The parent company of Men’s Wearhouse and Jos. A. Banks, is extending the temporary closure of its stores for several more weeks.
Citing what it called the latest guidance from federal, state and local government and health authorities, and in the interest of the health and safety of its customers and employees, Tailored Brands said it will keep its stores closed until May 4.
The retailer is also implementing additional cost reductions, including furloughing all U.S. store employees as well as a “significant portion” of employees in its distribution network and offices.
Tailored Brands is also implementing tiered pay cuts for executive VPs and senior VPs and for those who will be working full time while stores are closed. Company president and CEO Dinesh Lathi and the board will take a 50% pay reduction.
"It was a very difficult decision to furlough employees and one that we did not take lightly; however, this is an important step to ensure the durability of our company and the livelihood it provides for so many,” said Lathi. “We are working to support our furloughed employees through our continued benefit programs, information about jobs that may be open in their areas and information on government resources. We will continue to monitor the situation carefully and look forward to bringing our employees back to work as soon as possible."
Last week, Tailored Brands temporarily suspended its e-commerce fulfillment operations. The company is now looking into whether it can restart the operations in a way that protects employee health and is cash-flow positive. In the meantime, customers may continue to place orders online to be shipped as soon as the fulfillment centers reopen.
"Our top priority will always be the wellbeing of our employees, customers and communities, and we will continue to take whatever actions we deem necessary to serve this priority,” said Lathi.