Off-price retailer Tuesday Morning, seeking to improve its U.S. supply chain since exiting a pandemic-fueled bankruptcy, could be closer to realizing its goal with the help of a well-known investor backing retailers including Pier 1 Imports, Linens ‘n Things, RadioShack and Stein Mart.

The Dallas-based retailer, known for luring treasure hunter-type customers to its 491 stores throughout the United States, has secured $32 million in convertible debt financing from a special purpose vehicle formed by Retail Ecommerce Ventures LLC and Ayon Capital LLC, both based in Florida. In addition to the financing from the partnership, members of Tuesday Morning's management team, including CEO Fred Hand, are providing $3 million in convertible debt financing to the retailer.

“We believe this milestone transaction will strengthen our financial position and provide sufficient liquidity to execute on our strategic plan, allowing us to maintain strong relationships with our valued partners and elevate offerings for our customers," Hand said in a statement. Tuesday Morning did not immediately return an interview request from CoStar News.

The total amount of $35 million is expected to strengthen the balance sheet of the home goods retailer and give it the ability to launch an initiative that includes an e-commerce presence and digital advertising campaign to complement its stores, executives said.

The funds come as Tuesday Morning grapples with financial and management challenges. Tuesday Morning was expected to hold an earnings call this week, but the company has yet to set a day and time for an update with its investors. As of late Tuesday, a share of stock was trading for 18 cents, below the $1 price typically required to maintain a stock market listing. Recently, the retailer has also seen senior executives, including its chief financial officer, leave the company.

The deal gives Tuesday Morning access to Retail Ecommerce Venture's fulfillment network, infrastructure and systems and technology, as well as a licensing agreement allowing Tuesday Morning to sell Pier 1 products. Retail Ecommerce Ventures and Ayon will also make up most of the retailer's board.

Retail Ecommerce Ventures, founded by Tai Lopez and Alex Mehr in 2019, sees a "tremendous long-term opportunity for Tuesday Morning in the home goods and décor category," as consumers have grown to expect an omnichannel experience since the beginning of the pandemic, the partners said in a statement. The deal is expected to close Monday.

This latest investment by Retail Ecommerce Ventures into Tuesday Morning seems like a continuation of the firm's strategy, said Neil Saunders, managing director of GlobalData and a retail analyst who tracks the industry.

"They look for distressed retailers or retailers who need investment and buy them," Saunders told CoStar News, "They've done this in the past with Pier 1 and they really have a strategy of taking a physical retailer and pushing them online."

For off-price retailer Tuesday Morning, Saunders said it could be more difficult to make the transition to e-commerce with an ever-changing assortment of discounted home goods and products with thin margins that may be unable to withstand the growing costs of shipping goods to consumers. Typically, online retailers want to have a uniform and reliable stock of goods to sell online, he added.

This deal could be a way for Tuesday Morning's new investors to have an effect on the retailer's business, Saunders said, adding the company is still a going concern. It could also give investors the ability to understand would-be opportunities tied to its supply chain and the potential in combining it with the other brands they've invested in like Pier 1 Imports.

"They could see it as another string to the bow allowing them to do something more creative in the home decor business," he added.