Suits retailer Men’s Wearhouse filed for bankruptcy on Sunday as the coronavirus kept millions of office workers home and in lounge pants.
Tailored Brands parent company, which also owns Jos A. Bankfiled for Chapter 11 protection in Houston, Texas, after reaching an agreement with the majority of its lenders to keep 1,400 stores open.
The deal gives the struggling retailer, which also owns Moores Clothing for Men and K&G Fashion Superstore, debtor-in-possession financing of $500 million to keep stores open as it seeks to reduce its $630 million debt. dollars.
“The unprecedented impact of COVID-19 is forcing us to adapt and evolve further,” Tailored Brands CEO Dinesh Lathi said in a statement. “Reaching an agreement with our lenders represents a critical step towards our goal of becoming a stronger business that has the financial and operational flexibility to compete and win in the rapidly changing retail environment.”
Tailored Brands hinted at trouble in July when it announced plans to close 500 stores and cut its workforce by around 20%. His filing is the latest in a long string of retailer bankruptcies as the coronavirus crushes demand for workwear.
Brooks Brothers, which sells more expensive men’s clothing, filed for bankruptcy in July, as did Ascena Retail Group Inc., which owns Ann Taylor.
Of course, Men’s Wearhouse, known for its ads featuring charismatic entrepreneur George Zimmer and its slogan “You’re going to love how you look.” I guarantee it. — had also been struggling since before the pandemic took hold as casual workwear gained momentum. The company was also burdened with significant debt following the 2014 acquisition of Jos A. Bank, a merger that Zimmer opposed.
Zimmer, who founded Men’s Wearhouse in 1973, was ousted in 2013, reportedly over his aggressive efforts to make it private.