Retailer Tuesday Morning has sold its 1.2 million-square-foot industrial distribution portfolio to a joint venture between M2G Ventures and Pennybacker Capital. The deal also included the company's 105,000-square-foot headquarters office in Dallas, Texas.

The deal closed as Tuesday Morning exited its Chapter 11 Bankruptcy. The retailer entered into bankruptcy in May 2020. According to a public announcement in early January, Tuesday Morning left the bankruptcy with 490 or its 687 stores and a $110 million lending facility backed by J.P. Morgan, Wells Fargo and Bank of America. In September, the retailer's sales were down 28% compared to pre-pandemic levels and net cash flow was negative in October and November, according to reporting from RetailDive.

The sales of Tuesday Morning's industrial portfolio and corporate office has helped to unlock capital for the retailer. "We are pleased to partner with Pennybacker to unlock value for Tuesday Morning, while significantly growing our urban industrial portfolio," said Jessica Miller Essl, co-founder of M2G Ventures, said in a statement. M2G Ventures and Pennybacker Capital are focused on value-add urban-infill industrial development. The joint venture plans to continue to grow its portfolio in the Dallas-Fort Worth market this year.