The owner of Men’s Wearhouse is set to wrap up its bankruptcy case by the end of the month.
CEO Dinesh Lathi said the men’s wear specialist has already laid new operational groundwork positioning the company for a solvent future. Not only has Tailored Brands spent the past three months wrangling the restructuring, he said, but it has also deployed critical omnichannel services including contactless payment and tech enabling shoppers to retrieve their online purchases at a store. Lathi said the apparel company has “further curated” its assortment with relevance in mind and forged fresh partnerships, with Men’s Wearhouse’s recent deal with Michael Strahan’s brand exemplifying this new approach.
Pointing to the opening of the company’s inaugural “next-generation store” in Texas, Lathi said, “These and other actions taken while in Chapter 11 are the continuation of a strategic transformation that started well before Covid-19 and will position us to compete and succeed for the long term.”
The reorg plan makes the company’s lenders its new owner upon exit and wiped Tailored Brands’ balance sheet of $686 million in debt, which at one point ballooned to more than $2 billion after it purchased Jos. A Bank for $1.8 billion in 2014. The clothing firm, which also owns the Moores Clothing for Men and K&G Fashion Superstore nameplates, has a $430 million asset-based lending facility, a $365 million exit term loan, and $75 million in cash from a new debt facility funding ongoing operations and strategic initiatives.
“We look forward to entering the peak holiday season with this process behind us and to being positioned to grow our business by providing customers with selection, convenience, service and value across all our brands,” Lathi said, though there’s no word on Tailored Brands’ plan to close up to 500 of its 1,400 stores.
In January, the company tried to reduce its debt burden by selling Joseph Abboud to WHP Global for $115 million after purchasing it in 2013 for $97.3 million.