The Next-Gen Men's Wearhouse store.

Tailored Brands Inc. has secured its lifeline.

On Friday morning, the retailer said that it has closed on a $75 million investment from a group of existing shareholders and lenders. The financing consists of $50 million of mandatorily convertible notes and $25 million in additional senior secured debt.

As reported, the men’s wear retailer, which owns Men’s Wearhouse, Jos. A Bank and Moores in Canada, said that it “experienced unanticipated declines in its business” in December 2020 and early 2021, that caused it to “severely underperform against the financial projections upon which its Chapter 11 plan of reorganization was based.”

In order to continue operating, it sought the additional $75 million from Silver Point Capital LP, one of its existing lenders and its largest equity holder. That loan would be converted to equity within three years at $1 a share.

Last week, the trustee in the bankruptcy case, after analyzing the company’s performance since emerging from Chapter 11 in December, supported the request for the additional funding, saying: “The company is in need of additional financing in order to survive the pandemic. The trustee believes that certain losses experienced in recent months may be permanent and do not just reflect a temporary shift in demand.” And without the additional loan, it would “likely result in another restructuring process, putting the company at risk of potential liquidation.”

During its bankruptcy, the company eliminated $686 million of debt from its balance sheet, closed some 500 stores and negotiated a $430 million asset-based loan facility, a $365 million exit-term loan and $75 million of cash from a new debt facility.

“We are seeing solid momentum across all of our brands and continue to advance key strategic priorities, including enhancing our omnichannel experience, launching our Men’s Wearhouse Next-Gen stores and evolving our merchandise assortment via new and expanding partnerships with Michael Strahan, Vera Wang and Alternative Apparel,” said Tailored Brands president and chief executive officer Dinesh Lathi. “This additional financing further ensures we can continue to keep pace with our plans to come out of the pandemic stronger than ever and strategically positioned to help our customers look and feel their best in the moments that matter. We are grateful to our shareholders and lenders for their continued support and confidence as we continue to execute our strategic plan.”