Tailored Brands said on Tuesday it has emerged from bankruptcy protection following a financial restructuring process that helped the U.S. men’s fashion retailer eliminate $686 million of debt from its balance sheet.
The company, which owns Men’s Wearhouse, Jos. A. Bank, Moores Clothing for Men, and K&G Fashion Superstore, filed for Chapter 11 bankruptcy in August, joining a list of brick-and-mortar retailers succumbing to the hit from the COVID-19 pandemic.
It confirmed a restructuring plan last month that consisted of a $430 million lending facility. Tailored Brands also said on Tuesday it now operates with a capital structure that includes an exit term loan of $365 million, which it expects will support its ongoing operations and strategic initiatives.
“We are thrilled to emerge from Chapter 11, having gained the financial and operational flexibility we need to support each of our brands in this rapidly evolving retail environment, continue to show up strong for our customers, and remain an attractive employer,” said Dinesh Lathi, president and CEO of Tailored Brands. “I want to thank all of the lenders, employees, customers, landlords, vendors, and other partners who helped us get to this point.”
Lathi added, “Be assured that, while addressing our underlying financial challenges precipitated by the unprecedented impact of COVID-19, we continued to strengthen our business and brands with efforts focused on expanding our omnichannel capabilities to provide even greater convenience for our customers, curating our merchandise assortments to align with today’s needs and trends, and launching exciting new partnerships that appeal to existing and new customers. As a result, we are confident we are well-positioned for the future and look forward to building upon this momentum as we enter this next chapter.”