Men’s Wearhouse owner moves closer to bankruptcy
Tailored Brands Inc. could be the next big apparel retailer to file for bankruptcy.
The parent company of Men’s Wearhouse and Jos. A. Bank, said in a filing late Monday with the Securities and Exchange Commission late Monday that it has determined “that there is substantial doubt about our ability to continue as a going concern.”
“Although we are evaluating several alternatives, it is 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 Aug. 2, 2020,” the retailer stated.
The filing would not come as a surprise. Tailored Brands skipped an interest payment on July 1 of about $6.1 million for Men’s Wearhouse on 7% senior bonds due in 2022, triggering a 30-day grace period, which runs out this week.
“Absent obtaining a waiver from our lenders or negotiating an agreement to avoid acceleration of our indebtedness, we will be in default on all of our indebtedness and we do not have sufficient liquidity to repay the amounts due under our indebtedness, consisting of our term loan, senior notes and [asset-backed loan] facility,” the retailer stated in the filing.
For its most recent quarter, ended May 2, Tailored Brands lost $269.9 million. Sales fell 60% fell to $286.7 million as its stores remained closed due to the pandemic.