all adjustments, consisting only of those of a normal recurring nature, which, in the opinion of management, are necessary to present fairly the results of the interim periods presented and should be read in conjunction with the audited consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020. The consolidated balance sheet at June 30, 2020 has been derived from the audited consolidated financial statements at that date. These interim financial statements do not include all of the information and notes required by GAAP for complete financial statements. For further information, refer to the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020. The accompanying unaudited interim consolidated financial statements include the accounts of Tuesday Morning Corporation, a Delaware corporation, and its wholly‑owned subsidiaries. All entities of the Company were included in the filing of and subsequent emergence from a voluntary petition (the “Chapter 11 Cases”) under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division (the “Bankruptcy Court”) and all entities are included in our consolidated financial statements. Separate condensed combined financial statements of the entities were not required during the reorganization proceedings, nor required post emergence from bankruptcy. All intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications were made to prior period amounts to conform to the current period presentation. None of the reclassifications affected our net income in any period. We do not present a consolidated statement of comprehensive income as there are no other comprehensive income items in either the current or prior fiscal periods. The results of operations for the three and nine months ended March 31, 2021 are not necessarily indicative of the results to be expected for the full fiscal year ending June 30, 2021, which we refer to as fiscal 2021, due in part to the seasonality of our business, the financial impact of the COVID-19 pandemic, and the Chapter 11 cases, discussed further below. The preparation of unaudited interim consolidated financial statements, in conformity with GAAP, requires us to make assumptions and use estimates that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to inventory valuation under the retail method and estimation of reserves and valuation allowances specifically related to insurance, income taxes and litigation. Actual results could differ materially from these estimates. The COVID-19 pandemic has increased the difficulty in making various estimates in our financial statements. Our fiscal year ends on June 30 and we operate our business as a single operating segment. COVID-19 Pandemic The COVID-19 pandemic has had, and could continue to have, an adverse effect on our business operations, store traffic, employee availability, financial conditions, results of operations, liquidity and cash flow. On March 25, 2020, we temporarily closed all of our stores nationwide, severely reducing revenues and resulting in significant operating losses and the elimination of substantially all operating cash flow. Stores gradually reopened as allowed by state and local jurisdictions, and all but two of our stores had reopened as of the end of June 2020. In the first quarter of fiscal 2021, we completed the permanent closure of 197 stores. The scope and duration of this pandemic and the related disruption to our business and financial impacts cannot be reasonably estimated at this time. While we have taken actions to minimize costs, some of which are permanent including the closure of 197 stores and the closure of our Phoenix distribution center, Voluntary Petitions for Reorganization under Chapter 11 On May 27, 2020 (the “Petition Date”), we filed the Chapter 11 Cases. The Chapter 11 Cases were jointly administered for procedural purposes . Significant Bankruptcy Court Actions During the pendency of the Chapter 11 Cases, we continued to operate our businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. On May 28, 2020, at the first-day hearings of the Chapter 11 Cases, the Bankruptcy Court granted relief in conjunction with various motions intended to ensure our ability to continue our ordinary operations after the Petition Date. The Bankruptcy Court’s orders granting such relief, entered on May 28, 2020 and May 29, 2020, authorized us to, among other things, pay certain pre-petition employee and retiree expenses and benefits, use our existing cash management system, maintain and administer customer programs, pay certain critical and foreign vendors and pay certain pre-petition taxes and related fees. In addition, the Bankruptcy Court issued orders approving, among other things, (1) our entry into the Senior Secured Super Priority Debtor-in-Possession Credit Agreement (the “DIP ABL Credit Agreement”) among the Company, JPMorgan Chase Bank, N.A., as administrative agent, for itself and the other lenders, which provided for a super priority secured debtor-in-possession revolving credit facility in an aggregate amount of up to $100.0 million (the “DIP ABL Facility”), and (2) our use of cash collateral in accordance with the terms of the DIP ABL Credit Agreement. See Note 8 to the Consolidated Financial Statements for additional information regarding the DIP ABL Facility. These orders were significant because they allowed us to operate our businesses in the normal course. The Bankruptcy Court has issued orders designed to assist us in preserving certain tax attributes during the pendency of the Chapter 11 Cases by establishing, among other things, notification and hearing procedures (the “Procedures”) relating to proposed transfers of its common stock and the taking of worthless stock deductions. The Procedures, among other things, restricted transfers involving, and required notice of the holdings of and proposed transactions by any person or “entity” (as defined the applicable U.S. Treasury Regulations) owning or seeking to acquire ownership of 4.5% or more of the Company’s common stock. The Bankruptcy Court orders provided that any actions in violation of the Procedures (including the notice requirements) would be null and void ab initio, and (a) the person or entity making such a transfer would be required to take remedial actions specified by us to appropriately reflect that such transfer of our common stock is null and void ab initio and (b) the person or entity making such a declaration of worthlessness with respect to our common stock would be required to file an amended tax return revoking such declaration and any related deduction to reflect that such declaration is void ab initio. On June 9, 2020, the Bankruptcy Court issued an order approving procedures for the closure of up to 230 of our store locations. In early June 2020, we On July 10, 2020, in accordance with a final order issued by the Bankruptcy Court on July 10, 2020, we entered into a Senior Secured Super Priority Debtor-In-Possession Delayed Draw Term Loan Agreement (the “DIP DDTL Agreement”) with the Franchise Group, Inc. (the “Lender”). Pursuant to the DIP DDTL Agreement, the Lender agreed to lend us up to an aggregate principal amount of $25.0 million in the form of delayed draw term loans (the “DIP Term Facility”). See Note 8 for additional information. On September 23, 2020, the Company and its subsidiaries filed with the Bankruptcy Court a proposed Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code (the “Original Plan”) and a proposed Disclosure Statement in Support of the Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code (the “Original Disclosure Statement”) describing the Plan and the solicitation of votes to approve the same from certain of the Debtors’ creditors with respect to the Chapter 11 Cases. On September 23, 2020, contemporaneously with the filing of the Original Plan and Original Disclosure Statement, the Company and its subsidiaries filed an expedited motion for entry of an order (1) approving sale and bidding procedures in connection with a potential sale of assets of the Company and its subsidiaries, (2) authorizing the sale of assets free and clear of all liens, claims, encumbrances and other interests, and (3) granting related relief (the “Bidding Procedures Motion”). The Company believed that the concurrent prosecution of a plan of reorganization and a court-approved process for bidding and potential sale of substantially all of their assets would allow the Company and its subsidiaries to assess the relative benefits of a plan of reorganization and a sale. The Bidding Procedures Motion provided that the Bankruptcy Court would consider approval of a sale of assets on October 29, 2020 if the Company determined to proceed with a sale of assets. On October 26, 2020, the Company and its subsidiaries filed a motion with the Bankruptcy Court indicating the Company would not be seeking approval of a sale of assets on October 29, 2020. On October 26, 2020, the Company also filed a motion indicating the Company was working to make revisions to the Original Plan and Original Disclosure Statement and seeking to establish a hearing on November 9, 2020 for consideration of a revised plan of reorganization and disclosure statement. The Company reserved the right to continue to pursue a sale of assets if the Company determined that a sale of assets is in the best interests of the bankruptcy estate. On November 4, 2020, the Company and its subsidiaries filed with the Bankruptcy Court a proposed Amended Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code and a proposed Amended Disclosure Statement. On November 16, 2020, the Company and its subsidiaries filed with the Bankruptcy Court a proposed Revised Second Amended Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code (the “Amended Plan”) and a proposed Amended Disclosure Statement (the “Amended Disclosure Statement”) in support of the Amended Plan describing the Amended Plan and the solicitation of votes to approve the same from certain of the Debtors’ creditors with respect to the Chapter 11 Cases. The Amended Plan and the Amended Disclosure Statement contemplated the proposed financing transactions described in Notes 8 and 13 below, including the transactions contemplated by the Purchase and Sale Agreement (as defined in Note 13), the New ABL Facility (as defined in Note 8), the Term Loan Credit Agreement (as defined in Note 8) and the Rights Offering (as defined below). On November 18, 2020, the Bankruptcy Court issued an order approving the Amended Disclosure Statement. On December 23, 2020, the Bankruptcy Court entered an order (the “Confirmation Order”) confirming the Amended Plan, with certain modifications described in the Confirmation Order (as modified and confirmed, the “Plan of Reorganization”). On December 31, 2020, all of the conditions precedent to the Plan of Reorganization were satisfied and the Company completed the transactions contemplated by the Purchase and Sale Agreement, the New ABL Facility and the Term Loan Credit Agreement. In accordance with the Plan of Reorganization, effective December 31, 2020, the Company’s board of directors was comprised of nine members, including five continuing directors of the Company, three new directors appointed by the Backstop Party (as defined below) and one director appointed by the equity committee in the Chapter 11 Cases. Pursuant to the Plan of Reorganization, each outstanding share of the Company’s common stock as of the close of business on January 4, 2021 was exchanged (the “Exchange”) for (1) one new share of the Company’s stock and (2) a share purchase right entitling the holder to purchase its pro rata portion of shares available to eligible holders in the Rights Offering. In accordance with the Plan of Reorganization, the Company commenced a $40.0 million rights offering (the “Rights Offering”), under which eligible holders of the Company’s common stock could purchase up to $24.0 million of shares of the Company’s common stock at a purchase price of $1.10 per share, and Osmium Partners, LLC or its affiliates, including a special purpose entity affiliate of Osmium Partners, LLC jointly owned with Tensile Capital Management (the “Backstop Party”), could purchase up to $16 million of shares of the Company’s common stock at a purchase price of $1.10 per share. Pursuant to a backstop commitment agreement, the Backstop Party agreed to purchase all unsubscribed shares in the Rights Offering. The subscription period for the Rights Offering expired on February 1, 2021, with eligible holders subscribing to purchase approximately $19.8 million of shares, with the Backstop Party purchasing the remaining $20.2 million of shares. On February 9, 2021, the Company closed on the Rights Offering and in the three months ended March 31, 2021, recorded proceeds of $40.0 million and recognized a non-cash charge of approximately $14.5 million as a result of the change in fair value of the Company’s common stock issued to the Backstop Party as measured from the consummation of the Exchange through the close date (“Backstop Premium”). The change in fair value was determined by reference to the Company’s stock price, traded over-the-counter, discounted for the restrictions limited the holders ability to resell securities until they are registered pursuant to the Registration Rights Agreement entered into on February 9, 2021 between the Company and Backstop Party. In addition, on the close date, the Company issued warrants with rights to purchase 10 million shares of common stock with an exercise price of $1.65 and a five year term to the Backstop Party (“Warrants”). The Company classified the Warrants as equity instruments and recognized expense of $2.5 million measured at fair value using the Black-Scholes model for the three months ended March 31, 2021. Finally, on the close date the Backstop Party received a backstop fee in the amount of $2.0 million (payable in shares of common stock valued at $1.10 per share) that was classified as an equity instrument for the three month period ended March 31, 2021. The non-cash charges of approximately $14.5 million for the Backstop Premium, the $2.5 million of expense related to the Warrants, and backstop fee of approximately $2.0 million are recorded in Reorganization items, net in our Consolidated Statements of Operations for the three and nine months ended March 31, 2021. In accordance with the terms of the Plan of Reorganization, all proceeds from the Rights Offering will be used to make payments of the claims of general unsecured creditors in the Chapter 11 Cases. De-listing On May 27, 2020, the Company received a letter from the Listing Qualifications Department staff of The Nasdaq Stock Market (“Nasdaq”) notifying it that, as a result of the Chapter 11 Cases and in accordance with Nasdaq Listing Rules 5101, 5110(b) and IM-5101-1, Nasdaq determined that the Company’s common stock would be delisted from Nasdaq. On June 8, 2020, trading of the Company’s common stock on Nasdaq was suspended. On July 1, 2020, Nasdaq filed a Form 25 with the SEC to delist the Company’s common stock. During the pendency of the Chapter 11 Cases, the Company’s common stock traded over the counter in the OTC Pink Market under the symbol “TUESQ”. Following the Company’s legal emergence from bankruptcy, we applied for listing on the over the counter market, and the Company’s common stock now trades over the counter on the OTCQX market under the symbol “TUEM.” Going Concern Our operating loss was $32.8 and $28.2 million for the nine months ended March 31, 2021 and March 31, 2020, respectively. Our operating loss for the fiscal year ended June 30, 2020 was $159.2 million. The COVID-19 pandemic and the resulting store closures severely reduced our revenues and operating cash flows during the third and fourth quarters of our fiscal year ended June 30, 2020 as well as the first nine months of fiscal 2021. As described further above, on May 27, 2020, we commenced the Chapter 11 Cases in the Bankruptcy Court. Our Plan of Reorganization was confirmed by the Bankruptcy Court on December 23, 2020, and all listed material conditions precedent were deemed resolved by the December 31, 2020 legal effective date of emergence as governed by the Bankruptcy Court. The Rights Offering that closed on February 9, 2021 raised approximately $40 million of cash and was considered a critical component to the execution of our confirmed Plan of Reorganization. The consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The consolidated financial statements do not include any adjustments that would result if the Company was unable to realize its assets and settle its liabilities as a going concern in the ordinary course of business. We believe our plans, implemented during the nine month period ended March 31, 2021 in connection with the Chapter 11 Cases and those continuing to be implemented, will mitigate the known conditions and events that initially raised substantial doubt about the entity’s ability to continue as a going concern. However, due to the uncertainty around the scope and duration of the ongoing COVID-19 pandemic and current challenges related to the global transportation market those plans collectively cannot be deemed probable of mitigating substantial doubt as to our ability to continue as a going concern. Bankruptcy Accounting See Note 2 entitled “ Bankruptcy Accounting Accounting Pronouncement Recently Adopted In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326)” (“ASC 326”), which makes significant changes to the accounting for credit losses on financial assets and disclosures. The standard requires immediate recognition of management’s estimates of current expected credit losses. We adopted ASC 326 in the first quarter of fiscal 2021. The adoption did not have a material impact to our consolidated financial statements.

Bankruptcy Accounting

Bankruptcy Accounting	9 Months Ended
	Mar. 31, 2021
Reorganizations [Abstract]
Bankruptcy Accounting	2. Bankruptcy Accounting Bankruptcy Accounting ASC 852 requires that the consolidated financial statements, for periods subsequent to the filing of the Chapter 11 Cases, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. During the pendency of the Chapter 11 cases until we qualified for emergence under ASC 852, the consolidated financial statements were prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities and commitments in the normal course of business and reflect the application of ASC 852. Accordingly, certain expenses, gains and losses that are realized or incurred in the bankruptcy proceedings were recorded in reorganization items on our consolidated statements of operations. In addition, pre-petition unsecured and under-secured obligations that were subject to the bankruptcy reorganization process were classified as liabilities subject to compromise. Pursuant to the Plan of Reorganization, a General Unsecured Claim Fund (“Unsecured Creditor Claim Fund”) was established for the benefit of holders of Allowed General Unsecured Claims. Upon the closing of the sale and leaseback of the Corporate Office and the Dallas Distribution Center properties (see Note 6) and the issuance of the Term Loan (as defined in Note 8), net proceeds of $67.5 million, after payment of property taxes, and $18.8 million, respectively, were deposited directly into the Unsecured Creditor Claim Fund that is being administered by an independent unsecured claims disbursing agent. The remaining proceeds from the Term Loan not deposited into the Unsecured Creditor Claim Fund were deposited into our operating account. In addition, $14.2 million of additional cash was deposited into a segregated bank account at Wells Fargo Bank and is restricted for use in paying compensation for services rendered by professionals on or after the Petition date and prior to the Effective Date (“Wells Fargo Restricted Fund”). The closing of the Rights Offering provided approximately $40.0 million of cash that was deposited to the Unsecured Creditor Claim Fund and recorded as restricted cash. As of March 31, 2021, we had $46.3 million and $9.3 million of cash held in the Unsecured Creditor Claim Fund and the Wells Fargo Restricted Fund, respectively, that are recorded as restricted cash on the balance sheet. The accompanying consolidated financial statements as of June 30, 2020 do not purport to reflect or provide for the consequences of the Chapter 11 Cases. In particular, the consolidated financial statements do not purport to show: (i) the realizable value of assets on a liquidation basis or their availability to satisfy liabilities; (ii) the full amount of pre-petition liabilities that may be allowed for claims or contingencies, or the status and priority thereof; (iii) the effect on stockholders’ investment accounts of any changes that may be made to our capitalization; or (iv) the effect on operations of any changes that may be made to our business. For specific discussion on balances of liabilities subject to compromise and reorganization items, see below. Our Plan of Reorganization was confirmed on December 23, 2020, and all listed material conditions precedent were resolved by the December 31, 2020 legal effective date of emergence as governed by the Bankruptcy Court. However, the closing of our Rights Offering was considered a critical component to the execution of our confirmed Plan of Reorganization, therefore, we continued to apply the requirements of ASC 852 until that transaction closed on February 9, 2021. We were not required to apply fresh start accounting based on the provisions of ASC 852 as there was no change in control and the entity’s reorganization value immediately before the date of confirmation was more than the total of all its post-petition liabilities and allowed claims. Liabilities Subject to Compromise As a result of the Chapter 11 Cases, the payment of pre-petition indebtedness was subject to compromise. Generally, actions to enforce or otherwise effect payment of pre-bankruptcy filing liabilities are stayed. Although payment of pre-petition claims is generally not permitted, the Bankruptcy Court granted the Company authority to pay certain pre-petition claims in designated categories and subject to certain terms and conditions. This relief generally was designed to preserve the value of our businesses and assets. Among other things, the Bankruptcy Court authorized the Company to pay certain pre-petition claims relating to employee wages and benefits, customers, vendors, and suppliers in the ordinary course of business and certain insurance, tax, and principal and interest payments. With respect to pre-petition claims, we notified all known claimants of the deadline to file a proof of claim with the Bankruptcy Court. Pre-petition liabilities that are subject to compromise were required to be reported at the amounts expected to be allowed, even if they may be settled for lesser amounts (see above for details on the Unsecured Creditor Claim Fund) Where there was uncertainty about whether a secured claim would be paid or impaired pursuant to the Chapter 11 Cases, we classified the entire amount of the claim as an outstanding liability subject to compromise as of June 30, 2020. In connection with our emergence from bankruptcy, all allowable claims have been reclassified from Liabilities subject to compromise to Accounts payable and Accrued liabilities in our Consolidated Balance Sheets as of March 31, 2021. Liabilities subject to compromise in our condensed consolidated balance sheet include the following as of March 31, 2021 and June 30, 2020 (in thousands): As of March 31, 2021 As of June 30, 2020 Accounts payable $ - $ 83,467 Accrued expenses - 6,630 Operating lease liabilities - 71,097 Lease liabilities - non-current - 294,812 Other liabilities - non-current - 333 Liabilities subject to compromise $ - $ 456,339 Restructuring, Impairment and Abandonment Charges Restructuring and abandonment charges total $1.0 million and $7.6 million for the three and nine months ended March 31, 2021, respectively, and include the following (in thousands): Three Months Ended Nine Months Ended March 31, 2021 March 31, 2021 Restructuring costs: Severance and compensation related costs $ 1,047 $ 1,916 Total restructuring costs $ 1,047 $ 1,916 Abandonment costs: Accelerated recognition of operating right-of-use assets $ - $ 5,638 Total abandonment costs $ - $ 5,638 Total restructuring and abandonment costs $ 1,047 $ 7,554 The restructuring and abandonment costs shown above primarily relate to the remaining employee retention costs of $0.3 million and $0.7 million of severance costs as of March 31, 2021. For the nine months ended March 31, 2021, the abandonment costs shown were primarily related to the permanent closure of our stores and Phoenix, Arizona distribution center. Decisions regarding store closures and the Phoenix, Arizona distribution center were made in the fourth quarter of fiscal 2020, prior to filing the Chapter 11 Cases; however, the closure of the Phoenix distribution center was not completed until the second quarter of fiscal 2021. There were no charges for restructuring, impairment or abandonment recorded in the statement of operations for the three and nine month periods ended March 31, 2020. Reorganization Items Reorganization items included in our consolidated statement of operations represent amounts directly resulting from the Chapter 11 Cases and total a net expense of $23.6 million and a total net benefit of $62.2 million for the three and nine months ended March 31, 2021, respectively, and include the following (in thousands): Three Months Ended Nine Months Ended March 31, 2021 March 31, 2021 Reorganization items, net: Professional and legal fees $ 3,733 $ 33,853 Gains on lease termination, net of estimated claims - (66,247 ) Claims related costs 874 874 Rights Offering and Backstop Agreement 18,990 18,990 Gain on sale-leaseback - (49,639 ) Total reorganization items, net $ 23,597 $ (62,169 ) During the three months ended March 31, 2021, reorganization costs primarily related to the execution of our Rights Offering along with related professional fees (see Note 1). During the first nine months of fiscal 2021, in addition to the Rights Offering and related professional fees, reorganization costs primarily related to the leases for store locations related to our permanent closure plan, as well as the lease for our Phoenix distribution center, which were rejected and the related lease liabilities were reduced to the amount of estimated claims allowable by the Bankruptcy Court, resulting in the $66.2 million gain shown above for the nine months ended March 31, 2021. In the second quarter of fiscal 2021, we executed a sale-leaseback agreement on our owned real estate as part of our Plan of Reorganization, the proceeds of which, along with other sources of financing, will be utilized to satisfy allowed claims and are thus categorized as a reorganization item. Please refer to Note 13 for additional details regarding the sale-leaseback transactions. There were no charges for reorganization items recorded in the statement of operations for the three and nine months ended March 31, 2020. Cash paid for reorganization items during the three and nine months ended March 31, 2021 was $3.7 million and $22.6 million, respectively, and related to professional and legal fees. As of March 31, 2021, $15.6 million of professional fees were unpaid and accrued in Accounts Payable and Accrued Liabilities in the accompanying Consolidated Balance Sheet.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Mar. 31, 2021
Revenue From Contract With Customer [Abstract]
Revenue Recognition	3. Revenue recognition — Our revenue is earned from sales of merchandise within our stores and is recorded at the point of sale and conveyance of merchandise to customers. Revenue is measured based on the amount of consideration that we expect to receive, reduced by point of sale discounts and estimates for sales returns, and excludes sales tax. Payment for our sales is due at the time of sale. We maintain a reserve for estimated returns, as well as a corresponding returns asset in “Other Assets” in the Consolidated Balance Sheet, and we use historical customer return behavior to estimate our reserve requirements. No impairment of the returns asset was identified or recorded as of March 31, 2021. Gift cards are sold to customers in our stores and we issue gift cards for merchandise returns in our stores. Revenue from sales of gift cards and issuances of merchandise credits is recognized when the gift card is redeemed by the customer, or if the likelihood of the gift card being redeemed by the customer is remote (gift card breakage). The gift card breakage rate is determined based upon historical redemption patterns. An estimate of the rate of gift card breakage is applied over the period of estimated performance and the breakage amounts are included in net sales in the Consolidated Statement of Operations. Breakage income recognized for the three and nine months ended March 31, 2021 was $0.1 million and $0.3 million, respectively. Breakage income recognized for the three and nine months ended March 31, 2020 was $0.1 million and $0.4 respectively. The gift card liability is included in “Accrued liabilities” in the Consolidated Balance Sheet. We will continue to evaluate whether and how store closures may affect customer behavior with respect to sales returns and gift card redemption and related breakage.

Share-Based Incentive Plans

Share-Based Incentive Plans	9 Months Ended
	Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-Based Incentive Plans	4. Share-based incentive plans — On January 4, 2021, Tuesday Morning Corporation interests, prior to reorganization, consisting of options, warrants, or other rights, contractual or otherwise, to acquire shares of the existing common stock were reinstated and entitled the holder to acquire an equal number of shares of the common stock of reorganized Tuesday Morning, subject to dilution as a result of the issuance of the Rights Offering and the issuance of equity securities on and after January 4, 2021. Stock Option Awards. We have established the Tuesday Morning Corporation 2008 Long-Term Equity Incentive Plan (the “2008 Plan”) and the Tuesday Morning Corporation 2014 Long-Term Incentive Plan, as amended (the “2014 Plan”), which allow for the granting of stock options to directors, officers and key employees of the Company, and certain other key individuals who perform services for us and our subsidiaries. Equity awards may no longer be granted under the 2008 Plan but equity awards granted under the 2008 Plan are still outstanding. Pursuant to the Plan of Reorganization, upon the Company’s emergence from bankruptcy, all outstanding equity awards remained in full force and effect under their existing terms. In addition, the Plan of Reorganization provided for an amendment to the 2014 Plan to increase the number of shares available for future awards by 2.4 million shares. Stock options were awarded under the 2008 Plan and the 2014 Plan with a strike price at the fair market value equal to the closing price of our common stock on the date of the grant. Options granted under the 2008 Plan and the 2014 Plan typically vest over periods of one to four years and expire ten years from the date of grant. Options granted under the 2008 Plan and the 2014 Plan may have certain performance requirements in addition to service terms. If the performance conditions are not satisfied, the options are forfeited. The exercise prices of stock options outstanding on March 31, 2021 range between $1.64 per share and $20.91 per share. There were 5.9 million shares available for grant under the 2014 Plan at March 31, 2021. Restricted Stock Awards —The 2008 Plan and the 2014 Plan authorize the grant of restricted stock awards to directors, officers, key employees and certain other key individuals who perform services for us and our subsidiaries. Equity awards may no longer be granted under the 2008 Plan, but restricted stock awards granted under the 2008 Plan are still outstanding. Restricted stock awards are not transferable, but bear certain rights of common stock ownership including voting and dividend rights. The 2014 Plan also authorizes the issuance of restricted stock units which, upon vesting, provide for the issuance of an equivalent number of shares of common stock or a cash payment based on the value of our common stock at vesting. Restricted units are not transferable and do not provide voting or dividend rights. Shares and units are valued at the fair market value of our common stock on the date of the grant. Shares and units may be subject to certain performance requirements. If the performance requirements are not met, the restricted shares or units are forfeited. Under the 2008 Plan and the 2014 Plan, as of March 31, 2021, there were 2,011,061 shares of restricted stock and 1,028,932 restricted stock units outstanding with award vesting periods, both performance-based and service-based, of one to four years and a weighted average grant date fair value of $1.92 and $1.91 per share, respectively. Performance-Based Restricted Stock Awards and Performance-Based Stock Option Awards. As of March 31, 2021, there were 287,348 unvested performance-based restricted stock awards and performance-based restricted stock units payable in cash outstanding under the 2014 Plan. Share-based Compensation Costs. Share-based compensation costs were recognized as follows (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2021 2020 2021 2020 Amortization of share-based compensation during the period $ 409 $ 581 $ 1,152 $ 2,022 Amounts capitalized in ending inventory (93 ) (160 ) (259 ) (552 ) Amounts recognized and charged to cost of sales 66 102 454 612 Amounts charged against income for the period before tax $ 382 $ 523 $ 1,347 $ 2,082

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	5. Commitments and contingencies — In addition, we are involved in legal and governmental proceedings as part of the normal course of our business. Reserves have been established when a loss is considered probable and are based on management’s best estimates of our potential liability in these matters. These estimates have been developed in consultation with internal and external counsel and are based on a combination of litigation and settlement strategies. Management believes that such litigation and claims will be resolved without material effect on our financial position or results of operations.

Leases

Leases	9 Months Ended
	Mar. 31, 2021
Leases [Abstract]
Leases	6. — We conduct substantially all operations from leased facilities, including our corporate offices in Dallas and the Dallas warehouse, distribution and retail complex, which were leased on December 31, 2020, subsequent to the sale and leaseback of those facilities on that date. Our retail store locations, our corporate office and our distribution center are under operating leases that will expire over the next 1 to 11 years. Many of our leases include options to renew at our discretion. We include the lease renewal option periods in the calculation of our operating lease assets and liabilities when it is reasonably certain that we will renew the lease. We also lease certain equipment under finance leases that generally expire within 60 months. On December 31 , 2020, we sold our corporate office and Dallas distribution center properties and lease d back those facilities . The lease of the corporate office is for a term of 10 years , and the lease of the distribution center is for an initial term of two and one- half years, with an option to extend the distribution center lease for one additional year. We believe it is reason ably certain the option to exten d will be exercised. We determined the sale price represented the fair value of the underlying assets sold and have no continuing involvement with th e pr operties sold other than a normal leaseback . The two leases, associated with the transaction, were recorded as operating leases. As of March 31, 2021 w e will pay approximately over the 10 year lease term for the corporate office and we will pay approximately $17.3 million in fixed rents and in-substance fixed rents for the Dallas distribution center property over the three and one-half year lease term, including the one-year option period as noted above. Fixed rents and in-substance fixed rents for each lease were discounted using the incremental borrowing rate we established for the respective term of each lease. Subsequent to the petition date, we commenced negotiations with our landlords on substantially all of our ongoing leases, resulting in significant modifications and remeasurement recorded in the first and second quarter of fiscal 2021. As a result of the remeasurements and terminations of rejected leases, we reduced our operating lease right-of-use assets by approximately $32 million and our operating lease liabilities by approximately $124 million, recording a gain of approximately $92 million, which is included in Reorganization items, net (see Note 2) in the unaudited interim Consolidated Statement of Operations. We determine whether an agreement contains a lease at inception based on our right to obtain substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset. Lease liabilities represent the present value of future lease payments and the right-of-use (“ROU”) assets represent our right to use the underlying assets for the respective lease terms. The operating lease liability is measured as the present value of the unpaid lease payments and the ROU asset is derived from the calculation of the operating lease liability. As our leases do not generally provide an implicit rate, we use our incremental borrowing rate as the discount rate to calculate the present value of lease payments. The incremental borrowing rate represents an estimate of the interest rate that would be required to borrow over a similar term, on a collateralized basis in a similar economic environment. Rent escalations occurring during the term of the leases are included in the calculation of the future minimum lease payments and the rent expense related to these leases is recognized on a straight-line basis over the lease term. In addition to minimum lease payments, certain leases require payment of a proportionate share of real estate taxes and certain building operating expenses allocated on a percentage of sales in excess of a specified base. These variable lease costs are not included in the measurement of the ROU asset or lease liability due to unpredictability of the payment amount and are recorded as lease expense in the period incurred. The ROU asset is adjusted to account for previously recorded lease-related expenses such as deferred rent and other lease liabilities. Our lease agreements do not contain residual value guarantees or significant restrictions or covenants other than those customary in such arrangements. The components of lease cost are as follows (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2021 2020 2021 2020 Operating lease cost $ 16,142 $ 23,552 $ 46,429 $ 71,186 Variable lease cost 2,342 6,244 9,308 18,982 Finance lease cost: Amortization of right-of-use assets 49 72 161 213 Interest on lease liabilities 1 7 7 23 Total lease cost $ 18,534 $ 29,875 $ 55,905 $ 90,404 Total lease costs shown above exclude $5.6 million recorded in the nine months ended March 31, 2021, for accelerated recognition of rent expense as a result of abandonment due to our Phoenix distribution center closure. The table below presents additional information related to the Company’s leases as of March 31, 2021 and June 30, 2020: As of March 31, 2021 As of June 30, 2020 Weighted average remaining lease term (in years) Operating leases 4.8 5.9 Finance leases 1.0 2.6 Weighted average discount rate Operating leases 8.4 % 5.8 % Finance leases 2.5 % 3.9 % Other information related to leases, including supplemental disclosures of cash flow information, is as follows (in thousands): Nine Months Ended March 31, 2021 Nine Months Ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 47,692 $ 67,146 Operating cash flows from finance leases 8 22 Financing cash flows from finance leases 167 196 Right-of-use assets obtained in exchange for operating lease liabilities (108,423 ) 28,040 Maturities of lease liabilities were as follows as of March 31, 2021 (in thousands): Operating Leases Finance Leases Total Fiscal year: 2021 (remaining) $ 17,298 $ 60 $ 17,358 2022 68,507 125 68,632 2023 58,844 — 58,844 2024 46,163 — 46,163 2025 31,831 — 31,831 2026 19,397 — 19,397 Thereafter 28,542 — 28,542 Total lease payments $ 270,582 $ 185 $ 270,767 Less: Interest 47,912 5 47,917 Total lease liabilities $ 222,670 $ 180 $ 222,850 Less: Current lease liabilities 53,480 171 53,651 Non-current lease liabilities $ 169,190 $ 9 $ 169,199 Current and non-current finance lease liabilities are recorded in “Accrued liabilities” and “Other liabilities – non-current,” respectively, on our consolidated balance sheet. As of March 31, 2021, there were no operating lease payments for legally binding minimum

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Earnings Per Common Share	7. Earnings per common share — The following table sets forth the computation of basic and diluted earnings per common share (in thousands, except per share amounts): Three Months Ended March 31, Nine Months Ended March 31, 2021 2020 2021 2020 Net income/(loss) $ (37,119 ) $ (31,040 ) $ 21,844 $ (29,731 ) Less: Income to participating securities — — (311 ) — Net income/(loss) attributable to common shares $ (37,119 ) $ (31,040 ) $ 21,533 $ (29,731 ) Weighted average number of common shares outstanding — basic 67,584 45,314 52,741 45,162 Effect of dilutive stock equivalents — — — — Weighted average number of common shares outstanding — diluted 67,584 45,314 52,741 45,162 Net income/(loss) per common share — basic $ (0.55 ) $ (0.69 ) $ 0.41 $ (0.66 ) Net income/(loss) per common share — diluted $ (0.55 ) $ (0.69 ) $ 0.41 $ (0.66 ) For the quarters ended March 31, 2021 and March 31, 2020, options representing the rights to purchase approximately 2.3 million weighted average shares and 2.8 million weighted average shares, respectively, were excluded in the dilutive earnings per share calculation because the assumed exercise of such options would have been anti-dilutive. For the nine months ended March 31, 2021 and March 31, 2020, options representing the rights to purchase approximately 2.6 million weighted average shares and 2.9 million weighted average shares, respectively, were excluded in the dilutive earnings per share calculation, because the assumed exercise of such options would have been anti-dilutive. On February 9, 2021, as part of the Rights Offering, the Company issued warrants to purchase 10 million shares of common stock with an exercise price of $1.65 and a five year term, all which remained outstanding as of March 31, 2021. For the three and nine months ended March 31, 2021, warrants representing the rights to purchase approximately 5.7 million and 1.9 million weighted average shares, respectively were excluded in the dilutive earnings per share calculation because the assumed exercise of such warrants would have been anti-dilutive.

Debt

Debt	9 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Debt	8. Debt — Pre-Petition Financing Agreements Throu gh December 31, 2020, we were party to a credit agreement that provided for an asset-based, five-year On May 14, 2020, we entered into a Limited Forbearance Agreement (the “Forbearance Agreement”) with the lenders under the Pre-Petition ABL Credit Agreement Under the terms of the Forbearance Agreement, the lenders under the Pre-Petition ABL Credit Agreement Pre-Petition ABL Credit Agreement Pursuant to the Forbearance Agreement, the commitment of the lenders under the was permanently reduced from $180.0 million to $130.0 million and new swingline loans were not advanced. During the forbearance period, the lenders were not obligated to fund further loans or issue or renew letters of credit under the . The Forbearance Agreement required loan repayments of $10.0 million under the , and the application of unrestricted and unencumbered cash balances in excess of $32.0 million to the repayment of outstanding borrowings under the . The Forbearance Agreement also required daily cash sweeps to the Company’s main concentration account, a deposit account control agreement over such account, the imposition of additional reporting obligations, including a business plan, cash flow forecasts and working capital plan, and adherence to such cash flow forecasts, subject to certain permitted variances. The Forbearance Agreement also required the Company to retain a liquidation consultant and financial advisor. The Forbearance Agreement ended on May 26, 2020. As no availability remains under the Pre-Petition ABL Credit Agreement, unused commitment fees and interest charges ceased. The filing of the Chapter 11 Cases on May 27, 2020, was an event of default under the Pre-Petition ABL Credit Agreement , making all amounts outstanding under the existing Pre-Petition ABL Credit Agreement immediately due and payable. As of Dec ember 31 , 2020, we had no amounts o utstanding under the Pre-Petition ABL Credit Agreement, and that agreement was terminated. Debtor-In-Possession Financing Agreements On May 29, 2020, we entered into the DIP ABL Credit Agreement, which provided for a super priority secured debtor-in-possession revolving credit facility in an aggregate amount of up to $100.0 million. The Lenders under the DIP ABL Facility were the existing lenders under the Pre-Petition ABL Credit Agreement. On July 10, 2020, we entered into the DIP DDTL Agreement, which provided for delayed draw term loans in an amount not to exceed $25.0 million. On December 31, 2020, the DIP ABL Credit Agreement and the DIP DDTL Agreement were terminated. Post-Emergence Financing Arrangements On December 31, 2020, the Company and its subsidiaries entered into a Credit Agreement (the “New ABL Credit Agreement”) with JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A. and Bank of America, N.A. (collectively, the “Lenders”) that provides for a revolving credit facility in an aggregate amount of $110.0 million (the “New ABL Facility”). The New ABL Credit Agreement includes conditions to borrowings, representations and warranties, affirmative and negative covenants, and events of default customary for financings of this type and size. The New ABL Credit Agreement requires the Company to maintain a minimum fixed charge coverage ratio if borrowing availability falls below certain minimum levels, after the first anniversary of the agreement. Under the terms of the New ABL Credit Agreement, amounts available for advances would be subject to a borrowing base as described in the New ABL Credit Agreement. Under the New ABL Credit Agreement, borrowings will initially bear interest at a rate equal to the adjusted LIBOR rate plus a spread of 2.75% or the Commercial Bank Floating Bank rate plus a spread of 1.75%. The New ABL Facility is secured by a first priority lien on all present and after-acquired tangible and intangible assets of the Company and its subsidiaries other than certain collateral that secures the Term Loan (as defined below). The commitments of the Lenders under the New ABL Facility will terminate and outstanding borrowings under the New ABL Facility will mature on December 31, 2023. As of March 31, 2021, we had no borrowings outstanding under the New ABL Facility, $8.8 million of letters of credit outstanding, and borrowing availability of $48.4 under the New ABL Facility. On December 31, 2020, the Company, Alter Domus (US), LLC, as administrative agent, and the lenders named therein (the “Term Lenders”), including Tensile Capital Partners Master Fund LP and affiliates of Osmium Partners, LLC, entered into a Credit Agreement (the “Term Loan Credit Agreement”) provided a term loan of $25.0 million to the Company (the “Term Loan”). On December 31, 2020, three new directors were selected for membership on the Board of Directors by the Backstop Party, in accordance with the terms of the Plan of Reorganization. Pursuant to the Term Loan Credit Agreement, Tensile Capital Partners Master Fund, LP and affiliates of Osmium Partners, LLC., held $19.0 million and $1.0 million, respectively, of the $25.0 million outstanding Term Loan. Pursuant to the terms of the Term Loan Credit Agreement, the Term Loan has a maturity date of December 31, 2024 and bears interest at a rate of 14% per annum, with interest payable in-kind. Under the terms of the Term Loan Credit Agreement, the Term Loan is secured by a second lien on the collateral securing the New ABL Facility and a first lien on certain other assets of the Company as described in the Term Loan Credit Agreement. The Term Loan is subject to optional prepayment after the first anniversary of the date of issuance at prepayment price equal to the greater of (1) the original principal amount of the Term Loan plus accrued interest thereon, and (2) 125% of the original principal amount of the Term Loan. The Term Loan is subject to mandatory prepayment in connection with a change of control of the Company as described in the Term Loan Credit Agreement. The Term Loan Credit Agreement also includes customary covenants and events of default. As of March 31, 2021, the outstanding principal balance of the Term Loan was $25.4 million, net of debt issuance costs. The fair value of the Company’s debt approximated its carrying value at March 31, 2021. At March 31, 2021, we are in compliance with covenants in the New ABL Facility and Term Loan. Interest Expense Interest expense of $1.4 million for the third quarter of fiscal 2021 is primarily due to accrued interest on the Term Loan along with the amortization of financing fees incurred for the New ABL facility. Interest expense was $0.5 million for the third quarter fiscal 2020. Interest expense for the first nine months of fiscal 2021 from the New ABL credit facility, the DIP ABL Credit Agreement and the Term Loan of $6.7 million was comprised of the amortization of financing fees of $5.2 million, commitment fees of $0.6 million, and accrued PIK interest on the Term Loan of $0.9 million. Interest expense for the first nine months of fiscal 2020 from the Pre-Petition ABL Credit Agreement of $1.9 million was comprised of interest of $1.5 million, commitment fees of $0.2 million, and the amortization of financing fees of $0.2 million.

Property and Equipment, Includi

Property and Equipment, Including Depreciation	9 Months Ended
	Mar. 31, 2021
Property Plant And Equipment [Abstract]
Property and Equipment, Including Depreciation	9. Property and equipment, including depreciation — Accumulated depreciation of owned property and equipment as of March 31, 2021 and June 30, 2020 was $148.5 million and $231.1 million, respectively. The decrease in the current year was due to the stores closed permanently during the first quarter of fiscal 2021, the Phoenix distribution center closure and the sale-leaseback of our corporate office and Dallas distribution center properties in the second quarter of fiscal 2021 which resulted in property and equipment disposals, as discussed in Note 13. As of March 31, 2021, due to the ongoing impact of COVID-19, we performed an interim impairment assessment of our leasehold improvement assets and right-of-use assets, which did not result in a material impairment for the three and nine month periods ending March 31, 2021. While we believe our estimates and judgements about projected future cash flows are reasonable, future impairment charges may be required if the future cash flows, as projected, do not occur, or if events changes requiring us to revise our estimates. In the quarter ended December 31, 2020, we sold our corporate office and Dallas distribution center properties and land with a total net book value of $18.9 million in a sale-leaseback transaction (see further discussion in Note 13 below). Gains related to the sale or other disposal of such assets are presented in reorganization items on our Consolidated Statement of Operations.

Income Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	10. Income taxes —The Company and its subsidiaries files U.S. federal, state and local income tax returns. With few exceptions, the Company and its subsidiaries are no longer subject to state and local income tax examinations for years prior to fiscal 2016 and are no longer subject to federal income tax examinations for years prior to fiscal 2013. On March 27, 2020, in an effort to mitigate the economic impact of the COVID-19 pandemic, the U.S. Congress enacted the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The CARES Act includes certain corporate income tax provisions, which among other things, included a five-year carryback of net operating losses and acceleration of the corporate alternative minimum tax credit. The Company has evaluated the CARES Act and it is not expected to have a material impact on the income tax provision. The CARES Act also contains provisions for deferral of the employer portion of social security taxes incurred through the end of calendar 2020 and an employee retention credit, a refundable payroll credit for 50% of wages and health benefits paid to employees not providing services due to the pandemic. As a result of the CARES Act, we continued to defer qualified payroll taxes through March 31, 2021. Current and non-current qualified deferred payroll taxes are each $2.1 million as of March 31, 2021. The effective tax rates for the quarters ended March 31, 2021 and 2020 were (0.0%) and (0.4%), respectively. The effective tax rates for the nine months ended March 31, 2021 and 2020 were 3.3% and (0.3%), respectively. A full valuation allowance is currently recorded against substantially all of the Company’s deferred tax assets. A deviation from the customary relationship between income tax expense and (benefit) and pretax income (loss) results from the effects of the valuation allowance.

Cash, Cash Equivalents and Rest

Cash, Cash Equivalents and Restricted Cash	9 Months Ended
	Mar. 31, 2021
Cash And Cash Equivalents [Abstract]
Cash, Cash Equivalents and Restricted Cash	11. Cash, cash equivalents and restricted cash — Cash and cash equivalents include credit card receivables and all highly liquid instruments with original maturities of three months or less. Cash equivalents are carried at cost, which approximates fair value. As of March 31, 2021 and June 30, 2020, credit card receivables from third party consumer credit card providers were $3.3 million and $3.7 million, respectively. Such receivables are generally collected within one week of the balance sheet date. Restricted cash aggregating $55.6 million consists of $46.3 million, which is being held in the Unsecured Creditor Claim Fund and $9.3 million which is being held in the Wells Fargo Restricted Fund (see Note 2).

Intellectual Property

Intellectual Property	9 Months Ended
	Mar. 31, 2021
Intangible Assets Net Excluding Goodwill [Abstract]
Intellectual Property	12. Intellectual property — Our intellectual property primarily consists of indefinite lived trademarks. Trademarks and other intellectual property are reviewed for impairment annually in the fourth fiscal quarter, and may be reviewed more frequently if indicators of impairment are present. As of March 31, 2021, the carrying value of the intellectual property, which included indefinite-lived trademarks, was $1.6 million, and no impairment was identified or recorded.

Sale-Leaseback

Sale-Leaseback	9 Months Ended
	Mar. 31, 2021
Leases [Abstract]
Sale-Leaseback	13. Sale-leaseback — On December 7, 2020, we entered into an agreement to sell our corporate office and Dallas distribution center properties and leaseback those facilities (the “Purchase and Sales Agreement”). On December 31, 2020, with the authority granted us by the Bankruptcy Court, we executed those transactions. The lease of the corporate office is for a term of 10 years and the lease of the distribution center properties is for an initial term of two and one half years, with an option to extend the distribution center properties lease for one additional year. We believe it is reasonably certain the option to extend will be exercised. We determined the sale price represented the fair value of the underlying assets sold and we have no continuing involvement with the properties sold other than a normal leaseback The consideration received for the sale, as reduced by closing and transaction costs, was $68.5 million, and the net book value of properties sold was $18.9 million, resulting in a $49.6 million gain, which was immediately recognized as of December 31, 2020. Cash proceeds were deposited directly into the Unsecured Creditor Claim Fund. See Notes 2 and 11. The two leases, associated with the transaction, were recorded as operating leases. As of March 31, 2021 w e will pay approximately over the 10 year lease term for the corporate office and we will pay approximately $17.3 million in fixed rents and in-substance fixed rents for the Dallas distribution center property over the three and one-half year lease term, including the one-year option period as noted above. Fixed rents and in-substance fixed rents for each lease were discounted using the incremental borrowing rate we established for the respective term of each lease.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Accounting Pronouncement Recently Adopted	Accounting Pronouncement Recently Adopted In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326)” (“ASC 326”), which makes significant changes to the accounting for credit losses on financial assets and disclosures. The standard requires immediate recognition of management’s estimates of current expected credit losses. We adopted ASC 326 in the first quarter of fiscal 2021. The adoption did not have a material impact to our consolidated financial statements.

Bankruptcy Accounting (Tables)

Bankruptcy Accounting (Tables)	9 Months Ended
	Mar. 31, 2021
Reorganizations [Abstract]
Schedule of Liabilities Subject to Compromise in Bankruptcy Reorganization Process	Where there was uncertainty about whether a secured claim would be paid or impaired pursuant to the Chapter 11 Cases, we classified the entire amount of the claim as an outstanding liability subject to compromise as of June 30, 2020. As of March 31, 2021 As of June 30, 2020 Accounts payable $ - $ 83,467 Accrued expenses - 6,630 Operating lease liabilities - 71,097 Lease liabilities - non-current - 294,812 Other liabilities - non-current - 333 Liabilities subject to compromise $ - $ 456,339
Schedule of Restructuring and Abandonment Charges	Restructuring and abandonment charges total $1.0 million and $7.6 million for the three and nine months ended March 31, 2021, respectively, and include the following (in thousands): Three Months Ended Nine Months Ended March 31, 2021 March 31, 2021 Restructuring costs: Severance and compensation related costs $ 1,047 $ 1,916 Total restructuring costs $ 1,047 $ 1,916 Abandonment costs: Accelerated recognition of operating right-of-use assets $ - $ 5,638 Total abandonment costs $ - $ 5,638 Total restructuring and abandonment costs $ 1,047 $ 7,554
Schedule of Reorganization Items	Reorganization items included in our consolidated statement of operations represent amounts directly resulting from the Chapter 11 Cases and total a net expense of $23.6 million and a total net benefit of $62.2 million for the three and nine months ended March 31, 2021, respectively, and include the following (in thousands): Three Months Ended Nine Months Ended March 31, 2021 March 31, 2021 Reorganization items, net: Professional and legal fees $ 3,733 $ 33,853 Gains on lease termination, net of estimated claims - (66,247 ) Claims related costs 874 874 Rights Offering and Backstop Agreement 18,990 18,990 Gain on sale-leaseback - (49,639 ) Total reorganization items, net $ 23,597 $ (62,169 )

Share-Based Incentive Plans (Ta

Share-Based Incentive Plans (Tables)	9 Months Ended
	Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Recognized Share-Based Compensation Costs	Share-based compensation costs were recognized as follows (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2021 2020 2021 2020 Amortization of share-based compensation during the period $ 409 $ 581 $ 1,152 $ 2,022 Amounts capitalized in ending inventory (93 ) (160 ) (259 ) (552 ) Amounts recognized and charged to cost of sales 66 102 454 612 Amounts charged against income for the period before tax $ 382 $ 523 $ 1,347 $ 2,082

Leases (Tables)

Leases (Tables)	9 Months Ended
	Mar. 31, 2021
Leases [Abstract]
Components of Lease Cost	The components of lease cost are as follows (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2021 2020 2021 2020 Operating lease cost $ 16,142 $ 23,552 $ 46,429 $ 71,186 Variable lease cost 2,342 6,244 9,308 18,982 Finance lease cost: Amortization of right-of-use assets 49 72 161 213 Interest on lease liabilities 1 7 7 23 Total lease cost $ 18,534 $ 29,875 $ 55,905 $ 90,404
Schedule of Additional Information Related to Leases	The table below presents additional information related to the Company’s leases as of March 31, 2021 and June 30, 2020: As of March 31, 2021 As of June 30, 2020 Weighted average remaining lease term (in years) Operating leases 4.8 5.9 Finance leases 1.0 2.6 Weighted average discount rate Operating leases 8.4 % 5.8 % Finance leases 2.5 % 3.9 %
Schedule of Other Information Related to Leases Including Supplemental Disclosures of Cash Flow Information	Other information related to leases, including supplemental disclosures of cash flow information, is as follows (in thousands): Nine Months Ended March 31, 2021 Nine Months Ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 47,692 $ 67,146 Operating cash flows from finance leases 8 22 Financing cash flows from finance leases 167 196 Right-of-use assets obtained in exchange for operating lease liabilities (108,423 ) 28,040
Schedule of Maturities of Lease Liabilities	Maturities of lease liabilities were as follows as of March 31, 2021 (in thousands): Operating Leases Finance Leases Total Fiscal year: 2021 (remaining) $ 17,298 $ 60 $ 17,358 2022 68,507 125 68,632 2023 58,844 — 58,844 2024 46,163 — 46,163 2025 31,831 — 31,831 2026 19,397 — 19,397 Thereafter 28,542 — 28,542 Total lease payments $ 270,582 $ 185 $ 270,767 Less: Interest 47,912 5 47,917 Total lease liabilities $ 222,670 $ 180 $ 222,850 Less: Current lease liabilities 53,480 171 53,651 Non-current lease liabilities $ 169,190 $ 9 $ 169,199

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Computation of Basic and Diluted Earnings Per Common Share	The following table sets forth the computation of basic and diluted earnings per common share (in thousands, except per share amounts): Three Months Ended March 31, Nine Months Ended March 31, 2021 2020 2021 2020 Net income/(loss) $ (37,119 ) $ (31,040 ) $ 21,844 $ (29,731 ) Less: Income to participating securities — — (311 ) — Net income/(loss) attributable to common shares $ (37,119 ) $ (31,040 ) $ 21,533 $ (29,731 ) Weighted average number of common shares outstanding — basic 67,584 45,314 52,741 45,162 Effect of dilutive stock equivalents — — — — Weighted average number of common shares outstanding — diluted 67,584 45,314 52,741 45,162 Net income/(loss) per common share — basic $ (0.55 ) $ (0.69 ) $ 0.41 $ (0.66 ) Net income/(loss) per common share — diluted $ (0.55 ) $ (0.69 ) $ 0.41 $ (0.66 ) For the quarters ended March 31, 2021 and March 31, 2020, options representing the rights to purchase approximately 2.3 million weighted average shares and 2.8 million weighted average shares, respectively, were excluded in the dilutive earnings per share calculation because the assumed exercise of such options would have been anti-dilutive. For the nine months ended March 31, 2021 and March 31, 2020, options representing the rights to purchase approximately 2.6 million weighted average shares and 2.9 million weighted average shares, respectively, were excluded in the dilutive earnings per share calculation, because the assumed exercise of such options would have been anti-dilutive. On February 9, 2021, as part of the Rights Offering, the Company issued warrants to purchase 10 million shares of common stock with an exercise price of $1.65 and a five year term, all which remained outstanding as of March 31, 2021. For the three and nine months ended March 31, 2021, warrants representing the rights to purchase approximately 5.7 million and 1.9 million weighted average shares, respectively were excluded in the dilutive earnings per share calculation because the assumed exercise of such warrants would have been anti-dilutive.

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details) $ / shares in Units, $ in Thousands

Feb. 09, 2021USD ($)$ / sharesshares

Jan. 04, 2021USD ($)$ / sharesshares

Jul. 15, 2020Store

Jun. 09, 2020Store

Jun. 08, 2020Store

May 29, 2020

Mar. 31, 2021USD ($)

Dec. 31, 2020USD ($)Director

Sep. 30, 2020USD ($)Store

Mar. 31, 2020USD ($)

Mar. 31, 2021USD ($)

Mar. 31, 2020USD ($)

Jun. 30, 2020USD ($)Store

Jul. 10, 2020USD ($)

May 28, 2020USD ($)

Change In Accounting Estimate [Line Items]

Number of stores not re-opened | Store

2

Number of stores permanent closure | Store

197

Petition date

May 27, 2020

Maximum ownership transfer allowable

4.50%

Operating losses

$ 12,030

$ 30,647

$ 32,830

$ 28,198

$ 159,200

Change in accounting principle, accounting standards update, adopted [true false]

true

true

Change in accounting principle, accounting standards update, adoption date

Jul. 1, 2020

Jul. 1, 2020

Change in accounting principle, accounting standards update, immaterial effect [true false]

true

true

Accounting Standards Update [Extensible List]

us-gaap:AccountingStandardsUpdate201613Member

Backstop Commitment Agreement

Change In Accounting Estimate [Line Items]

Number of directors | Director

9

Number of continuing directors | Director

5

Backstop Commitment Agreement | Osmium Partners LLC

Change In Accounting Estimate [Line Items]

Number of new shares exchanged for business close | shares

1

Subscription period for rights offering expired

Feb. 1, 2021

Rights offering expects to close period

Feb. 9, 2021

Backstop Commitment Agreement | Osmium Partners LLC | Warrant

Change In Accounting Estimate [Line Items]

Warrants rights to purchase common stock | shares

10,000,000

Exercise price of warrant | $ / shares

$ 1.65

Warrant right expense

$ 2,500

$ 2,500

Warrants term

5 years

Backstop Commitment Agreement | Osmium Partners LLC | Rights Offering

Change In Accounting Estimate [Line Items]

Shares issued in connection with rights offering

$ 40,000

Proceeds from rights offering

$ 40,000

40,000

Non-cash charges

14,500

14,500

Backstop Commitment Agreement | Osmium Partners LLC | Rights Offering | Common Stock

Change In Accounting Estimate [Line Items]

Shares issued in connection with rights offering

19,800

Backstop Commitment Agreement | Backstop Party

Change In Accounting Estimate [Line Items]

Number of new directors appointed | Director

3

Backstop Commitment Agreement | Backstop Party | Osmium Partners LLC | Common Stock

Change In Accounting Estimate [Line Items]

Shares issued in connection with rights offering

$ 20,200

Rights offering proposed to conduct, purchase price per share | $ / shares

$ 1.10

Backstop party receive backstop fee

$ 2,000

$ 2,000

$ 2,000

Backstop Commitment Agreement | Backstop Party | Osmium Partners LLC | Rights Offering | Common Stock

Change In Accounting Estimate [Line Items]

Rights offering proposed to conduct, purchase price per share | $ / shares

$ 1.10

Backstop Commitment Agreement | Backstop Party | Osmium Partners LLC | Rights Offering | Common Stock | Maximum

Change In Accounting Estimate [Line Items]

Shares issued in connection with rights offering (in shares) | shares

16,000,000

Backstop Commitment Agreement | Equity Committee

Change In Accounting Estimate [Line Items]

Number of new directors appointed | Director

1

Backstop Commitment Agreement | Eligible Holders | Osmium Partners LLC | Rights Offering | Common Stock | Maximum

Change In Accounting Estimate [Line Items]

Shares issued in connection with rights offering

$ 24,000

Phoenix Distribution Center

Change In Accounting Estimate [Line Items]

Abandonment charges

$ 800

$ 4,800

DIP ABL Facility

Change In Accounting Estimate [Line Items]

Revolving credit facility, aggregate principal amount

$ 100,000

Maximum number of store locations approving procedures for closing | Store

230

Number of store locations in process to close | Store

132

Number of stores expect to close | Store

65

DIP Term Facility | Secured Debt

Change In Accounting Estimate [Line Items]

Revolving credit facility, aggregate principal amount

$ 25,000

Bankruptcy Accounting - Narrati

Bankruptcy Accounting - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Bankruptcy Accounting [Line Items]
Proceeds from issuance of term loan under sale and leaseback after payment of property taxes				$ 67,500,000
Proceeds from issuance of term loan under sale and leaseback				18,800,000
Restricted cash deposits	$ 9,300,000			9,300,000		$ 14,200,000
Bankruptcy claims, amount of claim fund to be distributed	46,300,000			46,300,000
Additional contribution to unsecured creditor claim fund	40,000,000			40,000,000
Restructuring, impairment and abandonment charges	1,000,000	$ 0		7,600,000	$ 0
Restructuring and abandonment expenses	1,047,000			7,554,000
Reorganization items, net	23,597,000	$ 0		(62,169,000)	$ 0
Gain on lease liabilities of estimated claims			$ 92,000,000	66,247,000
Cash paid for reorganization items	3,700,000			22,600,000
Accrued professional fees	$ 15,600,000			15,600,000
Employee Retention Costs
Bankruptcy Accounting [Line Items]
Restructuring and abandonment expenses				300,000
Severance Costs
Bankruptcy Accounting [Line Items]
Restructuring and abandonment expenses				$ 700,000

Bankruptcy Accounting - Schedul

Bankruptcy Accounting - Schedule of Liabilities Subject to Compromise in Bankruptcy Reorganization Process (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Reorganizations [Abstract]
Accounts payable		$ 83,467
Accrued expenses		6,630
Operating lease liabilities	$ 53,480	71,097
Lease liabilities - non-current	$ 169,190	294,812
Other liabilities - non-current		333
Liabilities subject to compromise		$ 456,339

Bankruptcy Accounting - Sched_2

Bankruptcy Accounting - Schedule of Restructuring and Abandonment Charges (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2021
Restructuring costs:
Severance and compensation related costs	$ 1,047	$ 1,916
Total restructuring costs	1,047	1,916
Abandonment costs:
Accelerated recognition of operating right-of-use assets		5,638
Total abandonment costs		5,638
Total restructuring and abandonment costs	$ 1,047	$ 7,554

Bankruptcy Accounting - Sched_3

Bankruptcy Accounting - Schedule of Reorganization Items (Details) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2021	Mar. 31, 2020
Reorganization items, net:
Professional and legal fees	$ 3,733,000			$ 33,853,000
Gains on lease termination, net of estimated claims			$ (92,000,000)	(66,247,000)
Claims related costs	874,000			874,000
Rights Offering and Backstop Agreement	18,990,000			18,990,000
Gain on sale-leaseback				(49,639,000)
Total reorganization items, net	$ 23,597,000	$ 0		$ (62,169,000)	$ 0

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Disaggregation Of Revenue [Line Items]
Impairment charges			$ 0
Breakage
Disaggregation Of Revenue [Line Items]
Breakage income recognized	$ 100,000	$ 100,000	$ 300,000	$ 400,000

Share-Based Incentive Plans - N

Share-Based Incentive Plans - Narrative (Details)	9 Months Ended
	Mar. 31, 2021$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Exercise price of stock options outstanding, low end of range | $ / shares	$ 1.64
Exercise price of stock option outstanding, high end of range | $ / shares	$ 20.91
Stock Option Awards | 2014 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares available for future awards	2,400,000
Expiration period (in years)	10 years
Shares available for grant	5,900,000
Stock Option Awards | 2014 Plan | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	1 year
Stock Option Awards | 2014 Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	4 years
Stock Option Awards | 2008 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expiration period (in years)	10 years
Stock Option Awards | 2008 Plan | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	1 year
Stock Option Awards | 2008 Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	4 years
Restricted Stock Awards | 2008 and 2014 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards outstanding	2,011,061
Weighted average grant date fair value of awards granted (in dollars per share) | $ / shares	$ 1.92
Restricted Stock Awards | 2008 and 2014 Plan | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	1 year
Restricted Stock Awards | 2008 and 2014 Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	4 years
Restricted Stock Units | 2008 and 2014 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards outstanding	1,028,932
Weighted average grant date fair value of awards granted (in dollars per share) | $ / shares	$ 1.91
Restricted Stock Units | 2008 and 2014 Plan | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	1 year
Restricted Stock Units | 2008 and 2014 Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period (in years)	4 years
Performance-Based Restricted Stock Awards, Restricted Stock Units Payable in Cash | 2014 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards outstanding	287,348

Share-Based Incentive Plans - S

Share-Based Incentive Plans - Schedule of Recognized Share-Based Compensation Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Share-based incentive plans
Share-based compensation	$ 382	$ 523	$ 1,347	$ 2,082
Amounts capitalized in ending inventory	(93)	(160)	(259)	(552)
Share Based Compensation Amortization
Share-based incentive plans
Share-based compensation	409	581	1,152	2,022
Cost of Sales
Share-based incentive plans
Share-based compensation	$ 66	$ 102	$ 454	$ 612

Leases - Narrative (Details)

Leases - Narrative (Details)	6 Months Ended	9 Months Ended
	Dec. 31, 2019USD ($)	Mar. 31, 2021USD ($)Lease
Lessee Lease Description [Line Items]
Existence of option to renew		true
Number of operating leases under sale lease back | Lease		2
Reduction of operating lease right-of-use assets upon remeasurements and termination of rejected leases	$ 32,000,000
Reduction of operating lease liabilities upon remeasurements and termination of rejected leases	124,000,000
Gain on lease liabilities of estimated claims	$ 92,000,000	$ 66,247,000
Accelerated rent expense related to planned abandonment		5,600,000
Operating lease not yet commenced		$ 0
Corporate Office
Lessee Lease Description [Line Items]
Sale lease back, lease term		10 years
Sale lease back fixed rent payable		$ 10,000,000
Distribution Center Facilities
Lessee Lease Description [Line Items]
Sale lease back, lease term		2 years 6 months
Sales-type lease, existence of option to extend [true false]		true
Option to extend lease term		1 year
Sale lease back fixed rent payable		$ 17,300,000
Lease term including additional lease term		3 years 6 months
Distribution Center and Retail Store Location | Minimum [Member]
Lessee Lease Description [Line Items]
Operating lease term of contract		1 year
Distribution Center and Retail Store Location | Maximum
Lessee Lease Description [Line Items]
Operating lease term of contract		11 years
Equipment | Maximum
Lessee Lease Description [Line Items]
Finance lease term of contract		60 months

Leases - Components of Lease Co

Leases - Components of Lease Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Leases [Abstract]
Operating lease cost	$ 16,142	$ 23,552	$ 46,429	$ 71,186
Variable lease cost	2,342	6,244	9,308	18,982
Amortization of right-of-use assets	49	72	161	213
Interest on lease liabilities	1	7	7	23
Total lease cost	$ 18,534	$ 29,875	$ 55,905	$ 90,404

Leases - Schedule of Additional

Leases - Schedule of Additional Information Related to Leases (Detail)	Mar. 31, 2021	Jun. 30, 2020
Weighted average remaining lease term (in years)
Operating leases	4 years 9 months 18 days	5 years 10 months 24 days
Finance leases	1 year	2 years 7 months 6 days
Operating leases	8.40%	5.80%
Finance leases	2.50%	3.90%

Leases - Schedule of Other Info

Leases - Schedule of Other Information Related to Leases Including Supplemental Disclosures of Cash Flow Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 47,692	$ 67,146
Operating cash flows from finance leases	8	22
Financing cash flows from finance leases	167	196
Right-of-use assets obtained in exchange for operating lease liabilities	$ (108,423)	$ 28,040

Leases - Schedule of Maturities

Leases - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Operating Leases Fiscal year:
2021 (remaining)	$ 17,298
2022	68,507
2023	58,844
2024	46,163
2025	31,831
2026	19,397
Thereafter	28,542
Total lease payments	270,582
Less: Interest	47,912
Total lease liabilities	222,670
Less: Current lease liabilities	53,480	$ 71,097
Non-current lease liabilities	169,190	$ 294,812
Finance Leases Fiscal year:
2021 (remaining)	60
2022	125
Total lease payments	185
Less: Interest	5
Total lease liabilities	180
Less: Current lease liabilities	171
Non-current lease liabilities	9
Total Fiscal year:
2021 (remaining)	17,358
2022	68,632
2023	58,844
2024	46,163
2025	31,831
2026	19,397
Thereafter	28,542
Total lease payments	270,767
Less: Interest	47,917
Total lease liabilities	222,850
Less: Current lease liabilities	53,651
Non-current lease liabilities	$ 169,199

Earnings Per Common Share - Com

Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Earnings Per Share [Abstract]
Net income (loss)	$ (37,119)	$ (31,040)	$ 21,844	$ (29,731)
Less: Income to participating securities			(311)
Net income/(loss) attributable to common shares	$ (37,119)	$ (31,040)	$ 21,533	$ (29,731)
Weighted average number of common shares outstanding — basic	67,584	45,314	52,741	45,162
Weighted average number of common shares outstanding — diluted	67,584	45,314	52,741	45,162
Net income/(loss) per common share — basic	$ (0.55)	$ (0.69)	$ 0.41	$ (0.66)
Net income/(loss) per common share — diluted	$ (0.55)	$ (0.69)	$ 0.41	$ (0.66)

Earnings Per Common Share - Nar

Earnings Per Common Share - Narrative (Details) - $ / shares shares in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Feb. 09, 2021
Backstop Commitment Agreement | Osmium Partners LLC | Warrant
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Warrants to purchase common stock					10
Exercise price of warrant					$ 1.65
Warrants term					5 years
Stock Option Awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Weighted average shares excluded from computation of diluted earnings per share	2.3	2.8	2.6	2.9
Warrant
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Weighted average shares excluded from computation of diluted earnings per share	5.7		1.9

Debt - Narrative (Details)

Debt - Narrative (Details)	Dec. 31, 2020USD ($)Director	Mar. 31, 2021USD ($)	Dec. 31, 2019USD ($)	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)	Jul. 10, 2020USD ($)	May 29, 2020USD ($)	May 14, 2020USD ($)	May 13, 2020USD ($)
DIP DDTL Agreement
Line Of Credit Facility [Line Items]
Maximum borrowing capacity						$ 25,000,000
Pre-Petition ABL Credit Agreement
Line Of Credit Facility [Line Items]
Term of credit facility (in years)				5 years
Maximum borrowing capacity		$ 180,000,000		$ 180,000,000				$ 130,000,000	$ 180,000,000
Revolving credit facility maturity date				Jan. 29, 2024
Loan repayment requirement	$ 10,000,000
Unencumbered cash balances in excess	32,000,000
Revolving credit facility outstanding amount		0		$ 0
Availability under the credit facility		0		0
Interest expense			$ 500,000		$ 1,900,000
Interest expense, debt					1,500,000
Amortization of financing fees					200,000
Commitment fees					$ 200,000
DIP ABL Facility
Line Of Credit Facility [Line Items]
Maximum borrowing capacity							$ 100,000,000
New ABL Credit Agreement
Line Of Credit Facility [Line Items]
Maximum borrowing capacity	110,000,000
Revolving credit facility outstanding amount		0		0
Availability under the credit facility		48,400,000		$ 48,400,000
Debt instrument, maturity date				Dec. 31, 2023
Outstanding letters of credit		8,800,000		$ 8,800,000
Interest expense		1,400,000
New ABL Credit Agreement | LIBOR
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate				2.75%
New ABL Credit Agreement | Commercial Bank Floating Bank Rate
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate				1.75%
Term Loan Credit Agreement
Line Of Credit Facility [Line Items]
Maximum borrowing capacity	25,000,000
Revolving credit facility maturity date				Dec. 31, 2024
Revolving credit facility outstanding amount		$ 25,400,000		$ 25,400,000
Outstanding term loan held	$ 25,000,000
Term loan credit agreement interest rate		14.00%		14.00%
Term loan credit agreement prepayment terms				The Term Loan is subject to optional prepayment after the first anniversary of the date of issuance at prepayment price equal to the greater of (1) the original principal amount of the Term Loan plus accrued interest thereon, and (2) 125% of the original principal amount of the Term Loan.
Term loan credit agreement prepayment percentage on principal				125.00%
Term Loan Credit Agreement | Backstop Party
Line Of Credit Facility [Line Items]
Number of new directors appointed | Director	3
Term Loan Credit Agreement | Tensile Capital Partners Master Fund, LP
Line Of Credit Facility [Line Items]
Outstanding term loan held	$ 19,000,000
Term Loan Credit Agreement | Affiliates of Osmium Partners, LLC
Line Of Credit Facility [Line Items]
Outstanding term loan held	$ 1,000,000
DIP ABL Credit Agreement and DIP Term Facility
Line Of Credit Facility [Line Items]
Interest expense				$ 6,700,000
Interest expense, debt				900,000
Amortization of financing fees				5,200,000
Commitment fees				$ 600,000

Property and Equipment, Inclu_2

Property and Equipment, Including Depreciation - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020
Property Plant And Equipment [Abstract]
Accumulated depreciation	$ 148.5		$ 231.1
Net book value of assets sold under sale leaseback transaction	$ 18.9	$ 18.9

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Current qualified deferred payroll taxes CARES Act	$ 2.1		$ 2.1
Non-current qualified deferred payroll taxes CARES Act	$ 2.1		$ 2.1
Effective tax rate	0.00%	(0.40%)	3.30%	(0.30%)

Cash, Cash Equivalents and Re_2

Cash, Cash Equivalents and Restricted Cash - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020
Cash And Cash Equivalents [Abstract]
Credit card receivables from third party consumer credit card providers	$ 3,300		$ 3,700
Restricted cash	55,569
Escrow deposit	46,300
Restricted cash deposits	$ 9,300	$ 14,200

Intellectual Property - Narrati

Intellectual Property - Narrative (Details) - Intellectual Property	9 Months Ended
	Mar. 31, 2021USD ($)
Indefinite Lived Intangible Assets By Major Class [Line Items]
Carrying value of intellectual property	$ 1,600,000
Impairment of intellectual property	$ 0

Sale-Leaseback - Narrative (Det

Sale-Leaseback - Narrative (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2021USD ($)Lease	Dec. 31, 2020USD ($)
Sale Leaseback Transaction [Line Items]
Sale leaseback transaction, lease terms	On December 7, 2020, we entered into an agreement to sell our corporate office and Dallas distribution center properties and leaseback those facilities (the “Purchase and Sales Agreement”).  On December 31, 2020, with the authority granted us by the Bankruptcy Court, we executed those transactions.
Sale leaseback transaction, date	December 7, 2020
Sale leaseback, consider received	$ 68,500
Sale and leaseback, net value of properties sold	18,900	$ 18,900
Sale and leaseback, gain recognized	$ 49,639
Number of operating leases under sale lease back | Lease	2
Corporate Office
Sale Leaseback Transaction [Line Items]
Sale lease back, lease term	10 years
Sale lease back fixed rent payable	$ 10,000
Distribution Center Facilities
Sale Leaseback Transaction [Line Items]
Sale lease back, lease term	2 years 6 months
Sales-type lease, existence of option to extend [true false]	true
Option to extend lease term	1 year
Sale lease back fixed rent payable	$ 17,300
Lease term including additional lease term	3 years 6 months