Men’s retailer Tailored Brands Inc. on Tuesday completed a financial restructuring that also marked its exit from Chapter 11 bankruptcy court protection.
The restructuring eliminated $686 million in debt. The company now has an improved capital structure that includes a $430 million asset-based lending facility, a $365 million exit term loan and $75 million of cash from a new debt facility. The parent to Men’s Wearhouse expects that the exit financing will support ongoing operations and allow it to execute on strategic initiatives.
“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 CEO. “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 omnichannel 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.”
The company, which also owns the Jos. A. Bank, Moores Clothing for Men and the K&G Fashion Superstore nameplates, filed its voluntary Chapter 11 petition in August. The chain entered into a restructuring agreement with over 75 percent of its senior lenders just before it filed for bankruptcy court protection. Tailored Brands said on Tuesday that it has the support of its new owners, which are comprised of its pre-bankruptcy lenders.
The retailer has had financial troubles for some time, which were exacerbated by the coronavirus pandemic. These issues largely began when the company, known as The Men’s Wearhouse Inc., acquired its retail competitor Jos. A. Bank Clothiers Inc. for $1.8 billion in 2014, taking on a large debt load. Following the transaction, the company renamed itself Tailored Brands.