TAILORED BRANDS FILES FOR CHAPTER 11 BANKRUPTCY
After much speculation, Tailored Brands filed for Chapter 11 bankruptcy protection in Texas on Monday.
The filing comes as the retailer enters into a restructuring support agreement (RSA) with more than 75 percent of its senior lenders. The RSA outlines agreed-upon terms for a pre-arranged financial restructuring plan that is expected to reduce the company’s funded debt by at least $630 million.
Throughout the restructuring process, the company expects that its four retail brands, Men’s Wearhouse, Jos A. Bank, Moores Clothing for Men, and K&G Fashion Superstore will continue to operate.
“As evidenced by the positive results we saw in January and February, we have made significant progress in refining our assortments, strengthening our omnichannel offering, and evolving our marketing channel and creative mix. However, the unprecedented impact of COVID-19 requires us to further adapt and evolve,” said Dinesh Lathi, president and CEO of Tailored Brands. “Reaching an agreement with our lenders represents a critical milestone toward our goal of becoming a stronger company that has the financial and operational flexibility to compete and win in the rapidly evolving retail environment.”
This news builds on the actions the company announced on July 21st to reduce its corporate headcount by 20 percent and to close up to 500 stores.
Another step in reducing the retail apparel square footage in this country. Lord and Taylor, too.
George Zimmer was always the visionary of Men’s Wearhouse. Life after George was never the same. Taking over Jos. A. Bank was a huge mistake and the foundation of current M.W. demise. Boring merchandise “to cover the asses of the masses” has not been a winning approach.
Very true about George and several other senior execs who are no longer with the company. Current managements’ blaming of Covid on the situation is not necessarily true. The company was heading in the wrong direction for several years before Covid. And it’s more than the merchandise. The Board and Senior management have no connection to the roots of the company and have no sense of what made this company great. It’s a sad day.
Agree. What we have is a failure of current leadership, ineffectual strategy, and impossible timing
Going forward look for one or more nameplates to go away or be sold. The jewel in the crown is the rental and special occasion business which has forward viability. It can sustain a much smaller footprint profitably after reorg
I lost all my savings in Tailored brand stock so sad my wife is giving me cold shoulder
Harold Clemens: [Referring to high school] “I’m sure you were very attractive.“
Mary Hartman: [Charmed] “Really?“ [Changing her tone] “What do you think happened to me?”
Mary Hartman, Mary Hartman, Season 1: Episode 3