Tailored Brands Inc. has secured some badly needly additional financing less than three months after it exited bankruptcy.
The parent company of Men’s Wearhouse, Jos. A. Bank and Moores, has closed on a $75 million investment by a group of existing shareholders and lenders. The financing consists of $50 million of mandatorily convertible notes and $25 million in additional senior secured debt.
According to papers filed in the Southern District of Texas last week, Tailored Brands needed the financing in order to continue operating, reportedWomen’s Wear Daily. The company “experienced unanticipated declines in its business” in December 2020 and early 2021, which caused it to “severely underperform against the financial projections upon which its Chapter 11 plan of reorganization was based,” according to a notice of an emergency bankruptcy court hearing,
Men’s Wearhouse, which exited Chapter 11 in December, said the financing will provide the company with additional liquidity “as it continues to advance its strategic plans to ensure it is best positioned to meet the evolving needs of its customers following the COVID-19 pandemic, and demonstrates the continued commitment of its investors to the long-term success of the company.”
“This additional financing further ensures we can continue to keep pace with our plans to come out of the pandemic stronger than ever and strategically positioned to help our customers look and feel their best in the moments that matter,” said Tailored Brands president and CEO Dinesh Lathi.