Tailored Brands is ready for its next chapter.
The company, whose brands include Men's Wearhouse, Jos. A. Bank, Moores Clothing for Men and K&G, said that it has emerged from Chapter 11 bankruptcy protection and completed its restructuring. Under the terms of the plan, Tailored Brands has eliminated $686 million of debt from its balance sheet.
Tailored Brands filed for bankruptcy https://chainstoreage.com/owner-mens-wearhouse-files-bankruptcy in August, about one month after it announced plans to close 500 stores “over time” and reduce its corporate workforce, citing business disruptions from the COVID-19 pandemic. It also was struggling under a big debt load stemming from its acquisition of Jos. A. Bank in 2014 for $1.8 billion.
While Tailored Brands’ reorganization effectively hands over control of the business to its lenders, its pre-bankruptcy management team remains in place.
The company now operates with a $430 million asset-based loan facility, a $365 million exit-term loan and $75 million of cash from a new debt facility.
“We are thrilled to emerge from Chapter 11, having gained the financial and operational flexibility we need to support each of our brands in this rapidly evolving retail environment, continue to show up strong for our customers and remain an attractive employer, said Tailored Brands president and CEO Dinesh Lathi. “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 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. 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.”