Tailored Brands to emerge from Chapter 11 protection this month
Tailored Brands is set to emerge from Chapter 11 bankruptcy protection by the end of November.
The specialty menswear retailer said on Friday that the U.S. Bankruptcy Court for the Southern District of Texas approved the company’s reorganization plan.
The parent company of Men’s Wearhouse, Jos.A Bank and Moores men’s stores in the U.S. and Canada filed for bankruptcy back in August, joining a list of brick-and-mortar retailers that have succumbed to the economic fallout of the Covid-19 pandemic.
Under the terms of the plan, Tailored Brands will emerge from bankruptcy with a $430 million ABL facility, a $365 million exit term loan and $75 million of cash from a new debt facility to support ongoing operations and strategic initiatives. Moreover, the plan will help eliminate $686 million of funded debt from its balance sheet.
President and chief executive officer Dinesh Lathi said in a statement that the company had progressed steadily through its financial restructuring, implemented new buy online, pick-up in store and contactless payment technology to better serve its customers, as well as further curated its assortments and developed new partnerships among other initiatives to remain relevant.
“These and other actions taken while in Chapter 11 are the continuation of a strategic transformation that started well before Covid-19 and will position us to compete and succeed for the long term,” said Lathi.
“Our deep appreciation goes out to our employees, customers, vendors, landlords and lenders for the ongoing support they have shown us. We look forward to entering the peak holiday season with this process behind us and to being positioned to grow our business by providing customers with selection, convenience, service and value across all our brands.”
The company previously announced that it will equally reduce its corporate workforce by 20 percent and shut as many as 500 stores.
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