Tailored Brands Emerges From Bankruptcy

(RTTNews) - Tailored Brands Inc., which owns menswear brands Men's Wearhouse and Jos. A. Bank, announced its emergence from Chapter 11 protection, eliminating $686 million of existing debt.

The company has now completed its financial restructuring process and the implementation of the Plan of Reorganization confirmed by the U.S. Bankruptcy Court on November 13.

It was in early August that the company filed for bankruptcy protection, severely hit by sluggish demand amid the coronavirus woes.

Tailored Brands now operates with a strengthened capital structure, which consists of a $430 million ABL facility, a $365 million exit term loan and $75 million of cash from a new debt facility.

The company expects this exit financing to support ongoing operations as well as its strategic initiatives.

Tailored Brands President and Chief Executive Officer Dinesh Lathi said, "... we continued to strengthen our business and brands with efforts focused on expanding our omni-channel 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."

The company, which reported 2.4 percent rise in total retail comparable sales in February with positive results in all brands, had to temporarily close all stores on March 17 and all e-commerce fulfillment centers in the U.S. and Canada on March 20.

In July, citing the unprecedented impact of COVID-19, the specialty retailer of menswear announced its organizational changes, including plans to reduce its corporate headcount by about 20 percent, and up to 500 retail stores closures, among others.

More and more bricks and mortar retailers are filing for bankruptcy, hurt by severe business loss amid the worsening coronavirus pandemic and related lockdowns across the nation, along with customers' shift to online shopping.

In late November, musical instrument retailer Guitar Center Inc. filed for Chapter 11 bankruptcy protection.

Lord & Taylor, one of the oldest department store chains in the U.S., filed for bankruptcy protection in August, while Ascena Retail Group, Inc., which owns Ann Taylor, LOFT, Lane Bryant, and Justice brands, among others, filed for it in July.

In recent months, several other major retailers such as Brooks Brothers Group Inc., J. Crew, J.C. Penney and Neiman Marcus have also filed for bankruptcy.