The owner of Jos. A. Bank and Men’s Wearhouse stores in Delaware has filed for Chapter 11 bankruptcy protection in Texas as it works out a deal with creditors.
Tailored Brands, Incalso owns budget-priced men’s and women’s retailer K&G.
Tailored Brands, Inc.announced that it has entered into a restructuring support agreement with more than 75 percent of lenders.
The plan is expected to reduce the company’s funded debt by at least$630 million.
The agreement is no assurance that the company will emerge unscathed from Chapter 11. Under the process, an auction can be set up for selling the company.
The Company expects that its four retail brands, Men’s Wearhouse, Jos A. Bank, Moores Clothing for Men and K&G Fashion Superstore will remain in operation.
“As evidenced by the positive results we saw in January and February, we have made significant progress in refining our assortments, strengthening our omni-channel offering and evolving our marketing channel and creative mix. However, the unprecedented impact of Covid-19 requires us to further adapt and evolve,” said Tailored Brands President and CEO Dinesh Lathi. “Reaching an agreement with our lenders represents a critical milestone toward our goal of becoming a stronger company that has the financial and operational flexibility to compete and win in the rapidly evolving retail environment.”
The company earlier announced plans to cut costs and close stores. Men’s Wearhouse has stores in Dover and Christiana, with Jos. A. Bank stores operating in Greenville and Christiana.
Tailored Brands placed a bet on acquiring menswear retailers that have been struggling with casual dress codes at the nation’s workplaces. Stay at home orders only accelerated the trend, with retail stores closed under emergency orders for not being considered essential businesses.
Earlier, Brooks Brothers filed for bankruptcy, despite making progress in converting to more casual attire.