TAILORED BRANDS MAY SEEK CHAPTER 11 PROTECTION DUE TO PANDEMIC
Men’s Wearhouse owner Tailored Brands Inc said on Wednesday it may have to seek bankruptcy protection or discontinue operations, if the COVID-19 crisis continues to pummel sales, Nivedita Balu reported for Reuters on June 11, 2020.
The retailer said it has taken “decisive actions to manage liquidity”, including borrowing money, while opening nearly half of its stores across the United States and Canada.
Shares of the company, down 70% for the year, rose about 17% after the bell. Apparel retailers have been among the worst hit as their businesses were considered non-essential and their stores had to be closed. They were forced to limit operations to online, which led to furloughing of staff and unpaid leases and rents.
The pandemic has added to Tailored Brands’ woes, as it had already been struggling with competition from fast-fashion brands and a shift to online shopping. As of May 2, the company had long-term debt of $1.4 billion and $244.2 million of cash and cash equivalents.