According to multiple reports, Tailored Brands, the owner of the Men’s Wearhouse and Jos. A. Bank brands, is likely to pursue Chapter 11 bankruptcy protection as soon as its fiscal third quarter amid plunges sales related to the Coronavirus pandemic and economic collapse.
In a filing made with the Securities and Exchange Commission on Monday, the Houston-based company said it was “likely that we will pursue a reorganization under applicable bankruptcy laws, possibly as soon as during the third quarter of fiscal 2020, which begins on August 2, 2020.”
Specifically, the company said in the filing that it doesn’t have enough cash on hand or expected cash to pay its creditors under its asset-backed loan facility beginning in the fourth quarter of fiscal 2020.
Management is exploring alternatives, “including seeking a restructuring, amendment or refinancing of our debt through a private restructuring or reorganization under applicable bankruptcy laws,” the retailer said.
Tailored Brands earlier this month said it would cut about 20 percent of its corporate positions by the end of the second quarter and close as many as 500 stores due to “the unprecedented and industrywide business disruptions resulting from the coronavirus pandemic,” resulting in a $6 million second-quarter charge.
The company also announced earlier this month that chief financial officer Jack Calandra was leaving the company as of July 31st.