Tailored Brands Inc. has emerged from bankruptcy.
The retail group — parent to the Men’s Wearhouse, Jos. A. Bank, Moores Clothing for Men and K&G Fashion Superstore brands — announced today that it has completed its financial restructuring process and implemented its reorganization plan, which was confirmed in mid-November. It managed to eliminate $686 million of debt and exited Chapter 11 with a “significantly bolstered” balance sheet.
“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,” said president and CEO Dinesh Lathi, “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.”
He added, “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.”
Tailored Brands now has a $430 million asset-based lending facility, a $365 million exit term loan and $75 million of cash from a new debt facility. It expects that the exit financing will be able to support its ongoing operations and enable it to execute on its strategic initiatives.
The Houston-based business filed for bankruptcy in early August as the coronavirus pandemic reduced the demand for workwear, suits and formal fashion as stay-at-home orders kept many Americans indoors.
As it moved forward with Chapter 11 proceedings, Tailored Brands announced the permanent closures of dozens of Men’s Wearhouse stores across the country. Court documents showed that the company planned to shutter more than 30 Men’s Wearhouse outposts, as well as 70 units across other brands, for a total of 100 locations in the first round of shutdowns.
According to a filing four months ago, the retail group had roughly 19,300 employees at the start of February. It operated 1,274 stores in the United States and 125 stores in Canada.