Men’s Wearhouse parent company considering bankruptcy

Coronavirus has slashed demand for suits and formal wear

TRD NATIONAL /
Jun.June 09, 2020 09:03 AM
Tailored Brands President and CEO Dinesh Lathi (Getty, iStock)

Tailored Brands President and CEO Dinesh Lathi (Getty, iStock)

Men’s Wearhouse and Jos. A. Bank may soon join the growing list of retailers that have declared bankruptcy in recent months.

Tailored Brands, the retailers’ Houston-based parent company, has been reaching out to interested parties in an effort to restructure more than $1 billion in debt, according to Bloomberg. The plans are still in the early stages and the company may also seek alternative forms of financing, sources told the publication.

The retailer announced last month that it planned to reopen 300 stores by Memorial Day. Market conditions and reopening prospects will impact the company’s restructuring plans. A Men’s Warehouse store in Boston was looted last week during nationwide protests against police brutality.

Tailored Brands had been struggling for several years before the pandemic slashed demand for suits and other formal wear. The company’s sales have fallen every year since 2016, and its stock price has gone from more than $66 in 2015 to under $3 today. Its bonds have also gone from near par in February to just 30 cents on the dollar.

Law firm Kirkland & Ellis and investment bank PJT Partners are advising Tailored Brands on the potential restructuring, while a group of lenders is being advised by law firm Gibson Dunn and investment bank Houlihan Lokey. [Bloomberg] — Kevin Sun


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