Tailored Brands Inc. has turned the page.
Late Monday night, the men’s wear retailer revealed that it has emerged from Chapter 11 and completed its restructuring. Under the terms of the plan, which was confirmed by the U.S. Bankruptcy Court on Nov. 13, 2020, the company has eliminated $686 million of debt from its balance sheet.
“We are thrilled to emerge from Chapter 11, having gained the financial and operational flexibility we need to support each of our brands in this rapidly evolving retail environment, continue to show up strong for our customers and remain an attractive employer. I want to thank all of the lenders, employees, customers, landlords, vendors and other partners who helped us get to this point,” said Dinesh Lathi, Tailored Brands president and chief executive officer.
“Be assured that, while addressing our underlying financial challenges precipitated by the unprecedented impact of COVID-19, we continued to strengthen our business and brands with efforts focused on expanding our omni-channel capabilities to provide even greater convenience for our customers, curating our merchandise assortments to align with today’s needs and trends, and launching exciting new partnerships that appeal to existing and new customers. As a result, we are confident we are well-positioned for the future and look forward to building upon this momentum as we enter this next chapter,” he added.
Tailored Brands now operates with a $430 million asset-based loan facility, a $365 million exit-term loan and $75 million of cash from a new debt facility.
As reported, the parent company of Men’s Wearhouse, Jos. A. Bank and Moores men’s stores in the U.S. and Canada, filed for bankruptcy in August as a result of the coronavirus pandemic, its dependance on tailored clothing and a crushing debt load that it had accumulated in its $1.8 billion acquisition of Jos. A. Bank in 2014.
Under the terms of the deal, Tailored Brands’ reorganization effectively hands over control of the business to its lenders.