Jos. A. Bank store

Tailored Brands Inc. has adopted a poison pill.

On Tuesday, the men’s wear retailer said its board has adopted a short-term shareholder rights plan to block the ability of a person or group from gaining control of the company at a depressed stock price.

The parent company of Men’s Wearhouse, Jos. A. Bank and other stores, adopted the plan as a result of the “substantial impact” the coronavirus pandemic is having on its business and the “increased volume and volatility in the trading of the company’s stock,” it said.

The plan is designed to allow the shareholders to “realize the long-term value of their investment by reducing the likelihood that any person or group would gain control of Tailored Brands through open market accumulation without appropriately compensating the company’s shareholders for such control or providing the board sufficient time to make informed judgments,” the company said. It is not intended to prevent or interfere with any action the board deems to be in the best interest of shareholders.

The rights can be exercised when anyone acquires 10 percent or more of the company stock. The plan expires March 29, 2021.

Earlier this month, the company reported markedly higher losses in the fiscal fourth quarter and year, and drew on its revolving credit facility in order for it to have cash on hand to weather the current situation. Its stores were forced to close in mid-March and are expected to remain shuttered through at least May 4. The company furloughed its store and most distribution center and office staff and chief executive officer Dinesh Lathi along with other management took pay cuts.

Also on Tuesday, Tailored Brands said it has reopened its fulfillment centers and begun shipping online orders. The centers had been closed since the middle of the month. The centers can now fulfill orders placed online at the Men’s Wearhouse and Jos. A. Bank web sites along with orders placed previously in stores for rental merchandise or new orders placed online.

“Our top priority will always be the safety and well-being of our employees, customers and communities, and I am proud of how quickly our supply-chain leadership modified our distribution center operations to create a safe workplace environment for our fulfillment team members during this health crisis,” Lathi said.

Tailored Brands also said it has reopened its manufacturing plant in New Bedford, Mass., and in partnership with a privately held manufacturer and distributor of medical supplies, will begin the production of cotton washable face masks that can be used when an FDA-approved mask is not available. The factory will use the manufacturer’s material and specifications and provide the sewing. As a result, the company will bring back furloughed workers from that facility to make 50,000 masks over the next few weeks and will continue to look for additional opportunities to help health-care professionals.

The company’s stock closed Tuesday at $1.74, up 19 cents, or 12.3 percent. Its 52-week high was $8.42 and its 52-week low was $1.06.

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