Tailored Brands Inc. is at risk of being delisted from the New York Stock Exchange.
The menswear specialty retailer, which operates under the ticker “TLRD,” announced after market close on Friday that it received notice two days prior from the NYSE of its noncompliance with the stock exchange’s continued listing requirements.
According to the criteria, companies must maintain an average market capitalization of $50 million, plus stockholders’ equity of at least $50 million and an average closing share price of no less than $1 over a consecutive 30-trading day period.
The notice doesn’t affect the Men’s Wearhouse parent’s business operations or its Securities and Exchange Commission reporting requirements. It also does not trigger a breach under the company’s material debt obligations.
To avoid delisting, Tailored Brands must inform the NYSE of its plan to return to compliance with its listing standards. If it creates such a plan, it has 18 months to meet the requirements it set out. (Its stock will continue to be listed and traded on the stock exchange during this period.) Failure to regain compliance would result in TLDR’s potential suspension and delisting.
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The notice came a day after the Fremont, Calif.-based business — also parent to JoS. A. Bank — announced that it was eyeing store closures and job cuts following “unprecedented and industrywide business disruptions” stemming from the COVID-19 health crisis: It shared that it has identified up to 500 brick-and-mortar units for possible closures and intends to slash about 20% of its corporate workforce by the end of the fiscal second quarter.
In addition, the company plans to reduce and adjust its store organization and supply chain infrastructure to serve its shrinking store footprint. It expects to spend roughly $6 million on severance payments and other terminations costs during the second quarter.
“Further actions are needed to help us strengthen our financial position so we can navigate our current realities,” president and CEO Dinesh Lathi wrote in a release on Tuesday. “While today’s announcement is a difficult one, we are confident these are the right next steps to protect our business and position us to more effectively compete in today’s environment.”